Question

Which of the following A/c would not be transferred to profit and loss A/c?

• A. Bad debts
• B. Discount allowed
• C. Accumulated depreciation A/c
• D. Discount received a/c

Answer 1

Answer: (C)

Accumulated depreciation A/c

Option C is the correct one.

Accumulated depreciation appears either shown as a deduction from the asset or the same may appear in the liability side of the Balance Sheet.and other two items are expenses (bad debts & Discount allowed) so it would be debited to P&L a/c and another Discount received credited to P& L account.as income for the year.