Question

How to treat sale of old news papers in final accounts

Answer 1

Answer:

The sale proceeds of old newspapers are treated as capital receipts and thus are credited to the respective fixed assets but , the profit on sale of old newspapers must be shown in the income side of Income & Expenditure A/c and loss on sale of old newspapers must be shown in the expenditures side of Income & Expenditure A/c.

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Answer 2

Answer:

It is to be shown in the credit side of the profit and loss account.