The balance of asset disposal account is transferred to __________.

Trading account

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Profit and loss account

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Balance sheet

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None of the above

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Solution

The correct option is A Profit and loss account
Here the B option is right answer.
When the asset is sold at the end of its useful life, the sale proceeds should be credited the asset account. The profit or loss on sale or disposal of the assets is transferred to the P&L a/c.

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Similar questions

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

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Q. Which are the accounts which are not balanced but transferred to Trading A/c or Profit &loss A/c?

Q. To which account is accumulated balances of profit and loss account and general reserve account are transferred at the time of admission of a partner?

Q. A gross profit is transferred to the ____________ side of the profit and loss account.

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The balance of asset disposal account is transferred to __________.

The correct option is A Profit and loss accountHere the B option is right answer.When the asset is sold at the end of its useful life, the sale proceeds should be credited the asset account. The profit or loss on sale or disposal of the assets is transferred to the P&L a/c.

The correct option is A Profit and loss account
Here the B option is right answer.
When the asset is sold at the end of its useful life, the sale proceeds should be credited the asset account. The profit or loss on sale or disposal of the assets is transferred to the P&L a/c.