The double entry to record the proceeds on disposal of assets in debit
-
A.
bank account; credit asset disposal account -
B.
asset disposal account; credit bank account -
C.
provision for depreciation account; credit asset disposal account -
D.
asset disposal account; credit provision for depreciation account
Correct Answer: Option C
Explanation
Debit provision for Depreciation account (to remove the equipment’s up-to-date accumulated depreciation), Credit the account Equipment (asset disposal account) to remove the equipment’s cost.