​Depreciation is appearing in the 'Trial Balance' of a firm. At the time of preparing 'Annual Accounts', it should be shown in :

Correct option is A

The correct answer is (a) Profit & Loss Account

Explanation:
• When depreciation appears in the Trial Balance, it means it has already been adjusted in the asset’s value.
• Therefore, it is treated purely as an expense and shown only in the Profit & Loss Account.
• It is not deducted again from the asset in the Balance Sheet.

Information Booster:
• Depreciation represents the reduction in value of fixed assets due to wear and tear, use, or passage of time.
• It is a non-cash expense, reducing the book value of assets over time.
• Accounting standard related: AS-10 (Property, Plant & Equipment).
• The main purpose is to match cost with revenue for the period.
• Common methods: Straight-Line Method (SLM) and Written Down Value (WDV).