Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Discover the answers you need from a community of experts ready to help you with their knowledge and experience in various fields. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.
Sagot :
When there is the liquidation of fixed assets that are of use-value with cash collection, the accounts recorded are as follows C. Increase income, reduce costs.
- The income increases because of the cash collection from the liquidation. The fixed assets' accounts are credited (reduced) with the costs.
- Then debit the accumulated depreciation account with the amount of its balance. A new account called the "Sale of Fixed Assets" account opens.
- The "Sale of Fixed Assets" account is debited with the costs and credited with the accumulated depreciation and the cash proceeds from the disposal.
Thus, the difference is an increase in income (profit) if the credit side exceeds the debit side of the "Sale of Fixed Assets" account.
Learn more: https://brainly.com/question/21143131
We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.