A non-profit organization received 210,000 as the entrance fee of a new member. If 50% of the fees has to be capitalized, what is the amount of fees needs to be shown in the income and expenditure account ?

1,10,000

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1,05,000

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2,10,000

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None of the above

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Solution

The correct option is B 1,05,000
Entrance fees received = 2,10,000.
Fees to be capitalized = 50%
It means rest of the 50% will be shown in Income and Expenditure Account.
50% of 2,10,000 = Rs. 1,05,000.

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A non-profit organization received 210,000 as the entrance fee of a new member. If 50% of the fees has to be capitalized, what is the amount of fees needs to be shown in the income and expenditure account ?

The correct option is B 1,05,000Entrance fees received = 2,10,000.Fees to be capitalized = 50%It means rest of the 50% will be shown in Income and Expenditure Account.50% of 2,10,000 = Rs. 1,05,000.

The correct option is B 1,05,000
Entrance fees received = 2,10,000.
Fees to be capitalized = 50%
It means rest of the 50% will be shown in Income and Expenditure Account.
50% of 2,10,000 = Rs. 1,05,000.