1.

Depreciate furniture with book value Rs125000 @10percent p.a.for the year journal entry

Answer»

Answer:

Depreciation A/c....................DR.                  12500

To, Furniture A/c.....................Cr.                                                 12500

Explanation:

Depreciation is an Expense of firm, but there is no outflow of cash.

Depreciation is an Expense therefore it is part of nominal A/c, it shows in DEBIT SIDE of P&L.

Value of furniture is decrease due to wear and tear, and it is part of REAL account.

And, In furniture A/c it show on credit side on the name of Depreciation.



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