O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2014 · Q151 Mark

How will the annual depreciation charge on a non-current asset be recorded?

Adebit: asset account, credit: provision for depreciation account

Bdebit: income statement, credit: provision for depreciation account

Cdebit: provision for depreciation account, credit: asset account

Ddebit: provision for depreciation account, credit: income statement

✓ Correct answer

B: debit: income statement, credit: provision for depreciation account

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2014 Paper 1 Variant 1, question 15.

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