If the Depreciation Account is listed in the Trial Balance, where is it recorded in the financial statements?

Show Answers

In the Profit and Loss AccountWithin the Trading AccountAs a deduction from the specific asset accountPresented on the liabilities section of the balance sheetNone of the above

Explanation

When the Depreciation Account appears in the Trial Balance, it is typically transferred to the Profit and Loss Account to reflect the expense for the period. It is not shown in the Trading Account, nor directly deducted from the asset account in this case. It also does not appear under liabilities on the balance sheet.