The book value of asset is Rs. 12,000. The asset is sold for Rs. 15,000. Which of the following is correct?

Asset Account: Debit 15,000

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Cash Account: Debit 12,000

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Profit and Loss Account: Debit 3,000

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None of these

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Solution

The correct option is C
Profit and Loss Account: Debit 3,000

The correct entry would be:

Cash A/c Dr. 15,000

To Profit and Loss A/c 3,000

To Asset a/c 12,000

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Cash A/c Dr.	15,000
To Profit and Loss A/c	3,000
To Asset a/c	12,000

The book value of asset is Rs. 12,000. The asset is sold for Rs. 15,000. Which of the following is correct?

The correct option is C Profit and Loss Account: Debit 3,000 The correct entry would be: Cash A/c Dr. 15,000 To Profit and Loss A/c 3,000 To Asset a/c 12,000

The correct option is C
Profit and Loss Account: Debit 3,000

The correct entry would be:

Cash A/c Dr. 15,000

To Profit and Loss A/c 3,000

To Asset a/c 12,000