A non-profit organization received Rs. 10,000 as the entrance fee of a new member. If 20% of the fee has to be capitalized, what is the amount of fee needs to be shown in the income and expenditure account?

Rs. 2,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 8,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Rs. 9,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 10,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B
Rs. 8,000

Amount of fee needs to be shown in the income and expenditure account

= 10000* 80%

=Rs. 8,000

Suggest Corrections

Similar questions

Q. 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 ?

During an year, a club received Rs 1,00,000 as entrance fees. According to the policy of the club, 40% of the entrance fees is to be capitalized. What amount shall be entered in Income & Expenditure account.

How will you deal with the Entrance Fees while preparing the final accounts of New Delhi Sports Club for the year ended 31st March, 2017 in each of the following cases:

Case 1. During the year 2016-17, Entrance Fees received Rs
1,20,000.

Case 2. During the year 2016-17, Entrance Fees received Rs 1,20,000. It is the policy of the club to treat the Entrance Fees as ' Revenue Receipt'.

Case 3. During the year 2016-17, Entrance Fees received Rs 1,20,000. It is the policy of the club to treat the Entrance Fees as 'Capital Receipt'.

Case 4. During the year 2016-17, Entrance Fees received Rs 1,20,000. According to the policy of the club, 30% of the Entrance Fees is to be capitalised.

Entrance fee is shown on which side of income and expenditure account?

A non-profit organisation received Rs 60,000 as a donation from new member. Out of this, 20% of the donation should be used for constructing a building. What is the amount of donation that needs to be shown in the income and expenditure account?

Join BYJU'S Learning Program

A non-profit organization received Rs. 10,000 as the entrance fee of a new member. If 20% of the fee has to be capitalized, what is the amount of fee needs to be shown in the income and expenditure account?

The correct option is B Rs. 8,000 Amount of fee needs to be shown in the income and expenditure account = 10000* 80% =Rs. 8,000

The correct option is B
Rs. 8,000

Amount of fee needs to be shown in the income and expenditure account

= 10000* 80%

=Rs. 8,000