Question : Interest received on match fund Investment should be
Option 1: Credited to Income and expenditure account
Option 2: Debited to Income and expenditure account
Option 3: Credited to capital fund
Option 4: Debited to the building fund
Correct Answer: Credited to Income and expenditure account
Solution : The answer is Credited to the Income and expenditure account.
When interest is received on a match fund investment, it is considered as income and should be credited to the Income and Expenditure account. This reflects the increase in funds available for the organization's operations and is recorded as revenue in the accounting records. Hence, the correct option is 1.
Question : Investment purchased during the year Rs 60,000 and interest on investment received Rs 1,000. 8% interest has accrued on Investment for five month. Calculate the amount credited to Income and Expenditure account and balance of investment at the end of the year.
Question : Furniture as of 1st April, 2019—Rs. 2,20,000; Furniture (having book value as on 1st April, 2019—Rs. 20,000) sold at a gain (profit) of 20% on 31st December, 2019. Furniture purchased on 1st October, 2019 for Rs. 1,00,000; Charge depreciation @ 10% p.a.
Question : A club maintains Match Fund, then all the expenses related to Match will be:
Question : How are the following items presented in the financial statement of a Non profit orginsation :
a. Tournament Fund - Rs 80,000
b. Tournament Expenses - Rs 14,000
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