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
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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