Question : Entrance/Admission Fee received by the NPO is:
Option 1: Added to the Capital fund in Balance Sheet.
Option 2: transferred to the credit of Income and Expenditure A/c
Option 3: shown in the debit of Income and Expenditure A/c
Option 4: shown as a separate item in the Liabilities side of the Balance Sheet.
Correct Answer: transferred to the credit of Income and Expenditure A/c
Solution : Entrance Fee or Admission Fee is the amount paid by a person at the time of becoming member of the not-for-profit organisation. Entrance Fee is a revenue receipt and therefore, is transferred to the credit of Income and Expenditure Account, being an income for the year. Hence, the correct option is 2.
Question : Specific Donation received by NPO are shown in the:
Question : If there is a tournament Fund, then Match Expenses are transferred to
Question : If there is a Match Fund then Match expenses and Income are transferred to
Question : Tiger Club has a prize fund of Rs.8,00,000. It incurs expenses on prizes amounting to Rs.6,00,000. The expenses should be:
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