Question

Where does interest on general fund come?
Income side of income n expenditure account or added to general fund on the liabilities side of balance sheet?

Answer 1

Dear Student, Interest on General Fund Investments is usually added to the General Fund on the Liabilities side of the Balance Sheet. However, if there is no General Fund is not given (or appears on the Liabilities side), then such interest would be shown on the credit side (Income side) of the Income and Expenditure Account. Regards