Question

What is meant by asset disposal account?

Answer 1

Heya mate✌

Asset Disposal Account means that the cost of the asset and also the provision for depreciation is transferred to the account at the time of its sale(disposal).The sale proceeds are credited to the account and gain(profit) or loss on sale on its disposal is determined.


hope it helps..

Answer 2

Cost of asset and provision of depreciation is transferred to disposal account due to loss of asset.