@Setanta,
OP:
-In/On the handout given to us, there is a sentence:...
The handout is in paper form, which preposition should I use?
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Set: The sentence will be in the text printed on the handout.
I'm not sure that that's what triggers 'in' but then I'm also not sure that it doesn't.
I think that 'in' occurs because something is contained within the pages of a book, magazine, multi leaf handout, etc.
If it was a single page handout,
-On the handout given to us, there is a sentence:...