How the following item will be treated in financial statements of Not-for-Profit Organisation?
Receipts from charity show: ₹12,000
Expenses on charity show: ₹9,000
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹3,000 shown on credit side of Income and Expenditure A/c
A charity show is a revenue event of the organisation, so its receipts and expenses are set off and only the net result goes to the Income and Expenditure Account.
Net income from charity show = ₹12,000 − ₹9,000 = ₹3,000
A net income is shown on the credit (income) side of the Income and Expenditure Account (a net loss would go to the debit side). Nothing is carried to the Balance Sheet, as no fund is created.
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):
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