The loss on the sale of old furniture is debited to ________.

Profit and Loss Account

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Furniture Account

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Trading Account

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Depreciation Account

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Solution

The correct option is A Profit and Loss Account
On sale of any old assets, if any profit or loss arises, this has to be debited to profit & loss account. Though it is not a business activity but due to usage of assets, the value gets depreciated. Depreciation is charged to profit & loss account. Same way, any loss arising on account of sale of old furniture should be debited to profit & loss account.

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