Question

When depreciation is recorded by charging to Provision for Depreciation Account, the asset appears -

• A. At original cost
• B. At original cost / less depreciation
• C. At market value
• D. At realizable value

Answer 1

The correct option is A At original cost

When depreciation is recorded to provision for depreciation account, depreciation is accumulated as provision on the liability side of balance sheet and when it is actually charged on asset at that time depreciation is subtracted from asset cost.