Question

When the assets of the firm are sold account is credited?

Answer 1

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When the assets of the firm are sold ASSETS A/C are credited.

JOURNAL ENTRY ⬇️⬇️⬇️

CASH A/C_______________DR

____TO ASSETS A/C

Answer 2

When the assets of the firm are sold, ____ account is credited?

The correct answer is : Profit and loss account.

Explanation :

When an assets of the are sold, it is credited in the profit and loss account.

A profit and loss account is an account that shows the profit and loss incurred in a business. Profit and Loss Account is a statement of the financial dealings of a firm that provides a summary of the revenues, costs and expenses incurred during a specified period.

Selling the assets of any firm comes under the financial dealings of that firm. If any asset of the firm is sold at profit or loss then its details are recorded in profit and loss account.

The details of other financial activities of the firm are also recorded in the profit and loss account.

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