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How would you treat the following items in the case of a 'not-for-profit organization ?(i) Tournament Fund 40,000, Tournament Expenses 14,000, Receipts from Tournament 16,000.(ii) Table Tennis match expenses 4,000.(iii) Prize Fund 22,000, Interest on Prize Fund Investments 3,000, Prizes given 5,000, Prize Fund Investments 18,000.(iv) Receipts from Charity Show 7,000. Expenses on Charity Show 3,000. |
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Answer» (i) In case of a Club tournament fund will be shown in the liabilities side of the Balance Sheet. The Accounting treatment for the above mentioned items will be there in the liabilities side of the balance sheet as follows: Balance Sheet
(ii) In the absence of any specific fund related to Table Tennis the Expenses incurred in Table Tennis Match will be shown in the Income and Expenditure Account. More over all the independent expenses are shown in the debit side of income and expenditure account. (iii) In the above case Prize Fund is invested somewhere. Hence, the following treatment will be there in the balance sheet. Balance Sheet
(iv) In the absence of any specific fund the amount of Charity receipts will be shown in the credit side of the Income and Expenditure Account and the expenses made on charity show would be deducted from the receipts and net receipts will be shown as follows Income and Expenditure Account
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