Which of the following accounts is debited when a delivery van is sold for cash?
Sales account
Delivery van account
Cash account
Profit and loss accounts
Correct answer is C
if there was a Loss on sale, we Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.
if there was a Gain on sale. Debit cash for the amount received, debit all accumulated depreciation, credit the fixed asset, and credit the gain on sale of asset account.
Cash is received and expected to be debited going by the principles of double entry.