The asset has an original cost of Rs. 10,000 and accumulated depreciation of Rs. 8,000. We want to completely eliminate it from the accounting records, so we credit the asset account for Rs. 10,000, debit the accumulated depreciation account for Rs. 8,000, and debit the _ by _.

Profit or loss account by Rs. 2000

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Disposal account by Rs. 2000

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Depreciation account by Rs. 2000

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Bank account by Rs. 2000

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Solution

The correct option is A
Profit or loss account by Rs. 2000

We want to completely eliminate it from the accounting records, so we credit the asset account for Rs. 10,000, debit the accumulated depreciation account for Rs. 8,000, and debit the profit or loss account for Rs. 2,000 (which is a loss).

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