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Question
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Options
Debited
Credited
Added
Equal
MCQ
Fill in the Blanks
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Solution
Decrease in the value of assets should be debited to Profit and Loss Adjustment Account.
Explanation:
A decrease in the value of assets (such as depreciation, bad debts, or impairment) is considered an expense for the business. Expenses and losses are always debited to the Profit and Loss Adjustment Account because they reduce the overall profit of the business.
shaalaa.com
Admission of Partner> Reserves and Accumulated Profit/Losses - General Reserve
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