Multiple choice

Which of the following transactions is ignored in the income and expenditure account?

  1. Depreciation of building

  2. Subscription due at the end of the year

  3. Profit on sale of assets

  4. Sale of assets

  5. General donations received

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

It is a capital transaction and thus, it is debited in the receipt and payment account only.