Question

0.32. Jourranse uie 10110wing transactions :
1. Charge depreciation on Machinery
20,000​

Answer 1

Answer:debit depreciation account with 20000 and credit machinery account with 20000

Explanation: depreciation account is nominal in nature. It is a charge (loss) on asset. That's why we debit depreciation account. Machinery account is real in nature. Since the charge is made on it (machinery) , we credit that account

Answer 2

Answer:

Depreciation A/C Dr. 20,000

To Machinery A/C 20,000

Explanation:

We debit the losses as per accounting rules for Nominal Accounts, and depreciation is a loss to the firm as depreciation decreases the value of the asset, so due to this we have debited the Depreciation A/C.

And credited the Machinery A/C, since depreciation is charged on the asset - machinery.