Question : The following information has been extracted from the financial statements of a not-for-profit organisation for the year ended 31st March 2019.
Opening balance of Match Fund Rs 5,00,000
Sale of match tickets Rs 3,75,000
Donation for match fund received during the year Rs 1,24,000
Match expenses Rs 10,00,000
Which of the following statements is correct for the presentation of the above item in the financial statement of the not-for-profit organisation?
Option 1: negative balance of match fund Rs 1,000 will be shown on the liabilities side of the Balance Sheet as at 31st March 2019
Option 2: opening balance of match fund Rs 5,00,000 will be shown on the liabilities side of Balance Sheet as at 1st April 2018
Option 3: negative balance of match Fund Rs 1,000 will be shown on the expenditure side of Income and Expenditure account for the year ended 31st March, 2019
Option 4: both 2 and 3
Correct Answer: both 2 and 3
Solution : Opening balance of Match Fund (liabilities) = Rs 5,00,000
(+) Sale of match tickets = Rs 3,75,000
(+) Donation for match fund received = Rs 1,24,000
(-) Match expenses =
(Rs 10,00,000)
Amount debited (negative balance) to I&E A/c =
Rs.1,000
Hence, the correct option is 4.
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