Question :
A sports club, incurred tournament. Expenses of Rs.2,10,000 whereas it has only Rs.1,80,000 in its Tournament Fund A/c. This information will be reflected as:
Option 1:
Debit Income and Expenditure A/c by Rs.30,000
Option 2:
Credit Income and Expenditure A/c by Rs.30,000
Option 3:
Rs.30,000 Tournament Fund on the asset side of
Balance Sheet
Option 4: Rs.30,000 Tournament Fund on the liabilities side of Balance Sheet
Answer (1)
23rd Jan, 2024
Correct Answer:
Debit Income and Expenditure A/c by Rs.30,000
Solution :
Tournament Fund to be debited to Income and Expenditure A/c = Expenses - Balance of Tournament Fund = Rs.2,10,000 - Rs.1,80,000 = Rs.30,000.
Hence, the correct option is 1.
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