What is the treatment of receipt from charity show and expenses on charity show?
A. This is a specific fund and separate account should be maintained.
B. Separate account should be maintained and excess of receipt over expenses shown in Balance Sheet
C. Receipt in Receipt side. Expense in Expenditure side. Balance in specific Fund account.
D. Receipt from charity show on credit side and expenses should be deducted from receipts on credit side of Income and Expenditure Account.
E. There is no specific Account for this.
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → D and E only
A charity show is a normal activity of the organisation for which no specific fund exists. Its receipts are revenue, its expenses are deducted from them, and the net amount is shown on the credit (income) side of the Income and Expenditure Account.
(A) This is a specific fund and separate account should be maintained. — False. No fund is created for a charity show.
(B) Separate account should be maintained and excess of receipt over expenses shown in Balance Sheet — False. The net receipt is revenue income, so it goes to the Income and Expenditure Account, not to the Balance Sheet.
(C) Receipt in Receipt side. Expense in Expenditure side. Balance in specific Fund account. — False. There is no specific fund to carry a balance to.
(D) Receipt from charity show on credit side and expenses should be deducted from receipts on credit side of Income and Expenditure Account. — True. This is the treatment the book gives.
(E) There is no specific Account for this. — True. The items pass through the Income and Expenditure Account only.
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):
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