PRC-1 · Chapter 2 · Question 14 of 100
At the end of the financial year, 'Vertex Corp' needs to record its annual depreciation expense of Rs. 150,000. Which book of prime entry is used for this purpose?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) General Journal
Explanation
Year-end adjustments, such as calculating depreciation, accruals, and prepayments, do not involve immediate cash flow or routine inventory trading. Therefore, they are recorded in the general journal.
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