Jeng Limited disposed a fixed asset in 1999 for N2,000.

The asset was purchased in 1996 at a cost of N10,000 and has been depreciated at the rate of 20% per annum using the straight line method.

What is the correct entry for the sale of the asset in the Asset Account and Disposal of Asset Account? Debit

• A Fixed Asset Accunt N4,000, credit Disposal of Assets Account N4,000
• B Disposal of Asset Account N4,000, credit fixed Access Account N4,000
• C Disposal of Asset Account N2,000, credit Fixed Asset account N2,000
• D Fixed Asset Account N2,000, credit Disposal of Assets Account 2000