Depreciation appearing in the Trial Balance should be?
AShown as liability in Balance Sheet
BBoth A. and C. above
CDebited to P&L A/c
DReduced from related asset in Balance Sheet
Correct answer
C. Debited to P&L A/c
Explanation
Any item appearing in the Trial Balance will have one effect i.e., depreciation appearing in the Trial Balance will be debited to the Profit & Loss Account. However, if depreciation is given in the adjustments, it will have double effect i.e., it should be debited to P&L A/c and deducted from the gross fixed asset block in the Balance Sheet also.