The amount received from the sale of furniture for ₹7,000 (Book value ₹10,000). The amount to be shown in the receipts and payments account will be:

₹7,000 on the receipts side

The correct answer is option 2- ₹7,000 on the receipts side.

The Receipts and Payments Account records cash inflows and outflows. The amount actually received from the sale of furniture (₹7,000) is the cash inflow, so it will be shown on the receipts side. The book value of the furniture (₹10,000) and the difference (₹3,000 loss) will not affect the receipts and payments account directly. However, the loss will be considered in the Income and Expenditure Account.

Thus, the amount shown on the receipts side will be ₹7,000, which is the actual cash received.