Question

State whether the following statement is True or False with reasons:

Balance of depreciation account is transferred to Profit & Loss A/c.

Options

• True

• False

Answer 1

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.