How are the sale of fixed assets, sale of sports materials, and sale of newspapers treated when recorded in the Income and Expenditure A/c of an organisation?

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Solution

$1.$ Sale of fixed assets is a Capital Receipt. Any gain or loss on sale of asset will be shown in the Income and Expenditure Account.
$2.$ Sale of sports materials is receipt of recurring nature. It is an income item and shown in the income side of the Income and Expenditure Account.
$3.$ Sale of old newspapers is a regular feature of an organisation. It is shown in the income side of Income and Expenditure Account.

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Similar questions

Show the accounting treatment of the following items by a Not-for-Profit organisation.

(i) Annual Subscription

(ii) Specific Donation

(iii) Sale of Fixed Assets

(iv) Sale of Old Periodicals

(v) Sale of Sports Materials

(vi) Life Membership Fee

How will you treat 'sale of used Sports Materials' in an NPO?

How will you treat sale of old newspapers while preparing the final accounts of a non-profit organisation?

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