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


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 17th 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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