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WAEC Financial Accounting 2017 Question 31

Question 31

Not-for-Profit Organisations

Donations to a club are

  1. A.credited to the Income and Expenditure Account.
  2. B.credited to the Receipts and Payments Account.
  3. C.debited to the Income and Expenditure Account.
  4. D.debited to Donations Account.
Show the answer and explanation

Answer: A (credited to the Income and Expenditure Account.)

Explanation

Donations received are income and are credited to the income and expenditure account.