When a club sells old furniture, what enters the income and expenditure account?

1. Furniture is a fixed asset, so its sale proceeds are a capital receipt and do not belong in the income and expenditure account. 2. What does belong there is the gain or loss arising on the sale, which is a revenue item of the year. 3. In the textbook's illustration, furniture with a book value of Rs 4,400 sold for Rs 5,000 gives a profit of Rs 600, and only that Rs 600 is credited. 4. Another illustration shows the reverse case, where furniture of Rs 25,000 sold for Rs 22,500 produces a loss of Rs 2,500 on the debit side. 5. Sale of old sports materials and old newspapers is different again: those are revenue receipts in full. _Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 2 "Accounts of Not-for-Profit Organisation", §2.5.1 and Illustration 7_