A non-profit organisation received Rs 60,000 as a donation from new member. Out of this, 20% of the donation should be used for constructing a building. What is the amount of donation that needs to be shown in the income and expenditure account?

Rs 2000

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Rs 8000

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Rs 10000

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None of these

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Solution

The correct option is B
Rs 8000

Donation income for the year = 60,000 * 80% = Rs 48,000

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A non-profit organisation received Rs 60,000 as a donation from new member. Out of this, 20% of the donation should be used for constructing a building. What is the amount of donation that needs to be shown in the income and expenditure account?

The correct option is B Rs 8000 Donation income for the year = 60,000 * 80% = Rs 48,000

The correct option is B
Rs 8000

Donation income for the year = 60,000 * 80% = Rs 48,000