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WAEC Accounting 2012 Objective — Question 42

Question 42 of 50 from the West African Examinations Council (WAEC) Accounting 2012 Objective paper, with the correct answer and a full explanation.

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The double entry to record the proceeds on disposal of assets is

  • A. debit Bank Account; credit Asset Disposal AccountCorrect
  • B. debit Asset Disposal Account; credit Bank Account
  • C. debit Provision for Depreciation Account; credit Asset Disposal Account
  • D. debit Asset Disposal Account; credit Provision for Depreciation Account

Explanation

When an asset is disposed, the money realised will be posted by debiting cash/bank account and crediting disposal of asset account.

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