Sale of old news papers
Loss on the sale of an asset
Payment of honorarium
Amount of sale of furniture
Answer is Right!
Answer is Wrong!
The correct answer is D. Amount of sale of furniture.
An income and expenditure account is a financial statement that shows the income and expenses of a club for a specific period of time. It is used to track the club’s financial performance and to make decisions about its future.
The income and expenditure account includes the following items:
- Income: This includes all of the money that the club receives, such as membership fees, donations, and fundraising activities.
- Expenses: This includes all of the money that the club spends, such as rent, utilities, and salaries.
- Surplus or deficit: This is the difference between the club’s income and expenses. If the club’s income is greater than its expenses, it has a surplus. If the club’s expenses are greater than its income, it has a deficit.
The amount of sale of furniture is not included in the income and expenditure account because it is a capital gain. A capital gain is the profit that a person makes when they sell an asset that has increased in value. Capital gains are not taxed in the same way as income.
The other options are all included in the income and expenditure account because they are all income or expenses.