Accounting for IGCSE & O level - Accounting Procedures (Section 6 - No. 11)
Which journal entry describes the double entries for the annual depreciation charge?
Debit the income statement, credit the provision for depreciation account
Debit the provision for depreciation account, credit the income statement
Debit the income statement, debit the provision for depreciation account
Credit the income statement, credit the provision for depreciation account
Explanation
The annual depreciation charge increases expenses on the income statement (debit), and credits the provision for depreciation.
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