When an asset is sold, the entries for the accumulated depreciation are; debit
-
A.
assets disposal account; credit provision for depreciation account -
B.
provision for depreciation account; credit asset disposal account -
C.
fixed asset account; credit asset disposal account -
D.
asset disposal account; credit fixed asset account
Correct Answer: Option B
Explanation
Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.