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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 |
₹3,000 shown on debit side of Income and Expenditure A/c ₹3,000 shown on credit side of Income and Expenditure A/c ₹3,000 shown on assets side of Balance Sheet ₹3,000 shown on Liabilities side of Balance Sheet |
₹3,000 shown on credit side of Income and Expenditure A/c |
The correct answer is Option 2 - ₹3,000 shown on credit side of Income and Expenditure A/c. Receipts from charity show (₹12,000) - Expenses on charity show (₹9,000) Receipt are more than expense so it is credited to the income & expenditure account. |
