An organisation received ₹85,000 for the building fund. Out of which 40% was capitaised. How much amount will be shown in Income and Expenditure A/c ?

₹51,000

The correct answer is option 2- ₹51,000.

Building fund = 85,000
40% is capitalised which means 60% is revenue that will be shown on the credit side of income and expenditure account.

Revenue Receipt = 85,000 x 60/100
                         = ₹51,000