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generic · CBSE Class 11 English medium · ACCOUNTANCY · Page 25question

7.9 Disposal of Asset

Chapter 7: Depreciation, Provisions and Reserves · ACCOUNTANCY · EN medium

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Disposal of asset can take place either (a) at the end of its useful life or (b) during its useful life (due to obsolescence or any other abnormal factor). If it is sold at the end of its useful life, the amount realised on account of the sale of asset as scrap should be credited to the asset account and the balance is transferred to profit and loss account. In this regard the following journal entries are recorded. . For sale of asset as scrap

📖 Accounts 7 (1) · Page 25

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Disposal of asset can take place either (a) at the end of its useful life or (b) during its useful life (due to obsolescence or any other abnormal factor). If it is sold at the end of its useful life, the amount realised on account of the sale of asset as scrap should be credited to the asset account and the balance is transferred to profit and loss account. In this regard the following journal entries are recorded. .

For sale of asset as scrap

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