In the not-for-profit-making organization, the excess of income over expenditure is?
Deducted from the capital
Added to the accumulated fund
Added to the capital
Deducted from the the accumulated fund
Correct answer is C
Surplus is the excess of income over expenditure. A credit balance in the Income and expenditure account shows surplus. It is the profit earned and should be added to the capital fund on the liabilities side of the balance sheet