11 March 2013
Facts : 1]Registered Trust 2] Having Corpus of Rs.5 lakh 3} Opening Accumulated Income over Expenditure 4.5 Lakhs 4] Amount spent Rs.10 lakhs for valid purpose during the year.
Query: 1] How to give treatment for the excess expenditure over income.? Whether we have to reduce the Corpus or show "Excess of Expenditure over Income" In Balance sheet.
11 March 2013
You have to utilize the amount transferred to corpus Fund within 5 years...and if you utilized the amount for the purpose for which amount transferred then it is advisable to transfer the expenses to corpus account and remaining amount should be in Income and Expenditure account...
CAclubindia
