The book value of asset is Rs 5000. The asset is sold for Rs. 4000. Which of the following is correct?

Asset account: Credit 5,000

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Cash account: Debit 4,000

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Profit and loss account: Debit 1,000

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All of these

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Solution

The correct option is D
All of these

The correct entry would be

Cash A/c Dr. 4,000

Profit and Loss A/c Dr. 1,000

To Asset A/c 5,000

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Cash A/c Dr.	4,000
Profit and Loss A/c Dr.	1,000
To Asset A/c	5,000

The book value of asset is Rs 5000. The asset is sold for Rs. 4000. Which of the following is correct?

The correct option is D All of these The correct entry would be Cash A/c Dr. 4,000 Profit and Loss A/c Dr. 1,000 To Asset A/c 5,000

The correct option is D
All of these

The correct entry would be

Cash A/c Dr. 4,000

Profit and Loss A/c Dr. 1,000

To Asset A/c 5,000