MCQ Answer | Which Account Is Credited In A Journal Entry To Record Depreciation On Machinery?

Here We Need To Complete The Journal Entry To Record Depreciation On Machinery.

The correct answer is (C) as the journal entry to record depreciation on machinery is resulted in a debit to Depreciation Expense Account and a credit to Accumulated Depreciation Account for machinery. Depreciation on machinery expense is charged to income statement while accumulated depreciation on machinery, which is a contra asset account, is deducted from the cost of the machinery on balance sheet. Depreciation on machinery, which is a temporary account, is charged by applying either straight-line method, written-down value method, sum of years digits, etc.

The other options (A, B and D) of this multiple choice question (mcq) are wrong choices here.