The balance of Match Fund = ₹1,000
Sports expenses = ₹5,000
Sale of match tickets = ₹3,000.

How will it be shown in the Income and expenditure Account?

₹1,000 on Expenditure Side

The correct answer is option 2- ₹1,000 on Expenditure Side.

Match fund = 1,000
Add: Sale of match tickets = 3,000
                                          = (1,000 + 3,000)
                                          = 4,000
Less: Sports expenses = 5,000
                                     = (4,000 - 5,000)
                                      = (-1000)

As ₹1,000 is negative or expenses are more than income, so it is shown as expense on Expenditure side.