A piece of machinery worth 4,00,000 is charged depreciation (Straight line metho

Question

A piece of machinery worth 4,00,000 is charged depreciation (Straight line method) at 10%. Which account shall be credited for recording depreciation when accumulated depreciation account is maintained

Options:

A . Depreciation account

B . Machinery account

C . Accumulated depreciation account

D . None

Answer: Option C
:
C
The correct entry would be
Depreciation A/c Dr
40000
To Accumulated Depreciation A/c
40000

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