Question

Show how will you deal with the following items while preparing the Balance Sheet of a Club as at 31st March, 2018.

$\begin{array}{cc}& \text{Rs}\\ \text{Sports Fund}& 5,00,000\\ 10\%\text{Sports Fund Investments on 1st April, 2017}& 5,00,000\\ \text{Interest Received on Sports Fund Investments}& 37,500\\ \text{Donations for Sports Fund}& 1,20,000\\ \text{Sports prizes awarded}& 1,00,000\\ \text{Expenses on sports events}& 15,000\end{array}$

Answer 1

Balance Sheet as at 31st March, 2018
$\begin{array}{ccccc}\text{Liabilities}& & \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Sports Fund}& 5,00,000& & \text{Sports Fund Investments}& 5,00,000\\ \text{Add : Interest received}& & & \text{Interest Accrued}& 12,500\\ \text{on sports fund}& & & & \\ \text{Investments}& 37,500& & & \\ \text{Add : Interest Accrued}& 12,500& & & \\ \text{Add : Donations for}& & & & \\ \text{sports fund}& \underset{–}{1,20,000}& & & \\ & 6,70,000& & & \\ \text{Less :}\text{Sports prizes}& & & & \\ \text{awarded}& \underset{–}{1,00,000}& & & \\ & 5,70,000& & & \\ \text{Less :}\text{Expenses on}& & & & \\ \text{sports events}& \underset{–}{15,000}& 5,55,000& & \end{array}$