Loss on sale of old furniture and fitting is debited to__________.

Depreciation A/c

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Profit and loss a/c

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Trading A/c

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Furniture and fitting A/c

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Solution

The correct option is C Profit and loss a/c
Loss on sale of furniture is an indirect expense/loss to the firm, accordingly this has to be debited to Profit & Loss Account. Below is the journal entry passed for such case:

Profit & Loss A/c Dr. (with the amount of loss)
Cash/Bank A/c Dr. (with the amount of sale value)
To Asset A/c (with the book value of the asset)

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Similar questions

Q. The loss on the sale of old furniture is debited to ________.

Following is the trial balance of J Subramanium on 31st March, 2016. Prepare the trading and profit and loss account for the year ended 31st March, 2016.

Trial Balance
as on 31st March, 2016
$\begin{matrix} Name of Account & Debit (Rs.) & Credit (Rs.) Capital A/c & 30, 000 Stock A/C (1st April, 2015) & 6, 000 Cash at Bank & 3, 000 Cash in Hand & 1, 320 Machinery A/c & 18, 000 Furniture and Fittings A/c & 4, 080 Purchases A/c & 45, 000 Wages A/c & 30, 000 Fuel and Power A/c & 9, 000 Factory Lighting A/c & 600 Salaries A/c & 21, 000 Discount Allowed A/c & 1, 500 Discount Received A/c & 900 Advertising A/c & 15, 000 Sundry Office Expenses A/c & 12, 000 Sales A/c & 1, 50, 000 Sundry Debtors & 25, 500 Sundry Creditors & 11, 100 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 92, 000 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 92, 000 - --------- - - --------- - \end{matrix}$

Closing stock was valued at Rs. 8,100

Q. All except _________ are shown on debit side of trading and profit and loss a/c.

Q. Sonam keeps his books on single entry and provides you with the following information:

	31-12-2017	31-12-2018
	₹	₹
Furniture and Fitting	50,000	60,000
Stock	30,000	10,000
Sundry Debtors	60,000	70,000
Sundry Creditors	20,000	NIL
Prepaid Expenses	NIL	2,000
Outstanding Expenses	6,000	10,000
Cash in hand	11,000	3,000
Receipts and Payments in 2018:
Receipts from Debtors		2,10,000
Paid to Creditors		1,00,000
Cartage		20,000
Drawings		1,20,000
Sundry Expenses		1,60,000
Furniture Purchased for Cash		10,000

Prepare Trading and Profit & Loss Account for the year ended 31 December, 2018 after providing for bad debts at 10%.
There was a considerable amount of Cash Sales.

From the following Trial Balance, prepare a Trading and Profit Loss Account for the year ended 31st March 2012 and a Balance Sheet as on that date: The following adjustments are to be made:

1. Stock on 31-3-2012 was Rs 3,250.

2. Depreciate Building @ 5%, Furniture @10%and Scooter @20%.

3. One-third of the commission received is in respect of work to be done next year.

Q. From the following Trial Balance 30th June, 2012 and prepare Trading and Profit & Loss A/c and Balance Sheet:

Adjustments :

1. Sales include sale of Furniture on 30th June, 2012 at actual sale price of Rs 750. The Book value of furniture sold on that date was Rs 1,000.

2. Rs 2,500 paid to Ajay against our acceptance were debited by mistake to Ajay's A/c and from there it was included in the list of Sundry Debtors.

3. Depreciate furniture by 10% p.a. and Dead Stock by 30% p.a.

$\begin{matrix} Particulars & Amount & Amount Cr.(Rs) & Dr.(Rs) Furniture & 640 Scooter~ & 6, 250 Building & 7, 500 Capital & 12, 500 Bad Debts & 125 Provision for Bad Debts & 200 Creditors & Debtors & 3, 800 & 2, 500 Opening Stock & 3, 460 Purchases & Sales & 5, 475 & 15, 450 Bank overdraft & 2, 850 Returns & 200 & 125 Advertising & 450 interest & 118 Commission & 375 Cash & 650 Taxes and Insurances & 1, 250 General Expenses & 782 Salaries & 3, 300 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 34, 000 - ------ - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 34, 000 - ------ - \end{matrix}$

From the following Trial Balance 30th June, 2012 and prepare Trading and Profit & Loss A/c and Balance Sheet :

$\begin{matrix} Particulars & (Rs) & Particulars & (Rs) Purchases & 2, 10, 000 & Sales 3, 60, 000 Wages and Salaries & 16, 200 & Bills Payable & 2, 500 Repairs and Renewals & 2, 100 & Capital & 2, 00, 000 Freight on Purchases & 4, 500 & Returns & 2, 000 Furniture & 6, 000 & Mortgage and Interest to date & 10, 750 Dead Stock & 8, 000 & Bad Debts Recovered & 1, 650 Returns & 5, 200 & Interest on Govt. Bonds & 500 Bank balance & 7, 300 & General Reserve & 6, 800 Sundry Debtors & 75, 000 & Sundry Creditors & 24, 000 Advertisement Expenses & 10, 000 & Outstanding Salaries & 4, 400 Unexpired Insurance & 500 Miscellaneous Expenses & 2, 570 Freehold Premises & 1, 28, 100 Patent Rights & 20, 000 Delivery Van & 50, 000 Audit fees & 4, 000 Agent's Commission & 5, 780 Insurance & 2, 000 Drawings & 8, 400 10 % Govt. Bonds (Purchased on Oct. 1, 2011) & 10, 000 Mortgage Interest & 750 Stock on 30th June, 2012 & 36, 200 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 6, 12, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 6, 12, 000 - -------- - \end{matrix}$

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