Question : Amount received from the sale of old sports equipments will be shown in:

Option 1: Debit of Income and Expenditure A/c

Option 2: Debit of Receipts and Payments A/c

Option 3: Liabilities side of Balance Sheet

Option 4: Asset side of Balance Sheet


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Debit of Receipts and Payments A/c


Solution : Receipts and Payments Account records the sale and purchase of items. Amount received from the sale of old sports equipments will be shown in the debit side of Receipts and Payments Account. Hence, the correct option is 2.

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