Question :
Which one of the following is the incorrect statement?
Option 1:
If there is sports fund, the expense incurred on sports is deducted from sports fund balance
Option 2:
Opening Balance Sheet is prepared to find the opening balance of capital fund
Option 3:
Donations for a specific purpose are always capitalised
Option 4:
Scholarships granted to students out of funds provided by government will be debited to Income and Expenditure A/c
Correct Answer:
Scholarships granted to students out of funds provided by government will be debited to Income and Expenditure A/c
Solution : The scholarship provided out of the fund is specific in nature and it will be come in the Balance Sheet. Hence, the correct option is 4.
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