Question

Which of the following entry will be passed for charging depreciation

Answer 1

Answer:

Option (d) Depreciation A/c Dr.

To Asset A/c

Here, Asset A/c is credited because the value of asset is being decreased.

Hope it helps

Answer 2

Option (d) will be the answer.

Explanation:

Depreciation is the way by which we can calculate the reduction in the value of fixed assets each year. when we use any fixed asset like building, machinery, plant, furniture, vehicle, etc. their value in the accounts will be decreased with each year due to regular use, aging, damage and sometimes because of changes in the market. this decrease in the value of assets will be and it is always recorded in the books of account. it is calculated on the amount/value of fixed asset on which we are asked to charge depreciation on.

since depreciation is an expense for us, we will debit it, because all expenses are debited. and the fixed asset on which we are asked to charge depreciation on, we will credit it, because we have to decrease its value in the books. so our entry for depreciation will be:-

                                  Depreciation a/c   dr.     xx

                                                         to Assets a/c     xx

so, option (d) is correct answer.