O-LevelAccountingAccounting procedures7707/11 · May/June 2012 · Q181 Mark

How is the loss on the sale of a non-current asset recorded?

Adebit: disposal account, credit: income statement

Bdebit: income statement, credit: disposal account

Cdebit: income statement, credit: non-current asset account

Ddebit: non-current asset account, credit: income statement

✓ Correct answer

B: debit: income statement, credit: disposal account

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2012 Paper 1 Variant 1, question 18.

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