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
Correct Answer: To be deducted from the prize fund on the liabilities side of balance sheet
Solution : Expenses related to any specific fund will be deducted from it on the liabilities side of the balance sheet. All the specific funds and reserves are shown after deducting these expenses. Hence, the correct option is 2.
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 : If there is a tournament Fund, then Match Expenses are transferred to
Option 1: Income and Expenditure A/c.
Option 2: Assets side of Balance Sheet.
Option 3: Match Fund in Liabilities side of Balance Sheet.
Option 4: Both Income and Expenditure A/c and to Balance Sheet.
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