What is the double entry for the removal of accumulated depreciation upon asset disposal?

When an asset is disposed of, the accumulated depreciation associated with that asset must be cleared from the books to accurately reflect the asset's net book value and avoid misstatements in the financial statements.

In this case, debiting the accumulated depreciation account effectively removes the accumulated amounts from the balance sheet. This is because accumulated depreciation is a contra asset account that offsets the value of the asset on the balance sheet. By debiting accumulated depreciation, you are reducing its balance to zero, which is necessary when the related asset is no longer in use.

Simultaneously, crediting the disposal account reflects the fact that the asset has been disposed of, thereby recording this transaction correctly in the accounting records. This entry ensures that both the asset's book value and the accumulated depreciation are removed from the financial statements, providing a clear picture of the company's financial position post-disposal.

The other options do not appropriately capture the necessary entries for removing accumulated depreciation when disposing of an asset, either through incorrect debits or credits to other accounts that do not relate directly to the disposal of the asset and its associated accumulated depreciation.