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
Correct Answer:
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.
An account akin to Profit and Loss Account in
Which of the following show the debit balance
General donations are treated as:
Receipts and Payments Account does not include
A debit closing balance of Receipts and
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile