Accounting for IGCSE & O level - Accounting Procedures (Section 24 - No. 12)

What accounts are affected by the disposal of an asset when there is a loss on disposal?

Asset account

Accumulated Depreciation

Cash

Loss on Disposal

Explanation

The asset account and accumulated depreciation are reduced. The Loss on Disposal account reflects the loss. Cash will be involved if the asset has any sale value.

Accounting for IGCSE & O level - Accounting Procedures (Section 24 - No. 12)

Explanation

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