Question

How would you treat the following item in the case of a 'not-for-profit' organization?

"Prize Fund Rs.22.000. Interest on Prize fund Investments Rs.3.000. Prizes are given Rs.5.000. Prize fund Investments Rs.18.000.

पर्याय

• 19000

• 18000

• 20000

• 12000

Answer 1

18000

Explanation:

There is a dedicated fund. The accounting treatment is the same as it is on the liabilities side.

Balance Sheet	Amount (Rs)
Prize Fund	22000
Add Interest	3000
Less: Prizes Paid	5000
Balance to remain on the Liabilities side of the Balance Sheet	20000
Prize fund Investments would appear on the Assets side of the Balance Sheet.	18000