Question

Prize Fund Rs.22,000. Intrest on prize fund investment Rs.3,000. Prizes given Rs.5,000. Prize Fund Investments Rs.18,000.

Answer 1

In the above case Prize Fund is invested somewhere. Hence, the following treatment will be there in the balance sheet.
Balance Sheet
as on.............

Liabilities	Amt.(Rs.)	Assests	Amt(Rs.)
Prize Fund 22,000 (+) Intrest on Investment 3,000 25,000 (-) Prize distributed 5,000	20,000	Prize Fund Investment	18,000