Question

Write the word/term/pharse which can substitute each of the following statement :

Excess of selling price of a Fixed asset over its written down Value.

Answer 1

Excess of selling price of a Fixed asset over its written down Value- Profit on sale of asset

Explanation:
When an asset is sold, the value realised from the sale of the asset is compared with the written down value of the asset. If the sale value of the asset is greater than its written down value, it is treated as profit on sale of the asset and credited to Profit & Loss A/c. On the other hand, if the sale value is less than the written down value, the difference is treated as loss on sale of the fixed asset and is debited to the Profit & Loss A/c.