Question : Interest received on match fund Investment should be
Option 1: Credited to Income and expenditure account
Option 2: Debited to Income and expenditure account
Option 3: Credited to capital fund
Option 4: Debited to the building fund
Answer (1)
12th Jan, 2024
Correct Answer: Credited to Income and expenditure account
Solution : The answer is Credited to the Income and expenditure account.
When interest is received on a match fund investment, it is considered as income and should be credited to the Income and Expenditure account. This reflects the increase in funds available for the organization's operations and is recorded as revenue in the accounting records.
Hence, the correct option is 1.
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