Question

An honorarium of Rs. 5,000 has been paid by the club. Where will it be shown in the financial statement of NPO?

• A. as a payment in the receipts and payments account
• B. as an expense in income and expenditure account
• C. either as a payment in the receipts and payments account or as an expense in income and expenditure account
• D. Not shown

Answer 1

The correct option is C

either as a payment in the receipts and payments account or as an expense in income and expenditure account

It will be shown as a payment in the receipts and payments account and as an expense in income and expenditure account.