📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    If there exists a specific sports fund, the expenses

    incurred in relation to sports activities will be taken to:
    A Income and Expenditure Account Correct Answer Incorrect Answer
    B Receipt and Payment Account Correct Answer Incorrect Answer
    C Sports fund Correct Answer Incorrect Answer
    D Capital fund Correct Answer Incorrect Answer

    Solution

    When a specific fund like a sports fund is created for a particular purpose, any related expenditure is deducted directly from the fund, not from the income and expenditure account. This ensures fund-based accounting, commonly followed by not-for-profit organizations.

    Practice Next
    More Accounts Questions
    ask-question