Question

Increase in the value of assets should be ________ to profit and loss adjustment account. (Fill in the blank by choosing correct option)
(a) debited
(b) credited
c) added
(d) none of these

Answer 1

CREDITED TO PROFIT AND LOSS AC..

Answer 2

Answer:

(b) credited

Explanation:

Assets are those items that can be used to generate income. Increase in the value of assets should be credited to profit and loss adjustment account.

Assets can be of two main types, tangible and intangible.

Tangible assets are those that you can see, touch or feel, such as raw material, machinery and factory buildings.  

Intangible assets are those that can be described such as ideas, software programmes, etc. which have no physical shape or characteristics.

Hence, the correct option is (b).