Question

(a) Show the following information in financial statements of a 'Not-for-Profit Organisation:

$\begin{array}{cc}\text{Details}& \text{Amount (Rs)}\\ \text{Match Expenses}& 8,00,000\\ \text{Match Fund}& 4,00,000\\ \text{Donation for Match Fund}& 2,40,000\\ \text{Sale of Match tickets}& 3,60,000\end{array}$

(b) What will be the effect, if match expenses go up by Rs 2,50,000 other things remaining the same?

Answer 1

(a) Balance Sheet
as at..................
$\begin{array}{ccccc}\text{Liabilities}& & \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Match Fund}& 4,00,000& & & \\ \text{Add : Donation}& & & & \\ \text{(Specific)}& 2,40,000& & & \\ \text{Add : Sale of Match}& & & & \\ \text{Tickets}& \underset{–}{3,60,000}& & & \\ & 10,00,000& & & \\ \text{Less : Match}& & & & \\ \text{Expenses}& \underset{–}{8,00,000}& 2,00,000& & \end{array}$

(b) If match expenses go up by Rs 2,50,000, i.e., match expenses become Rs 8,00,000 + Rs 2,50,000 = Rs 10,50,000, the net balance of match fund becomes negative by Rs 50,000 which will be shown on the debit side of Income and Expenditure Account.