A piece of machinery worth 1,00,000 is charged depreciation (Straight line metho

Question

A piece of machinery worth 1,00,000 is charged depreciation (Straight line method) at 10%. In the journal entry for transfer of depreciaton to income statement, which account shall be credited ?

Options:

A . Depreciation account

B . Machinery account

C . Provision for depreciation account

D . None

Answer: Option A
:
A
The correct entry would be
Profit or loss A/c Dr
10000
To Depreciation A/c
10000

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