why sale of old bats, etc treated as revenue income..
Since the journal entry will be sale of old bats etc. RS. 500 will be
Cash/Bank. ....a/c Dr. 500
To bats balls etc a/c 500
Dear student
sports materials get spoiled in very short period of time. Therefore, expenditure in these items are treated as revenue expenditure. similarly when these items are consumed,. any amount realised from sale of such item is treated as revenue income and is credited to income and expenditure account.
Regards
sports materials get spoiled in very short period of time. Therefore, expenditure in these items are treated as revenue expenditure. similarly when these items are consumed,. any amount realised from sale of such item is treated as revenue income and is credited to income and expenditure account.
Regards