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