Concept:In an income and expenditure account, income is recorded on the credit side while expenditure is recorded on the debit side.
Explanation:The income and expenditure account is prepared by non-trading organisations.
It records all revenue incomes on the credit side and all revenue expenses on the debit side.
If total credit exceeds total debit, the difference is a surplus.
If total debit exceeds total credit, the difference is a deficit.
Now examine the given options:
Option A, Electricity, is an expense, so it is a debit item.
Option C, Stationery, is an expense, so it is a debit item.
Option D, Bar suppliers, represent amounts paid to suppliers for goods, which is also an expense or liability, hence a debit item.
Option B, Donations, is a receipt or income received by the organisation, so it must appear on the credit side.
Therefore, the only credit item among the options is donations.
Answer:The correct option is B. Donations.