Question :
Delhi Sports club has sports fund investment Rs.2,00,000 on which interest @ 10% is received. This will be shown in the books as:
Option 1:
Credited to Income and Expenditure A/c
Option 2:
Addition to capital fund
Option 3:
Addition to sports fund
Option 4:
Shown on asset side along with sports fund investment
Correct Answer:
Solution : Interest on investment = Rs.2,00,000 X 10% = Rs.20,000 is to be added to the sports fund because it is a specific income. Hence, the correct option is 3.
An account akin to Profit and Loss Account in
Receipts and Payments Account does not include
Which of the following is not a feature of a
Sale of used sports material for Rs.500 by a cricket
Which one of the following is the incorrect statement?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile