Question

Receipts from Charity Shown Rs.7,000. Expenses on Charity show Rs.3,000.

Answer 1

In the absence of any specific fund the amount of Charity receipts will be shown in the credit side of the Income and Expenditure Account and the expenses made on charity show would be deducted from the receipts and net receipts will be shown as follows
Income and Expenditure Account for the year ending on.....
Dr Cr

Expenditure	Amt.(Rs.)	Income	Amt.(Rs)
		Charity Receipts 7,000 (-) Show Expenses 3,000	4,000