Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Cash received on sale of an asset by a Non Profit Organisation is reflected into which of the following account?

Options:

Cash Book

Asset Account

Both of the above

None of the above.

Correct Answer:

Both of the above

Explanation:

Two accounts i.e. cash account as well as assets account will be affected by this entry. The journal entry will be :
Cash A/c Dr
   To Asset A/c
(Cash received against sale of assets)