Accounting for IGCSE & O level - Accounting Procedures (Section 12 - No. 48)
What happens to the asset account when an asset is disposed of?
The asset account is debited.
The asset account is credited.
The asset account is increased.
The asset account remains the same.
Explanation
The asset account decreases to remove it from the financial records, because the asset account has a debit balance. When it is sold, the credit will decrease the asset.
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