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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


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

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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