Forums
Back
Depreciation
Accountancy
So can you say me logic of this journal entry that is why machinery account is debited to machinery disposal account. So one assumption is that, asset is going out so in journal entry we credit machinery account but my doubt is that,Is machinery disposal account is asset account? In case If we debit it would likely be asset or expense right or is it liability that is decreased? Please justify me
Answers (4)
But i have taken profit on debit side and money received from bank on sale on cr side of machinery account.Here in study mat it is set off value. So clearly my doubt is a) ledger account of machinery disposal account i.e., why machinery and profit is debited? b)Nature of machinery disposal account
Your Reply