Question

Rohit carrying on real estate business sold a piece of land for Rs.4,00,00,000 (cost Rs.3,50,00,000) then the type of receipt is ______ nature and profit on sale is _______ a) Capital & transferred to capital reserve b) Revenue & transferred to P & L a/c c) Capital & transferred to P & L a/c d) Revenue & transferred to general reserve

Answer 1

Answer:

Revenue & transferred to P & L a/c

Explanation:

Rohit carrying on real estate business sold a piece of land for Rs.4,00,00,000 (cost Rs.3,50,00,000) then the type of receipt Revenue is nature and profit on sale is transferred to P & L a/c a) Capital & transferred to capital reserve b) Revenue & transferred to P & L a/c c) Capital & transferred to P & L a/c d) Revenue & transferred to general reserve