Loss on sale of asset is ___________ to profit and loss A/c.

Debited

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Credited

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No Effect

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None

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Solution

The correct option is C Debited
Following are the journal entries in respect of sale of fixed assets :
1. Cash/ Bank A/c Dr.
To Asset A/c
(Being the asset sold)
2. Profit & Loss A/c Dr.
To Asset A/c
(Being the transfer of loss on sales).

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Loss on sale of asset is ___________ to profit and loss A/c.

The correct option is C DebitedFollowing are the journal entries in respect of sale of fixed assets :1. Cash/ Bank A/c Dr. To Asset A/c(Being the asset sold)2. Profit & Loss A/c Dr. To Asset A/c(Being the transfer of loss on sales).

The correct option is C Debited
Following are the journal entries in respect of sale of fixed assets :
1. Cash/ Bank A/c Dr.
To Asset A/c
(Being the asset sold)
2. Profit & Loss A/c Dr.
To Asset A/c
(Being the transfer of loss on sales).