Multiple choice

An asset of Rs. 10,000 is sold for Rs. 8,000 to Vijay. What is the journal entry for this?

  1. Dr. Vijay Rs. 10,000 & Cr. Asset a/c Rs. 10,000

  2. Dr. Vijay Rs. 10,000, Cr. Asset a/c 8,000 & Cr. Loss on Sale of Asset Rs. 2,000

  3. Dr. Vijay Rs. 8,000, Dr. Loss on Sale of Asset Rs. 2,000 & Cr. Asset a/c 10,000

  4. Dr. Vijay Rs. 8,000, Cr. Loss on Sale of Asset Rs. 2,000 & Cr. Asset a/c Rs. 6,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Asset Cost Value is RS. 10,000 & Sale Value is Rs. 8,000 so the value of loss is Rs. 2,000 (10,000 - 8,000).

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