Auditing and EthicsMCQQuestion 6237 of 213
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8. CA I, who is in charge of audit of NAND Co-operative Society, wants to ensure that the society has contributed for charitable purposes within the limits prescribed. How much is the society allowed to contribute for charitable purposes ?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — contribute an amount not exceeding 10% of the net profits remaining after the compulsory transfer to the reserve fund.

All Options:

  • Acontribute an amount not exceeding 10% of the net profits remaining after the compulsory transfer to the reserve fund. ✓
  • Bcontribute an amount at the appropriate rate as per class of the society.
  • Ccontribute an amount not exceeding 20% of the net profits remaining after the compulsory transfer to the reserve fund.
  • Dcontribute annually at prescribed percentage of the profits as approved by the General body of the society.

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

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