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प्रश्न
How will you deal with the following items while preparing for the Bombay Women Cricket Club its income and expenditure account for the year ending 31.3.2017 and its Balance Sheet as on 31.3.2017:
| Rs | |
| a) Donation received during the year for the construction of a permanent Expenditure incurred up to 31.3.2017 on its construction The total estimated expenditure on construction of Pavilion being |
1225000 1080000 2500000 |
| b) Tournament Fund: Balance as on 1.4.2016 Subscriptions for tournament received during the year Expenditure incurred during the year on conducting tournaments |
10700 65800 72400 |
| c) Life Membership fee received during the year | 28000 |
Give reasons for your answers
उत्तर
a)
Books of Bombay Women Cricket Club
Balance Sheet
as on March 31, 2017
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
| Donation for Pavilion | 1225000 | 145000 | Construction of Pavilion in Progress | 1080000 |
| Less: Exp. on construction of Pavilion | (1080000) | |||
| Capital | ||||
| Add: Pavilion Construction | 1080000 | 1080000 | ||
Reason
Donation for construction of Pavilion is a donation for specific purpose.
Expenses on construction on Pavilion is a capital expenditure.
b)
Balance Sheet
as on March 31, 2017
| Liabilities | Amount (RS) | Assets | Amount (Rs) | |
| Tournament Fund | 10700 | 4100 | ||
| Add: Subscription for Tournament | 65800 | |||
| 76500 | ||||
| Less: Tournament Expenses | (72400) | |||
Reason
All funds received are treated as capital receipts and expenses related to any fund are deduced from the concerned funds.
c)
Balance Sheet
as on March 31, 2017
| Liabilities | Amount (Rs) | Assests | Amount (Rs) |
| Life Membership Fees | 28000 |
Reason
Life Membership Fees are considered as capital receipts and are shown on the Liabilities side of the Balance Sheet, if nothing is specified about its treatment. But if it is to be treated as revenue item, then it is shown on the credit side of the Income and Expenditure Account.
