Question on: WAEC Accounting - 2016
When a fixed asset is disposed off, the accounting entries to write off the asset are Debit
A
Profit and loss account; credit asset disposal account
B
Asset disposal account; credit profit and loss account
C
Asset disposal account, credit asset account
D
Profit and loss account; credit provision for depreciation account
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Correct Option: C
How to record the disposal of assets
- No proceeds, fully depreciated. Debit all accumulated depreciation and credit the fixed asset.
- Loss on sale. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of assetaccount, and credit the fixed asset.
- Gain on sale.
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