Advertisements
Advertisements
Question
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Options
Debited
Credited
Added
Equal
Solution
Decrease in the value of assets should be debited to Profit and Loss Adjustment Account.
Explanation:
A decrease in the value of assets (such as depreciation, bad debts, or impairment) is considered an expense for the business. Expenses and losses are always debited to the Profit and Loss Adjustment Account because they reduce the overall profit of the business.
APPEARS IN
RELATED QUESTIONS
The Profit or Loss from revaluation on the retirement of a partner is shared by ______.
State whether the following statement is true or false with reason.
Retiring partner is not entitled to share in general reserve and accumulated profit.
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Do you agree or disagree with the following statements:
Accumulated profit is to be shown on Assets side of Balance sheet.
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Retiring partner is entitled to share in Reserve Fundand Accumulated Profit.
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Descrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
