CUET Preparation Today
State the accounting treatment of grant received by a Charitable Hospital: |
Credited to Income & Expenditure Account Debited to Income & Expenditure Account Shown as Asset in Balance Sheet Shown as Liability in Balance Sheet |
Credited to Income & Expenditure Account |
The correct answer is Option (1) - Credited to Income & Expenditure Account. Grant received is a revenue income so it is credited to the income and expenditure account. |
