Question : Prize Fund has opening balance of Rs 10,000 which is deposited in a fixed deposit in the bank and earned interest of Rs 1,500. Further donation of Rs 5,000 was received during the year. Rs 20,000 was spent on the distribution of prizes. How much will be shown in the balance sheet?
Option 1: prize fund Rs 15,000
Option 2: prize Fund Rs 16,500
Option 3: prize fund Rs 3,500
Option 4: None of the above
Correct Answer: None of the above
Solution :
Opening Prize Fund = Rs 10,000
(+) Earned interest = Rs 1,500
(+) Donation = Rs 5,000
(-) Spent on prizes =
(Rs.20,000)
Amount in Balance Sheet =
Nil
Hence, the correct option is 4.
