Question

What is the effect of depreciation on furniture and machinery in the Profit and Loss Account?

विकल्प

• It is added to net profit

• It is treated as an indirect expense

• It is shown on the credit side

• It increases income

Answer 1

It is treated as an indirect expense

Explanation:

Depreciation on land, building, plant, machinery, and furniture is treated as an indirect expense in the Profit and Loss Account