Question

Interest received from Building Fund Investments should be— (a) credited to Building Fund Investment A/c (b) debited to Building Account (c) credited to Income & Expenditure A/c (d) credited to Building Fund A/c​

Answer 1

Explanation:

(A) Life Membership Subscription is a capital receipt

Answer 2

Interest received from Building Fund Investments should be—

(a) credited to Building Fund Investment A/c

(b) debited to Building Account

(c) credited to Income & Expenditure A/c

(d) credited to Building Fund A/c​

The correct answer is :

(c) credited to Income & Expenditure A/c

Explanation :

Interest received from investments from the Building Fund should be credited to the Income and Expenditure Account. Interest received by people from investments on building funds is counted as liabilities. The interest earned by any organization on an investment is added to the liabilities, as the interest earned has to be paid to the investors of that organization. Therefore investments linked to the building fund must be credited to the Income and Expenditure Account. Investment refers to the amount of money, which is provided to an organization to get profit in future for a specific purpose.

#SPJ3

——————————————————————————————————————

Know something more :

https://brainly.in/question/38128618

capital account balance is a ____ balance​?

https://brainly.in/question/24584568

When a machinery is purchased for cash, the cash balance is reduced and to that extent, the amount of machinery as an asset is recorded. This is done to follow which of the following accounting principles:

1) Dual Aspect Principle

2) Materiality Principle

3) Timeliness Principle

4) Consistency Principle​