How would you treat the following items in the case of a 'not-for-profit' organisation?
Tournament Fund Rs.40,000. Tournament Expencess Rs.14,000. Receipt from Tournament Rs.16,000.

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Solution

In case of a Club tournament fund will be shown in the liabilities side of the Balance Sheet.
The Accounting treatment for the above mentioned items will be there in the liabilities side of the balance sheet as follows
Balance Sheet
as on........

Liabilities Amt.(Rs.)
Assests Amt.(Rs.)
Tournament Fund 40,000
(+)Receipts from turnament 16,000
(-)Tournament Expenses 14,000 42,000

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Similar questions

Q. How are the following items shown in the accounts of a Not-for-Profit Organisation ?

	₹
Tournament Fund	50,000
Tournament Expenses	15,000
Receipts from Tournament	20,000

Show how you would deal with the following items while preparing the Income & Expenditure Account for the year ending on 31st March 2017 and a Balance Sheet as at that date in each of the following alternative cases:

Case (i) Prizes awarded Rs 5,000.

Case (ii) Prizes awarded Rs 5,000; Prize Fund as on 31st March 2016 Rs 40,000; Donations for prizes received during the year 2016-17 Rs 7,200.

Case (iii) Prizes awarded Rs 5,000; Prize Fund as on 31st March 2016 Rs 40,000; Donations for prizes received during the year 2016-17 Rs 7,200; 9% Prize Fund Investments as on 31st March 2016 Rs 40,000; Interest received on Prize Fund Investments Rs 2,700.

Following is the Receipt and Payment Account of Indian Sports Club for the year ended 31-3-2014 :

$\begin{matrix} Receipts & Rs & Payments & Rs Balance b/d & 10, 000 & Salary & 15,000 Subscriptions & 52, 000 & Billiard Table & 20, 000 Entrance Fee & 5, 000 & Office Expenses & 6, 000 Tournament Fund & 26, 000 & Tournament Expenses & 31, 000 Sale of old newspapers & 1, 000 & Sports Equipment & 40, 000 Legacy & 37, 000 & Balance c/d & 19, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 31, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 31, 000 - -------- - \end{matrix}$

Other Information :

On 31-3-2014 Subscription outstanding was Rs 2,000 and on 31-3-2013 subscription outstanding was Rs 3,000 Salary outstanding on 31-3-2014 was Rs 1,500.

On 1-4-2013 the club had building Rs 75,000, furniture Rs 18,000, 12% investment Rs 30,000 and sports equipment Rs 30,000. Depreciation charged on these items including Billiard Table was 10%.

Prepare Income and Expenditure Account of the Club for the year ended 31-3-2014 and a Balance Sheet as at that date.

Prepare Trail Balance from the following information:

Bank overdraft Rs.28,000,Cash in hand Rs.4,000,Purchase return Rs.8,000,Sundry expenses Rs.24,000,Sales return Rs.16,000,Salaries Rs.16,000,Purchases Rs.56,000,Sales Rs.88,000,Creditors Rs.24,000,Debtors Rs.16,000,Stock (opening) Rs.20,000,Machinery Rs.40,000,Capital Rs.44,000.

Q. A building standing in the books at Rs.

40, 000

was sold for Rs.

52, 000

. The profit on sale of building was transferred to profit & loss account thus increasing the net profit to Rs.

1, 80, 000

. What is the fund from operation?

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Liabilities	Amt.(Rs.)	Assests	Amt.(Rs.)
Tournament Fund 40,000 (+)Receipts from turnament 16,000 (-)Tournament Expenses 14,000	42,000

How would you treat the following items in the case of a 'not-for-profit' organisation?Tournament Fund Rs.40,000. Tournament Expencess Rs.14,000. Receipt from Tournament Rs.16,000.

How would you treat the following items in the case of a 'not-for-profit' organisation?
Tournament Fund Rs.40,000. Tournament Expencess Rs.14,000. Receipt from Tournament Rs.16,000.