THE EXCESS REVENUE OVER EXPENDITURE IS CHARGED TO
- A. profit and loss
- B. revenue account
- C. accumulated fund ✓
- D. income and expenditure account
The answer to the question is: C. accumulated fund
The accumulated fund represents the surplus of income over expenditure that has been built up over time in an organization or institution. When there is a surplus of revenue over expenditure, it is added to the accumulated fund, thus increasing its value. This surplus can be utilized for future investments, expansion, or to cover any potential deficits in the future.
The accumulated fund is an important component of an organization’s financial health and stability. It serves as a reserve that can be drawn upon during times of financial need or to fund future projects and initiatives. By accumulating funds over time, organizations can ensure their long-term sustainability and growth.
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