When a fixed asset is sold, any profit on sale is credited to: MCQ with Answer and Explanation

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When a fixed asset is sold, any profit on sale is credited to:

A. Trading Account

B. Balance Sheet

C. Profit & Loss Account

D. Capital Account

Answer: Option C

Solution (By JKSSB Mock Tests)

Profit on sale of fixed asset is a revenue gain, shown in Profit & Loss Account.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Under the straight-line method of depreciation, the amount of depreciation is:

A. Constant every year

B. Decreases every year

C. Variable every year

D. Increases every year

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Correct Answer: Option A

Explanation:
Under the straight-line method, depreciation is calculated on the original cost of the asset, making the depreciation amount constant every year.

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Question #2

GST is a destination-based tax. This means:

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B. Tax accrues to the state where goods/services are consumed

C. Tax is retained by the centre

D. Tax accrues to the origin state

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Correct Answer: Option B

Explanation:
Under destination principle, the consuming state gets the SGST portion.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

Which error will cause a mismatch in trial balance?

A. Posting a correct amount on the wrong side of an account

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Correct Answer: Option A

Explanation:
Posting on the wrong side causes one side to be more/less, making totals unequal.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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