Where will be the sale of old newspaper for ₹2,000 by a Non Profit Organization recorded?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Credit side of income and expenditure account.
Sale of old newspapers is an income for the organisation hence it is to be recorded in income & expenditure account. Income and expenditure account records expenses on the debit side and income on the credit side. Thus, sale of newspapers is an income so it is recorded on the credit side of the respective account.