In the balance sheet, the balance on the provision for Depreciation Account shown as
Answer Details
In the balance sheet, the balance on the provision for Depreciation Account is shown as a deduction from fixed assets. The provision for depreciation is the estimated amount set aside to be deducted from the original cost of the asset in order to calculate its net book value or carrying value. The net book value of an asset is the difference between its original cost and the accumulated depreciation charged against it. Since the provision for depreciation is a contra account to fixed assets, it is shown as a deduction from fixed assets in the balance sheet.