When separate provision for depreciation A/c is not maintained the depreciation is charged directly to __________.

Asset A/c credit side

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Asset A/c Debit side

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Liabilities side

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None of the Above

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Solution

The correct option is A Asset A/c credit side
When the depreciation is charged by creating accumulated depreciation account, following journal entry is passed:

Depreciation A/c Dr.
To Accumulated Depreciation A/c

Under accumulated depreciation method, a separate account is created for accumulation of depreciation instead of being adjusted in asset a/c.

When separate provision for depreciation a/c is not maintained, the depreciation is charged directly to asset a/c for which following journal entry will be passed:

Depreciation A/c Dr.
To Assets A/c

Suggest Corrections

Similar questions

Q. Assets continues to show on __________ when provision for depreciation A/c is maintained.

Q. Which of the following statements is/are false?
I. The term 'depreciation', 'depletion' and 'amortization' convey the same meaning.
II. Provision for depreciation a/c is debited when provision for depreciation a/c is created.
III. The main purpose of charging the profits and loss a/c with the amount of depreciation is to spread the cost of an asset over useful life for the purpose of income determination.

Q. Which of the following statements is/are false?
I. The term 'depreciation', 'depletion' and 'amortization' have same meaning
II. Provision for depreciation A/c is debited when provision for depreciation is created.
III. The main purpose of charging the Profit and Loss A/c with the amount of depreciated is to spread the cost of an asset over its useful life.

Q. Which of the following statements is/are false?
(I) The term 'depreciation', 'depletion' and 'amortization' convey the same meaning.
(II) Provision For Depreciation A/c debited when Provision For Depreciation A/c is created.
(III) The main purpose of charging the Profit & Loss A/c with the amount of depreciation is to spread the cost of an asset over its useful life for the purpose of income determination.
The correct option is -

A piece of machinery worth Rs. 4,00,000 is charged depreciation (Straight line method) at 10%.
Which account shall be credited for recording depreciation when accumulated depreciation account is maintained?

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