BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Profit on sale of furniture is an income and it should taken as Income in the income & expenditure account.

Detailed explanation-2: -Profit on sale of Furniture account is the indirect income or gain for a business since profit is earned on the sale of furniture and hence, it is classified as a nominal account.

Detailed explanation-3: -AI Recommended Answer: In this case, sale of furniture is a revenue expenditure.

Detailed explanation-4: -In case of sale of fixed assets by a non profit organisation the gain or loss if any will be recorded in the income and expenditure account, the cash proceeds will be recorded in receipts and payments account and the cost of the amount is deducted from the respective asset in the balance sheet. Was this answer helpful?

Detailed explanation-5: -Reasonv Purchasing furniture comes under capital expenditure; sale of furniture comes under capital receipt.