Which of the following is to be recorded in a profit and loss account?

Purchase of fixed asset

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Capital Expenditure incurred on fixed asset

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Profit on sale of fixed asset

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Sale of fixed asset

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Solution

The correct option is C
Profit on sale of fixed asset

Profit on sale of fixed asset is to be recorded in a profit and loss account.

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Similar questions

Q. Expenditure incurred on purchase of fixed asset is ______.

Profit on sale of fixed assets is __________.

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

Q. Which of the following account will be credited for profit on sale of fixed assets?

Assuming that the Debt-Equity Ratio is 2 : I, state, giving reasons, which of the following transactions would (I) Increase; (ii) Decrease; (ii.) Not alter the Debt-Equity Ratio :

(i) Issue of new shares (Preference/Equity) for Cash.

(ii) Issue of new shares (Preference/Equity) against purchase of fixed asset.

(iii) Buy-back of its own shares by a Company.

(iv) Issue of Debentures for Cash.

(v) Issue of Debentures against purchase of fixed asset.

(vi) Repayment of Long-term Borrowings.

(vii) Conversion of Debentures into Equity Shares/Preference Shares.

(viii) Sale of a fixed asset at par.

(ix) Sale of a fixed asset at profit.

(x) Sale of a fixed asset at loss.

(xi) Purchase of a fixed asset on a credit of 2 months.

(xii) Purchase of a fixed asset on long-term deferred payment basis.

(xiii) Issue of Bonus Shares.

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Which of the following is to be recorded in a profit and loss account?

The correct option is C Profit on sale of fixed asset Profit on sale of fixed asset is to be recorded in a profit and loss account.

The correct option is C
Profit on sale of fixed asset

Profit on sale of fixed asset is to be recorded in a profit and loss account.