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
Correct Answer: both 2 and 3
Solution : Opening balance of Match Fund (liabilities) = Rs 5,00,000
(+) Sale of match tickets = Rs 3,75,000
(+) Donation for match fund received = Rs 1,24,000
(-) Match expenses = (Rs 10,00,000) Amount debited (negative balance) to I&E A/c = Rs.1,000
Hence, the correct option is 4.
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
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 : Tournament Fund Rs. 2,00,000; Tournament Expenses Rs. 60,000; Receipts from Tournament Rs. 80,000. How are the following items shown in the financial statements of Not-for-Profit Organizations?
Option 1: Tournament fund Balance to remain in the Liabilities side of the Balance Sheet Rs.2,20,000
Option 2: Balance to remain in the Assets side of the Balance Sheet Rs.2,20,000
Option 3: Balance to remain in the Liabilities side of the Balance Sheet Rs.2,80,000
Option 4: Balance to remain in the income side of the income and expenditure account Rs.2,20,000
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