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State with reason how the following item will be treated while preparing the 'Income and Expenditure Account' and 'Balance Sheet' of a Not-for-Profit Organisation: Sale of used sports material - Accountancy

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Question

State with reason how the following item will be treated while preparing the 'Income and Expenditure Account' and 'Balance Sheet' of a Not-for-Profit Organisation:

Sale of used sports material

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Solution

Sale of sports materials is the regular feature with any Sports Club. It is usually shown as an income in the Income and Expenditure Account.

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2021-2022 (March) Term 2 - Outside Delhi Set 1
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