Multiple choice

In the case of a manufacturing concern, depreciation on machinery is shown in

  1. debit side of trading account

  2. credit side of trading aaccount

  3. credit side of manufacturing account

  4. debit side of manufacturing account

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 Since in manufacturing concern, goods are produced by machine, it is a direct non-cash expense. Hence, it would be shown in debit side of manufacturing A/c.