The 'Depreciation' entry is: MCQ with Answer and Explanation

Question
The 'Depreciation' entry is:
A. Debit P&L A/c, Credit Depreciation A/c
B. Debit Asset A/c, Credit Depreciation A/c
C. Debit Depreciation A/c, Credit Asset A/c
D. Debit Depreciation A/c, Credit P&L A/c
Answer: Option C
Solution (By JKSSB Mock Tests)
Depreciation is an expense: Depreciation A/c Dr. To Asset A/c (or Accumulated Depreciation).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
Which voucher is prepared when cash is paid for stationery?
A. Payment Voucher
B. Contra Voucher
C. Receipt Voucher
D. Journal Voucher
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Correct Answer: Option A

Explanation:
A payment voucher is prepared for all cash payments, including payments for expenses like stationery.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
An account in the ledger has a debit total of Rs 10,000 and a credit total of Rs 8,000. It is said to have a:
A. Debit balance of Rs 2,000
B. Credit balance of Rs 2,000
C. Credit balance of Rs 18,000
D. Debit balance of Rs 18,000
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Correct Answer: Option A

Explanation:
The balance is the difference between the sides. Since the debit side is heavier by Rs 2,000, it is a debit balance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A and B are partners sharing profits 3:2. They admit C for 1/4th share. A and B decide to share future profits equally. What is the sacrificing ratio of A and B?
A. 3:2
B. 5:3
C. 1:1
D. 9:1
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Correct Answer: Option D

Explanation:
C gets 1/4. Remaining share = 3/4. New shares of A = 3/8, B = 3/8. Sacrifice = Old - New. A: 3/5 - 3/8 = 9/40. B: 2/5 - 3/8 = 1/40. Ratio is 9:1.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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