Accounting for IGCSE & O level - Accounting Procedures (Section 17 - No. 33)

What should happen to the accumulated depreciation account when a non-current asset is disposed of?
The account balance should be increased.
The account balance should be decreased to zero.
The account balance should be moved to a suspense account.
The account balance should not be affected.

Explanation

The accumulated depreciation account should be reduced to zero as the asset is no longer in use.

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