Where is the profit from the sale of an old plant recorded?

Show Answers

In the Trading AccountIn the Profit and Loss Appropriation AccountIn the Profit and Loss AccountIgnored as it is a non-operating itemNo entry is made

Explanation

The profit earned from selling an old plant is recorded in the Profit and Loss Account since it represents a gain related to operational activities. It is not part of the Trading Account or the Profit and Loss Appropriation Account, and it is not ignored.