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.

Rs 1,00,000

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Rs 40,000

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Rs 40,000

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None of these

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Solution

The correct option is C
Rs 40,000

Amount to be shown = 1,00,000 * 60% = Rs 60,000

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Similar questions

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:

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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.

The correct option is C Rs 40,000 Amount to be shown = 1,00,000 * 60% = Rs 60,000

The correct option is C
Rs 40,000

Amount to be shown = 1,00,000 * 60% = Rs 60,000