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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


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 27th Jan, 2024

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.

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