Question :
Entrance fees of a club, if it is a non-recurring item, should be:
Option 1:
Credited to Income and Expenditure A/c
Option 2:
Debited to Income and Expenditure A/c
Option 3:
Added to capital fund
Option 4: None of these
Answer (1)
24th Jan, 2024
Correct Answer:
Added to capital fund
Solution : Entrance fees of capital nature (non-recurring in nature) will added to the capital fund in the closing Balance Sheet only. Hence, the correct option is 3.
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