PRC-1 · Chapter 10 · Question 100 of 100
A business records depreciation of Rs. 10,500 for the year. Which of the following is the correct journal entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit Depreciation Expense Rs. 10,500, Credit Accumulated Depreciation Rs. 10,500
Explanation
Depreciation is an expense, so it is debited to the Depreciation Expense account. The corresponding credit goes to the Accumulated Depreciation contra-asset account to reduce the asset's net book value.
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