Question

How will be the admission fees treated while preparing the final accounts of a nofor-profit
sanisation?
Credited to income and expenditure account
shown on asset side of balance sheet
debited to income and expenditure account
added to Capital fund in the balance sheet​

Answer 1

Answer:

A cost can be either an asset or an expense. If the item acquired has already been used in the process of earning revenue, its cost represents an expense. If the item will be used in the future to generate revenue, its cost represents an asset.