Any revenue expense for which a separate fund is available will be ___________.

debited to that separate fund

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debited to income and expenditure account

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capital issues and shown in the balance sheet

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credited to the separate fund

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Solution

The correct option is B debited to that separate fund
Separate funds are those funds which are earmarked for a specific activity. In case of fund based accounting, all the incomes related to that particular activity is credited to that fund and all the expenses debited to that fund. For example, Building fund, Sports fund etc.

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