Question : Show how will you deal with the following items in the final accounts of a club :Rs.
Sports Fund 15,000
Sports Fund Investments 30,000
Income from Sports Fund Investments 1500
Donations for Sports Fund 12,000
Sports Prizes awarded 7,000
Expenses on Sports events 4,000
Option 1: Liability side: Sports Fund Rs. 17,500; Assets side: Sports Fund Investments Rs. 30,000
Option 2: Liability side: Sports Fund Rs. 14,500; Assets side: Sports Fund Investments Rs. 30,000
Option 3: Liability side: Sports Fund Rs. 20,500; Assets side: Sports Fund Investments Rs. 30,000
Option 4: None of the above
Correct Answer: Liability side: Sports Fund Rs. 17,500; Assets side: Sports Fund Investments Rs. 30,000
Solution : An Extract Balance Sheet
| Liabilities | Amount | Assets | Amount |
|
Sports
fund |
15000 | ||
|
Sports
Fund Investment |
30000 | ||
|
(+) Donation
for Sports Fund |
12000 | ||
| 27000 | |||
| (-) Sports | (7000) | ||
| Prize awarded | 2000 | ||
| (+) Int on | 1500 | ||
|
Sports Fund
Investment |
21500 | ||
|
(-) Exp on (4000)
Sports event |
(4000) | ||
| 17,500 |
Answer =
Liability side: Sports Fund Rs. 17,500; Assets side: Sports Fund Investments Rs. 30,000
.
Hence, the correct option is 1.
Related Questions
Question : Chain and Harsha were partners in a firm sharing profits in the ratio of 3: 2. On 1-4-2014 their Balance Sheet was as follows :
| Balance Sheet of Charu and Harsha as on 1st April, |
