Every year very huge amount of depreciation debited at any
of company's account, which is actually non cash expense,
now where actually amount goes at the year end?
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Answer / h.r. sreepada bhagi
For any accounting entry debit & credit aspects are a must
the total on the two sides should be the same. As mentioned
in the question depreciation does not result in cash-flow at
that point of time so it's anon cash expense.
Depreciation amount is credited to Assets A/c or
'Accumulated Depreciation' A/c and is debited to Profit &
Loss A/c.
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Profit & Loss A/c used in this case for only settlement of
the depreciation a/c.
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