alleryDepreciation on furniture in an NPO is:
ADebited to I&E Account
BExcluded from I&E
CAdded to Capital Fund
DShown as asset increase
Answer & Solution
Correct answer: A. Debited to I&E Account
1. Depreciation is a non-cash revenue expense.
2. It is debited to I&E to allocate cost over useful life.
3. The asset's net book value reduces correspondingly on Balance Sheet.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3 features_
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