Surplus revealed by Income and expenditure account ___________.

Is shown as deduction in accumulated fund at the balance sheet

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Is transferred to an account called capital fund

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Is distrusted among the members of the non-profit organization

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Must be donated to other non-profit organization

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Solution

The correct option is B Is transferred to an account called capital fund
b'Income and expenditure account can be defined as an account that reveals surplus or deficit of a non-trading concern by matching incomes and expenses of a specified accounting period. The balance of income and expenditure account is transferred to the balance sheet. Surplus balance is added to the capital fund in balance sheet. '

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