Question

Depreciate furniture with book value Rs125000 @10percent p.a.for the year journal entry

Answer 1

Answer:

Depreciation A/c....................Dr.                  12500

To, Furniture A/c.....................Cr.                                                 12500

Explanation:

Depreciation is an Expense of firm, but there is no outflow of cash.

Depreciation is an Expense therefore it is part of nominal A/c, it shows in Debit Side of P&L.

Value of furniture is decrease due to wear and tear, and it is part of real account.

And, In furniture A/c it show on credit side on the name of Depreciation.