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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 


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

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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