Cost Accountant (Student) (92 Points)
23 June 2015Hi,
Is it correct to show the income from "sale of old furniture" in "Income-Side" of I&E a/c.??
Because as we have learnt, I&E a/c records only incomes and expenditures of "Revenue-Nature" .
A question in "Scanner- Inter_CMA" of chapter name: NPO's has recorded such transaction. But, is'nt it wrong?? And the amazing point is that their Balance-Sheet is also getting tallied. HOW??
Please explain whether we can post Capital Income or Expenditures also in I&E a/c or not.
Many Thanks....
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 25 June 2015
Hi,
As far is business is considered any kind of income can be reported under I&E accout.
Only fo the Income tax purpose, we differentiate income under various heads.
Thanks,
Suri
Cost Accountant
(Student)
(92 Points)
Replied 25 June 2015
Mr kota
but the rule says only Revenue Items can go in I&E account, not any kind of income. And sale of old furniture is a Capital Income, so how could it be posted in I&E a/c
thank you for your reply.
CAclubindia
