MP Board · Class 11 · Accountancy · Financial Statements - IIDepreciation on machinery is deducted from machinery in the Balance Sheet and debited to:
Step-by-Step Solution
Depreciation is an operating expense of the business and is debited to the Profit and Loss Account.
Detailed Options Breakdown
Option : Trading Account
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
Option 1: Profit and Loss Account (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Manufacturing Account
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
Option 3: Capital Account
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
💡 Study Guide: This question tests core syllabus concepts from Financial Statements - II. For formulas, key summaries, and mock exam reference guides, read the full Financial Statements - II Revision Notes.