True or False
State whether the following statement is True or False with reasons:
Balance of depreciation account is transferred to Profit & Loss A/c.
This statement is True.
Depreciation is a non-each expenses for the business, every income or expense account is to be transferred to profit & loss A/c. to ascertain the actual profit or loss of the business. Therefore the balance of depreciation account is transferred to Profit and Loss A/c.
Concept: Accounting Treatment for Share Capital
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