Question : Prize Fund Rs. 1,00,000; Interest on Prize Fund Investments Rs. 10,000; Prizes awarded Rs. 20,000; Prize Fund Investments Rs. 80,000. How are the following items shown in the financial statements of Not-for-Profit Organizations?

Option 1: Balance to remain in the Liabilities side of the Balance Sheet 90,000

Option 2: Balance to remain in the Liabilities side of the Balance Sheet Rs 80,000

Option 3: Balance to remain in the assets side of the balance sheet Rs 90,000

Option 4: Balance to remain in the Liabilities side of the Balance sheet Rs 1,00,000


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Balance to remain in the Liabilities side of the Balance Sheet 90,000


Solution : An Extract of Balance Sheet (Closing)

Liabilities Amount Assets Amount
Prize fund      1,00,000
(+) Int on        10,000
Prize fund Investment 90,000 Prize Fund Investment 80,000
1,10,000
(-) Prize awarded  (20,000)
90,000

The answer is: Balance to remain in the Liabilities side of the Balance Sheet 90,000.
Hence, the correct option is 1.

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