Question :
How would the following items be shown in the books of a not-for-organisation?
Match Fund = Rs.15.000
Prizes awarded = Rs.5,000
Match Income = Rs.10,000
Option 1:
Match fund will appear at Rs.20,000 in the Balance Sheet
Option 2:
Match fund will appear at Rs.25,000 in the Balance Sheet and prizes awarded will be debited to Income and Expenditure A/c
Option 3:
Match fund will appear in new Balance Sheet as Rs.15,000 and prize awarded and match income will be debited and credited respectively to Income and Expenditure A/c
Option 4: None of these
Correct Answer:
Match fund will appear at Rs.25,000 in the Balance Sheet and prizes awarded will be debited to Income and Expenditure A/c
Solution :
Balance in Balance Sheet = Match Fund + Match Income = Rs.15,000 + Rs10,000 = Rs.25,000.
Prize awarded of Rs.5,000 will be debited to Income and Expenditure A/c. Hence, the correct option is 2.
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