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    Question

    Depreciation is appearing in the 'Trial Balance' of a

    firm. At the time of preparing 'Annual Accounts', it should be shown in:
    A Profit & Loss Account Correct Answer Incorrect Answer
    B Profit & Loss Account or Balance Sheet Correct Answer Incorrect Answer
    C Balance Sheet Correct Answer Incorrect Answer
    D Profit & Loss Account and Balance Sheet Correct Answer Incorrect Answer

    Solution

    Depreciation is present in Trial balance this means already a journal has been passed related to depreciation and has been posted in ledger. Now depreciation being a nominal account needs to be transferred to P&L account. 

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