Accounting · Sinking Fund
When a Sinking Fund is created for the replacement of a fixed asset, the annual installment amount set aside is debited to which of the following accounts?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Sinking Fund Investment Account
- 2Fixed Asset Account
- 3Cash/Bank Account
- 4Profit and Loss Appropriation Account✓
Correct answer
Profit and Loss Appropriation Account
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