alleryNPO incurs ₹15,000 on books for library. These books are added to:
AI&E as expense item
BLibrary books on Balance Sheet
CCapital Fund credit side
DSold off to recover cost
Answer & Solution
Correct answer: B. Library books on Balance Sheet
1. Books are long-term assets used in operations.
2. The expenditure is capital in nature.
3. Shown as Library Books on Balance Sheet, with depreciation each year.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3 capital expenditure_
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