alleryHonorarium of ₹10,000 paid to a speaker is treated as:
ACapital expenditure asset
BReduction from Capital
CRevenue expenditure I&E
DLiability provision item
Answer & Solution
Correct answer: C. Revenue expenditure I&E
1. Honorarium is a payment for services rendered for the period.
2. It is a revenue expense in nature.
3. Hence debited to I&E.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3 examples_
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