Question :
Yoga Club collected life membership fees of Rs.1,50,000. This amount will be shown in the books on:
Option 1:
Credit side of Income and Expenditure A/c
Option 2:
Debit side of Income and Expenditure A/c
Option 3:
Added to capital fund in Balance Sheet
Option 4: Shown on assets side of Balance Sheet
Answer (1)
16th Jan, 2024
Correct Answer:
Added to capital fund in Balance Sheet
Solution : The life membership fee is a capital receipt and it is to be added to the capital fund on the Balance Sheet. Hence, the correct option is 3.
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