Which of the following accounts is debited when a delivery van is sold for cash?...
FINANCIAL
JAMB 2015
Which of the following accounts is debited when a delivery van is sold for cash?
- A. sales account
- B. delivery van account
- C. cash account
- D. profit and loss accounts
Correct Answer: C. cash account
Explanation
if there was a Loss on sale, we Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset. if there was a Gain on sale. Debit cash for the amount received, debit all accumulated depreciation, credit the fixed asset, and credit the gain on sale of asset account. Cash is received and expected to be debited going by the principles of double entry.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *