Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 19 - No. 4)

Which of the following accounts would be debited when recording the sale of a non-current asset (e.g., furniture) for cash at a loss?

Cash

Furniture

Loss on Sale of Asset

Gain on Sale of Asset

Explanation

If the asset is sold for less than its book value (resulting in a loss), the debit would be to cash and the difference between the asset's book value and the sale price will be debited to the loss on sale of asset.

Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 19 - No. 4)

Explanation

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