The Profit on Sale of an asset is debited to ________ Account.

Profit and Loss

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Reserve

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Asset

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Balance Sheet

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Asset
On sale of any asset, there must be some profit/loss as the amount realized on sale may be more or less compared to the written down value. If the sale proceed is more than the written down value, there will be a profit and if the sale proceed is less than the written down value, there will be a loss.

Profit on sale of asset is debited to asset and credited to profit & loss a/c.

Suggest Corrections

Similar questions

Q. Select the most appropriate answers from the alternatives given below and rewrite the sentence.

The Profit on sale of an asset is debited to __________ Account.
a) Profit and Loss
b) Reserve
c) Asset
d) Balance Sheet.

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.

Q. Profit on sale of Asset is __________ to Profit and loss A/c.

Q. Profit on sale of fixed asset is a/an .

Q. Loss on sale of asset is ___________ to profit and loss A/c.

Join BYJU'S Learning Program