In rules of debit and credit
Q7, what's the entry for machinery discarded... Discarded means thrown out... It doesn't mean sold for cash... So we cannot use bank ac.. will the entry be
P/L ac.....Dr
To machinery ac?

Question

In rules of debit and credit
Q7, what's the entry for machinery discarded Discarded means thrown
out It doesn't mean sold for cash So we cannot use bank ac will the
entry be
P/L ac Dr
To machinery ac?

Shruti Mishra · Accepted Answer

Solution :-

When an asset is discarded, there is no cash inflow On that date,
book value of asset will be recorded as a loss
Journal Entry will be:-

S No / Date
Particulars
L F
Debit
Credit

1)
Accumulated Depreciation A/c Dr

xxx

Profit and Loss A/c (Loss) Dr

xxx

To Asset A/c

xxx

(Being asset discarded off )

S.No. / Date	Particulars	L.F	Debit	Credit
1)	Accumulated Depreciation A/c Dr.		xxx
	Profit and Loss A/c (Loss) Dr.		xxx
	To Asset A/c			xxx
	(Being asset discarded off.)

In rules of debit and credit Q7, what's the entry for machinery discarded... Discarded means thrown out... It doesn't mean sold for cash... So we cannot use bank ac.. will the entry be P/L ac.....Dr To machinery ac?

In rules of debit and credit
Q7, what's the entry for machinery discarded... Discarded means thrown out... It doesn't mean sold for cash... So we cannot use bank ac.. will the entry be
P/L ac.....Dr
To machinery ac?