This is the payment to a person for his specific services rendered by him not as a regular employee. For example, the payment made to a Professor to deliver lecture on a topic or to a Television artist for his/her specific performance, is termed as honorarium. This is an item of 846 expense and is shown in the debit side of the Income and Expenditure Account. 10. Special Funds An institution may keep special funds for some special purposes. For example, a sports club may keep a special fund for meeting sports expenses or for awarding of sports prizes. In case such special funds, all incomes relating to such funds should be added to these funds in the Balance Sheet on the liabilities side. Similarly, all expenses on account of these funds should be deduced from these funds. In case of a deficit, the amount should be met out from the Income and Expenditure Account. In case of surplus, it will be better on account of convention of conservatism, to keep it in the Balance Sheet or merge it with the Capital Fund. Illustration: Following is the information given in respect of certain items of a sports club. You are required to show them in the Income and Expenditure Account and prepare the Balance Sheet of the club. Rs. Sports Fund as on 1.1.1998 10,000 Sports Fund Investments 10,000 Interest on Sports Fund Investments 1,000 Donation for Sports Fund 4,000 Sports Prizes awarded 3,000 Expenses on sports events 1,000 General Fund 30,000 General Fund Investments 30,000 Interest on General Fund Investments 4,000