Question

In final accounts if a machine is destroyed in fire then is the depriciation of that machine calculated in the profit and loss account? Pls explain why

Answer 1

yes the depreciation of any asset is again calculated in profit and loss account because Asset depreciation allows for businesses to use a tax-write off to pay for fixed assets over time. This process can be used in both taxes and accounting, and can be applied to the cost of buildings, vehicles, equipment, furniture, machines, and even software. This process doesn't create a source of revenue.