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What is provision for Depreciation?

Accountancy

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?

ALDRIN G

CA Inter

★ 12K+

14-Oct-20 11:12

319

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.