The depreciation on a motor vehicle that is being used for manufacturing and administration is charged to the?
-
A.
debit side of manufacturing and profit and loss account -
B.
debit side of profit and loss account only -
C.
credit side of profit and loss account only -
D.
debit side of manufacturing and balance sheet
Correct Answer: Option B
Explanation
‘The profit and loss account is used by manufacturing concerns to ascertain the cost of production at various stages. A motor vehicle used by a manufacturing company would be depreciated to the debit side of profit and loss account