When a fixed asset is disposed off, the accounting entries to write off the asset are Debit?

A. Profit and loss account; credit asset disposal account
B. Asset disposal account; credit profit and loss account
C. Asset disposal account, credit asset account
D. Profit and loss account; credit provision for depreciation account

Correct Answer: Option C

C. Asset disposal account, credit asset account

Explanation

How to record the disposal of assets

• No proceeds, fully depreciated. Debit all accumulated depreciation and credit the fixed asset.
• Loss on sale. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.
• Gain on sale.