Question

A Fixed Asset acquired for $2,000 and accumulated depreciation at the beginning of the year is $1,250. The asset was sold on 31st July and depreciation till 31st July is $250. The asset was sold for $1,500. Which of the following is the gain or loss on the sale of Fixed Asset?

Answer 1

Answer:

Our Explanation of Debits and Credits describes the reasons why various accounts are debited and/or credited. For the examples we provide the logic, use T-accounts for a clearer understanding, and the appropriate general journal entries.

Part 1Introduction to Debits and Credits, What's an "Account"?, Double-Entry Accounting, Debits & Credits

Part 2T–accounts, Journal Entries, When Cash Is Debited and Credited

Part 3Normal Balances, Revenues & Gains are Usually Credited, Expenses & Losses are Usually Debited, Permanent & Temporary Accounts

Part 4Bank's Debits & Credits, Bank's Balance Sheet, Recap