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


    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    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

    Explanation :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
    ask-question