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What is provision for Depreciation?

1)What is Provision for Depreciation? 2)Why do we credit both provision for Depreciation and depreciation to the Asset ac. 3)What type of account is provision for Depreciation?


G Aldrin

G Aldrin

CA Inter

10K+

14-Oct-20 11:12

17

Answers (2)

Provision for depreciation is an account used to accumulate depreciation charged on Asset. It has a credit balance. It offsets the balance in fixed asset account.


Suraj Lakhotia

Suraj Lakhotia

Admin

14-Oct-20 17:53

Thank You Sir.


G Aldrin

G Aldrin

CA Inter

10K+

14-Oct-20 17:58