Question

Will sale of investment be included in the income and expenditure account?

Answer 1

Dear Student,
Normally Sale of investment, being sale of asset is not recorded in the Income and Expenditure A/c. Adjustment of the same is made in Balance Sheet. Profit/Loss which arises from such sale is recorded in Income and Expenditure account.
But in some certain cases, where firm deals in investment business,and sale of investment is recurring in nature. The same will then be recorded in Income& expenditure A/c.

Regards,