Loss on sale of machinery will be ________.

debited on Machinery A/c

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credited to Machinery A/c

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credited to Profit and Loss A/c

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None of them

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Solution

The correct option is C credited to Machinery A/c
Loss on sale. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the Machinery A/c.

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