Question

Decrease in the value of assets should be \(\underline{\hspace{1cm}}\) to Profit and Loss Adjustment account.

• A. Debited
• B. Credited
• C. Added
• D. Equal

Hint:

A decrease in the value of assets is recorded as a debit to the Profit and Loss Adjustment account.

Answer 1

The Correct Option is A

Step 1: Recall accounting principles.
When there is a decrease in the value of assets, it is treated as a loss and debited to the Profit and Loss Adjustment account.

Step 2: Evaluate the options.
- Debited: Correct answer, as a decrease in asset value is treated as a loss. - Credited: Would apply to an increase in asset value. - Added: Not applicable in this case. - Equal: Does not apply in this context.

Step 3: Conclusion.
Thus, the correct action is to debit the decrease in asset value.

Final Answer: \[ \boxed{Debited} \]