Following details are available for Saturn social club. Opening balance of capital fund Rs. 4,67,600 Donation capitalized during the year Rs. 12,500 Surplus in Income & Expenditure A/c Rs. 18,750. Closing balance at capital fund must be ___________.

4,98,850

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4,73,250

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40,750

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4,35,750

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Solution

The correct option is C 4,98,850
Closing balance for the capital fund can be calculated using the formula given below:
$C l o s i n g b a l a n c e = O p e n i n g b a l a n c e + C a p i t a l i s e d v a l u e + S u r p l u s$
Substitute values in the above equation
$C l o s i n g b a l a n c e = R s 4, 67, 600 + R s 18, 750 + R s 12, 500 = R s 4, 98, 850$
Thus, the closing balance of capital fund is $R s 4, 98.850$ .

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