WAEC Accounting 2014 Objective — Question 24
Question 24 of 50 from the West African Examinations Council (WAEC) Accounting 2014 Objective paper, with the correct answer and a full explanation.
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When an asset is sold, the entries for the accumulated depreciation are; debit
- A. Asset Disposal Account; credit Provision for Depreciation Account
- B. Provision for Depreciation Account; credit Asset Disposal AccountCorrect
- C. Fixed Asset Account; credit Asset Disposal Account
- D. Asset Disposal Account; credit Fixed Asset Account
Explanation
When assets are disposed, the accounting entry for accumulated depreciation is: Dr Provision for Depreciation Account, Cr Asset Disposal Account.
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