Accounting for IGCSE & O level - Accounting Procedures (Section 14 - No. 29)
What is the correct treatment for the disposal of a fully depreciated asset?
Debit the asset account and credit accumulated depreciation
Debit accumulated depreciation and credit the asset account.
Debit depreciation expense and credit accumulated depreciation
Debit cash and credit depreciation expense
Explanation
When an asset is disposed of, the accumulated depreciation account is debited, and the asset account is credited.
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