passwella.
Menu

WAEC Financial Accounting 2000 Question 32

Question 32

Depreciation

The accounting entry for depreciation at the end of each year is to debit

  1. A.Provision for Depreciation Account and credit Machinery Account
  2. B.Provision for Depreciation Account and credit Profit and Loss Account
  3. C.Trading Account and credit Provision for Depreciation Account
  4. D.Manufacturing Account and credit Provision for Depreciation Account.
Show the answer and explanation

Answer: D (Manufacturing Account and credit Provision for Depreciation Account.)

Explanation

The year's depreciation is an expense: debit the manufacturing (or profit and loss) account and credit the provision for depreciation.