If there appears a Tournament Fund, then the expenses incurred on Tournament activities will be shown :
If there appears a Tournament Fund, then the expenses incurred on Tournament activities will be shown :
Solution
✅ Correct Option: 4
When a specific fund like Tournament Fund exists, the related expenses are deducted from the fund itself and not transferred to the Income and Expenditure Account. The net balance of the fund is then shown on the liabilities side of the Balance Sheet.
Note: This NPO-related question has been classified under Financial Statements / Nature-Structure as NPO accounting is not a listed subtopic.
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