Which of the following options given below are correct?
A. If there appears a sports fund, the expenses incurred on sports activities will be shown on the debit side of Income and Expenditure Account.
B. Donations for specific purposes are always capitalized.
C. Scholarships granted to students out of funds provided by Government will be debited to Income and Expenditure Account.
D. Opening balance sheet is prepared when the opening balance of capital fund is not given.
E. If donations received is to be utilised to achieve specified purpose, it is called Specific Donation.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → B, D, E only
A. If there appears a sports fund, the expenses incurred on sports activities will be shown on the debit side of Income and Expenditure Account. Incorrect. Where a special fund exists, expenses on its purpose are deducted from the fund in the Balance Sheet.
B. Donations for specific purposes are always capitalized. Correct. A specific donation is shown on the liabilities side, whatever its size.
C. Scholarships granted to students out of funds provided by Government will be debited to Income and Expenditure Account. Incorrect. They are paid out of a specific fund and are deducted from that fund.
D. Opening balance sheet is prepared when the opening balance of capital fund is not given. Correct. The capital fund is then found as the excess of opening assets over opening liabilities.
E. If donations received is to be utilised to achieve specified purpose, it is called Specific Donation. Correct. This is the meaning of a specific donation.
Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.
NCERT (Pre-rationalised edition):
NCERT (Pre-rationalised edition):
NCERT (Pre-rationalised edition): |
