Question

Write the word/term/pharse which can substitute each of the following statement :

An account to which the balance in depreciation account is transferred.

Answer 1

An account to which the balance in depreciation account is transferred- Profit & Loss Account

Explanation:
Depreciation is an indirect expense of the business and it is classified under nominal accounts. All the indirect expenses are transferred to the Profit & Loss Account. Thus, Profit and Loss Account is the account where the balance in depreciation account is transferred.