Question : Investment purchased during the year Rs 60,000 and interest on investment received Rs 1,000. 8% interest has accrued on Investment for five month. Calculate the amount credited to Income and Expenditure account and balance of investment at the end of the year.

Option 1: interest on investment credited to Income and Expenditure Account Rs 1,000 and closing balance of Investment is Rs 61,000

Option 2: interest on investment credited to Income and expenditure account Rs 3,000 and investment at the end of the year Rs 62,000

Option 3: Interest on investment credited to Income and Expenditure Account by Rs 2,000 and balance of investment at the end of the year Rs 60,000

Option 4: interest on investment credited to Income and Expenditure Account Rs 1,000 and Investment Balance at the end of the Year Rs 60,000

Question : Amount paid for the Stationary during the year Rs. 40,000; stock of stationary at the beginning and end of the year Rs. 6,600 and Rs. 5,800 respectively; creditors for sports materials at the beginning and end of the year Rs. 10000 and Rs. 8000 respectively. What amount will be recorded in Income and Expenditure Account?

Option 1: Rs. 40,800

Option 2: Rs. 38,800

Option 3: Rs. 38,000

Option 4: Rs. 40,000

Question : Municipal Taxes paid during the year Rs 4,000. Municipal taxes amount to 4,000 per year and are paid upto 30th June every year. Calculate the amount of the subscription debited to the Income and Expenditure Account and also calculate the amount of subscription received in advance last year and also calculate the amount of subscription received in advance at the end of the year.

Option 1: Rs 4,000 debited to Income and Expenditure account and advance paid at the beginning of the year Rs 1,000 and Rs 1,000 paid in advance at the end of the year. 

Option 2: Rs 3,000 debited to Income and Expenditure account and Rs 1,000 paid in advance at the end of the year.

Option 3: Rs 4,000 debited to Income and Expenditure Account and advance at the beginning of the year Rs 500 and Rs 500 at the end of the year.

Option 4: Rs 5,000 debited to Income and Expenditure.

Question : General Fund Rs 8,00,000

Investment Rs 8,00,000

Interest on General Fund Investment Rs 80,000

Calculate the amount of General Fund balance at the end of the year.

Option 1: Rs 8,80,000

Option 2: Rs 7,20,000

Option 3: Rs 8,00,000

Option 4: None of the above 

Question : Salaries paid Rs 4,500 and salaries debited to Income and Expenditure Account is Rs 5,000, where would the difference be transferred?

Option 1: assets side of closing Balance Sheet

Option 2: assets side of opening Balance Sheet

Option 3: Liabilities side of closing Balance Sheet

Option 4: Liabilities side of opening Balance Sheet