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GCE Financial Accounting 1989 Question 22

Question 22

Depreciation

The balance of the provision for Depreciation Account is shown in the

  1. A.Trial Balance as a debit
  2. B.Trial Balance as a credit
  3. C.Balance Sheet as a Fixed Asset
  4. D.Balance Sheet as a long term liability
  5. E.Balance Sheet as a current liability.
Show the answer and explanation

Answer: B (Trial Balance as a credit)

Explanation

Provision for depreciation is a credit balance; in the balance sheet it is deducted from the asset's cost.