Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounts for Non Profit Organsiation

Question:

Select the item that does not appear in the receipt and payment account of a non-for-profit organisation.

Options:

Sale of machinery for cash

Subscription received

Loss on sale of furniture

Payment to creditors

Correct Answer:

Loss on sale of furniture

Explanation:

The correct answer is option 3- Loss on sale of furniture.

Loss on the sale of furniture is shown in the debit side of the income and expenditure account. On the receipt side only the sale value of machinery. Loss is later calculated and shown in the income and expenditure account.