The proprietor of the stationery shop has sold one of his laptops to his employee. Identify how this income will be shown in financial statements.

[0.88 marks]

Shwn as revenue from operations in income statement

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Added to share capital in balance sheet

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Added to non-current assets

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Shown as other income in income statement

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Solution

The correct option is D Shown as other income in income statement
The sale of a laptop is considered as a sale of an asset and hence will be recorded in ‘other income’ in income statement.

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The proprietor of the stationery shop has sold one of his laptops to his employee. Identify how this income will be shown in financial statements. [0.88 marks]

The correct option is D Shown as other income in income statementThe sale of a laptop is considered as a sale of an asset and hence will be recorded in ‘other income’ in income statement.

The proprietor of the stationery shop has sold one of his laptops to his employee. Identify how this income will be shown in financial statements.

[0.88 marks]

The correct option is D Shown as other income in income statement
The sale of a laptop is considered as a sale of an asset and hence will be recorded in ‘other income’ in income statement.