Q. Rohit carrying on real estate business sold a piece of land for Rs.4,00,00,000 (cost Rs.3,50,00,000) then the type of receipt is nature and profit on sale is
A. Revenue & transferred to P & L a/c
B. Capital & transferred to capital reserve
C. Capital & transferred to P & L a/c
D. Revenue & transferred to general reserve
Answer: Revenue & transferred to P & L a/c
