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Question
How would you treat the following item in the case of a 'not-for-profit' organization?
"Tournament Fund Rs.40.000. Tournament Expenses Rs.14.000. Receipts from Tournament Rs.16.000."
Options
40000
42000
32000
49000
MCQ
Solution
42000
Explanation:
A separate tournament fund exists. The following is the accounting treatment -
| Liabilities side of the Balance Sheet | Amount (Rs) |
| Tournament fund | 40,000 |
| Add: Receipts from the tournament | 16,000 |
| TOTAL | 56,000 |
| Less: Tournament Expenses | 14,000 |
| Balance to remain on the Liabilities side of the Balance Sheet | 42,000 |
shaalaa.com
Receipts and Payments Account
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