Question : Show how will you deal with the following items in the final accounts of a club :Rs.
Sports Fund 15,000
Sports Fund Investments 30,000
Income from Sports Fund Investments 1500
Donations for Sports Fund 12,000
Sports Prizes awarded 7,000
Expenses on Sports events 4,000
Option 1: Liability side: Sports Fund Rs. 17,500; Assets side: Sports Fund Investments Rs. 30,000
Option 2: Liability side: Sports Fund Rs. 14,500; Assets side: Sports Fund Investments Rs. 30,000
Option 3: Liability side: Sports Fund Rs. 20,500; Assets side: Sports Fund Investments Rs. 30,000
Option 4: None of the above
Correct Answer: Liability side: Sports Fund Rs. 17,500; Assets side: Sports Fund Investments Rs. 30,000
Solution : An Extract Balance Sheet
| Liabilities | Amount | Assets | Amount |
|
Sports
fund |
15000 | ||
|
Sports
Fund Investment |
30000 | ||
|
(+) Donation
for Sports Fund |
12000 | ||
| 27000 | |||
| (-) Sports | (7000) | ||
| Prize awarded | 2000 | ||
| (+) Int on | 1500 | ||
|
Sports Fund
Investment |
21500 | ||
|
(-) Exp on (4000)
Sports event |
(4000) | ||
| 17,500 |
Answer =
Liability side: Sports Fund Rs. 17,500; Assets side: Sports Fund Investments Rs. 30,000
.
Hence, the correct option is 1.
Related Questions
Question : Chain and Harsha were partners in a firm sharing profits in the ratio of 3: 2. On 1-4-2014 their Balance Sheet was as follows :
| Balance Sheet of Charu and Harsha as on 1st April, 2014 | |||
| Liabilities | Amount(Rs) | Assets | Amount(Rs) |
| Creditors | 17,000 | Cash | 6,000 |
| General Reserve | 4,000 | Debtors | 15,000 |
| Workmen Compensation Fund | 9,000 | Investments | 20,000 |
| Investment Fluctuation Fund | 11,000 | Plant | 14,000 |
| Provision for bad debts | 2,000 | Land & buildings | 38,000 |
| Capitals: | |||
| Charu- 30,000 | |||
| Harsha- 20,000 | 50,000 | ||
| 93,000 | 93,000 | ||
On the above date Vaishali was admitted for 1/4 th share in the profits of the firm on the following terms :
(a) Vaishali will bring Rs.20,000 for her capital and Rs.4,000 for her share of goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was Rs. 15,000.
(d) There was a liability of Rs.6,000 for workmen compensation.
(e) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's capital by opening current accounts.
Question:
Amount distributed among the old partners capital account in Respect of Investment fluctuating fund.
Option 1: debiting charu's capital account with Rs 36,00 and harsha with Rs 2,400
Option 2: crediting Charu's Capital account with Rs 3,600 and Harsh with Rs 2,400
Option 3: crediting Charu's capital account with Rs 6,600 and Harsh's with Rs 4,400
Option 4: None of these
