Where the provision for depreciation account appears in Balance sheet?

Liabilities side

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Asset side

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Trading account

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Profit & loss account

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Solution

The correct option is A Liabilities side
Under provision for depreciation method of recording depreciation, Fixed asset is shown at its original cost on the asset side in balance sheet and depreciation till date is accumulated in provision for depreciatiion account which is shown on liabilities side in balance sheet.

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