Question : Prize Fund as on 31st March, 2017 = Rs 2,50,000
Donation for prizes received during the year 2017-2018 = Rs 1,20,000
10% prize fund investment as on 31st March, 2017 = Rs 2,00,000
Interest received on prize fund investment = Rs 16,000
Prizes awarded = Rs 1,15,000
Calculate the amount of prize fund after all adjustments as on 31st March 2018.
Option 1: Prize Fund balance to be shown on the Liabilities side of Balance Sheet Rs 2,75,000
Option 2: Prize Fund balance to be shown on the assets side of closing Balance Sheet Rs 2,75,000
Option 3: Prize Fund balance shown on the Liabilities side Rs 2,71,000
Option 4: Prize Fund Rs 2,71,000 balance shown on the Liabilities side of the Balance Sheet
Correct Answer: Prize Fund balance to be shown on the Liabilities side of Balance Sheet Rs 2,75,000
Solution : Prize Fund as on 31st March, 2017 = Rs 2,50,000 (+) Interest received on prize fund investment = Rs 20,000 (10% X Rs.2,00,000) (-) Prizes awarded = (Rs 1,15,000) (+) Donation for prizes received during the year = Rs 1,20,000 Amount of prize fund = Rs.2,75,000 Hence, the correct option is 1.
Question : Prize Fund Rs. 1,00,000; Interest on Prize Fund Investments Rs. 10,000; Prizes awarded Rs. 20,000; Prize Fund Investments Rs. 80,000. How are the following items shown in the financial statements of Not-for-Profit Organizations?
Option 1: Balance to remain in the Liabilities side of the Balance Sheet 90,000
Option 2: Balance to remain in the Liabilities side of the Balance Sheet Rs 80,000
Option 3: Balance to remain in the assets side of the balance sheet Rs 90,000
Option 4: Balance to remain in the Liabilities side of the Balance sheet Rs 1,00,000
Question : Tiger Club has a prize fund of Rs.8,00,000. It incurs expenses on prizes amounting to Rs.6,00,000. The expenses should be:
Option 1: To be shown on the assets side of the balance sheet.
Option 2: To be deducted from the prize fund on the liabilities side of balance sheet
Option 3: Debited to Income and expenditure A/c
Option 4: To be deducted from the prize fund on the liabilities side of balance sheet and debited to Income and Expenditure A/c
Question : Rent received Rs 3,500 and rent credited to Income and Expenditure Account is Rs 4,000, where would the difference be transferred?
Option 1: outstanding Rent Rs 500 shown on the liabilities side of balance sheet
Option 2: outstanding Rent Rs 500 shown on the assets side of balance sheet
Option 3: Rs 500 Rent received in advance shown on the liabilities side of balance sheet
Option 4: Rs 500 paid in advance shown on the assets side of balane sheet
Question : The following information has been extracted from the financial statements of a not-for-profit organisation for the year ended 31st March 2019.
Opening balance of Match Fund Rs 5,00,000
Sale of match tickets Rs 3,75,000
Donation for match fund received during the year Rs 1,24,000
Match expenses Rs 10,00,000
Which of the following statements is correct for the presentation of the above item in the financial statement of the not-for-profit organisation?
Option 1: negative balance of match fund Rs 1,000 will be shown on the liabilities side of the Balance Sheet as at 31st March 2019
Option 2: opening balance of match fund Rs 5,00,000 will be shown on the liabilities side of Balance Sheet as at 1st April 2018
Option 3: negative balance of match Fund Rs 1,000 will be shown on the expenditure side of Income and Expenditure account for the year ended 31st March, 2019
Option 4: both 2 and 3
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