Question

Sold old computer having book value of Rs. 30,000 at a profit of Rs. 5,000 to jeevan

Answer 1

Answer:

Jeevan a/c Dr. 35,000

To Profit and loss a/c 5000

To computer a/c 30000

( being computer sold to jeevan)

Answer 2

Answer:

Journal entry

Cash A/c    Dr   35000

        To sale of old asset A/c    30000

         To Profit and loss A/c         5000

(being sold old computer )

Explanation:

cash A/c- real account , where cash comes in to the company therefore its debited

sale of old asset - real account , where computer goes out of the company therefore its crdited

Profit and loss A/c - nominal account , its a gain to the company therefore its credited

Note:

alternatively sales of old asset can also account as computer a/c .