Question

___________ is designed to provide a complete and clear view of all the transactions involved in the sale of asset under one account head.

• A. Asset sale A/c
• B. Asset Clear A/c
• C. Asset Disposal A/c
• D. None

Answer 1

Answer: (C)

Asset Disposal A/c

Asset Disposal A/c.

Asset Disposal A/c is designed to provide a complete and clear view of all the transaction involved in gthe sale of asset unfer one acount head. The original cost of asset being sold is debited to the asset disposal account and accumulated depreciation amount appearing in provision for depreciation account relating to that asset till the date of disposal is credited to the asset disposal account. The net amount realised from the sale of the asset is also crerdited to this account. The balance of asset disposal account shows profit or loss which is transferred to profit and loss account. The advantage of this method is that it gives full picture of all the transactions related to asset disposal at one place.