Question : Prize Fund as on 31st March, 2017 = Rs 2,50,000
Donation for prizes received during the year 2017-2018 = Rs 1,20,000
10% prize fund investment as on 31st March, 2017 = Rs 2,00,000
Interest received on prize fund investment = Rs 16,000
Prizes awarded = Rs 1,15,000
Calculate the amount of prize fund after all adjustments as on 31st March 2018.
Option 1: Prize Fund balance to be shown on the Liabilities side of Balance Sheet Rs 2,75,000
Option 2: Prize Fund balance to be shown on the assets side of closing Balance Sheet Rs 2,75,000
Option 3: Prize Fund balance shown on the Liabilities side Rs 2,71,000
Option 4: Prize Fund Rs 2,71,000 balance shown on the Liabilities side of the Balance Sheet
Correct Answer: Prize Fund balance to be shown on the Liabilities side of Balance Sheet Rs 2,75,000
Solution :
Prize Fund as on 31st March, 2017 = Rs 2,50,000
(+) Interest received on prize fund investment = Rs 20,000 (10% X Rs.2,00,000)
(-) Prizes awarded = (Rs 1,15,000)
(+) Donation for prizes received during the year =
Rs 1,20,000
Amount of prize fund =
Rs.2,75,000
Hence, the correct option is 1.
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