Accountancy Part AAccounts for Non Profit Organsiation

Payment of Honorarium is shown on side of A/c.

Payment of Honorarium is shown on __________ side of __________ A/c.

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Expenditure, Income and Expenditure A/c

Honorarium is a payment to a person who is not a regular employee (for example, an artist or a guest speaker). It is a revenue expense of the year, so it is shown on the expenditure side of the Income and Expenditure Account.

Option (2) Income, Income and Expenditure A/c — Incorrect. Honorarium is paid out by the organisation; it is an expense, not an income.

Option (3) Receipt, Receipt and Payment A/c — Incorrect. The cash paid appears on the payments side of the Receipt and Payment Account, never on its receipts side.

Option (4) Assets, Balance Sheet — Incorrect. Nothing is acquired for the payment, so it is not an asset in the Balance Sheet.

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):
Payments of Honorarium – “… It is the amount paid to the person who is not the regular employee of the institution. Payment to an artist for giving performance at the club is an example of honorarium. This payment of honorarium is shown on the expenditure side of the Income and Expenditure Account.”