Capital income in i&e a/c

Hi,

Is it correct to show the income from "sale of old furniture" in "Income-Side" of I&E a/c.??

Because as we have learnt, I&E a/c records only incomes and expenditures of "Revenue-Nature"  .

A question in "Scanner- Inter_CMA" of chapter name: NPO's has recorded such transaction. But, is'nt it wrong?? And the amazing point is that their Balance-Sheet is also getting tallied. HOW??

Please explain whether we can post Capital Income or Expenditures also in I&E a/c or not.

 

Many Thanks....

Replies (2)

Hi,

As far is business is considered any kind of income can be reported under I&E accout.

Only fo the Income tax purpose, we differentiate income under various heads.

 

Thanks,

Suri

 

Mr kota

but the rule says only Revenue Items can go in I&E account, not any kind of income. And sale of old furniture is a Capital Income, so how could it be posted in I&E a/c

thank you for your reply.

 

 

 

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