Question : Tournament Fund Rs. 2,00,000; Tournament Expenses Rs. 60,000; Receipts from Tournament Rs. 80,000.
How are the following items shown in the financial statements of Not-for-Profit Organizations?
Option 1: Tournament fund Balance to remain in the Liabilities side of the Balance Sheet Rs.2,20,000
Option 2: Balance to remain in the Assets side of the Balance Sheet Rs.2,20,000
Option 3: Balance to remain in the Liabilities side of the Balance Sheet Rs.2,80,000
Option 4: Balance to remain in the income side of the income and expenditure account Rs.2,20,000
Correct Answer: Tournament fund Balance to remain in the Liabilities side of the Balance Sheet Rs.2,20,000
Solution : An Extract of Balance Sheet (Closing)
| Liabilities | Amt | Assets | Amt |
| Tournament Fund - 2,00,000 | |||
| (+)Receipts from Tournament 80,000 | 2,20,200 | ||
| 2,80,000 | |||
|
(-) Tournament (60,000)
Exp |
The answer is
Tournament fund Balance to remain in the Liabilities side of the Balance Sheet 2,20,000.
Hence, the correct option is 1.
