Profit on sale of Asset is __________ to Profit and loss A/c.

Debited

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No Effect

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Credited

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None

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Solution

The correct option is C Credited
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. Asset A/c Dr.
To Profit & Loss A/c
(Being the transfer of profit on sale).

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Profit on sale of Asset is __________ to Profit and loss A/c.

The correct option is C CreditedFollowing 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. Asset A/c Dr. To Profit & Loss A/c(Being the transfer of profit on sale).

The correct option is C Credited
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. Asset A/c Dr.
To Profit & Loss A/c
(Being the transfer of profit on sale).