Accounting 0452 · IGCSE · Accounting for depreciation and disposal of non-current assets

Accounting for depreciation and disposal of non-current assets — practice question

A trader disposed of one of his vehicles. What journal entry should be made to eliminate the accumulated depreciation on the vehicle that was sold?

  • ADebit disposal of motor vehicles, credit provision for depreciation of motor vehicles
  • BDebit income statement, credit disposal of motor vehicles
  • CDebit provision for depreciation of motor vehicles, credit motor vehicles
  • DDebit provision for depreciation of motor vehicles, credit disposal of motor vehicles

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