Question

How would you treat the following item in the case of a 'not-for-profit' organization?

"Table Tennis match expenses Rs.4.000."

Options

• Debit side of Income and Expenditure Account

• Credit side of Income and Expenditure Account

• Can't say

• None of these

Answer 1

Debit side of Income and Expenditure Account.

Explanation:

There is no separate money for this. As a result, the Rs.4,000 spent on Table Tennis match expenses would appear on the debit side of the Income and Expenditure Account. It is the case of expenses that are unrelated to any particular fund.