Concept:A credit entry in an asset account such as plant and machinery shows a decrease in the value or book balance of that asset.
Explanation:An asset account normally has a debit balance because assets increase on the debit side.
When plant and machinery is purchased, the plant and machinery account is debited.
Therefore, any credit entry in this account can only represent a reduction of the asset.
The most common transaction that reduces plant and machinery is its sale.
Maintenance is a revenue expense and is not credited to the asset account.
Appreciation increases the value and would be recorded as a debit, not a credit, in the asset account.
Thus, crediting the plant and machinery account indicates the sale of the asset.
Answer:B. sale of plant and machinery