The amount realised on account of the sale of asset as scrap should be.................to the asset account and the balance is transferred to.................

Credited, Profit and loss account

The correct answer is option 2- Credited, Profit and loss account.

Disposal of asset can take place either (a) at the end of its useful life or (b) during its useful life (due to obsolescence or any other abnormal factor). If it is sold at the end of its useful life, the amount realised on account of the sale of asset as scrap should be credited to the asset account and the balance is transferred to profit and loss account.