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Answer

Accounting Entry: 1. Depreciation A/c ....................Dr. To Asset A/c [Explanation:- Depreciation is a non cash item. When depreciatoin created then assets value should be decreased. According to Golden Rule of Accounting, Assets are Real account, when assets value decreased then assets account should be credited. ] 2. Profit & Loss A/c ....................Dr. To Depreciation A/c [Explanation:- Above entry is a Adjustement entry. Loss arises in respect of depreciation should be Adjusted to Profit & Loss A/c. And show into Balance Sheet, The value of depreciation deducted from respective asset.]