Amount received from the sale of furniture for Rs. 7000 (Book value Rs. 10,000). The amount to be shown in receipts and payments account will be :
Amount received from the sale of furniture for Rs. 7000 (Book value Rs. 10,000). The amount to be shown in receipts and payments account will be :
Solution
✅ Correct Option: 2
Receipts and Payments Account records actual cash transactions only. Therefore, the actual amount received on sale, Rs. 7,000, is shown on the receipts side. Book value and loss on sale are irrelevant to this account.
Note: This NPO-related question has been classified under Financial Statements / Nature-Structure as NPO accounting is not a listed subtopic.
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