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Tournament expenses ₹50,000 against tournament receipts ₹70,000. I&E credit (net):
A₹70,000 gross receipts
B₹50,000 expense only
C₹20,000 net surplus
DZero (net only shown)
Answer & Solution
Correct answer: C. ₹20,000 net surplus
1. Special activities like tournaments are usually netted in I&E.
2. Net surplus = 70,000 − 50,000 = ₹20,000.
3. The net figure is credited to I&E.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3.1 ¶5_
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