Page 1
5. Receipts and Expenses for Special Occasions: Sometimes, the Not-For-Profit Organisation make arrangements for certain
special occasions, like, Drama, Annual Dinner, Cultural Meet, etc. The net amount (receipts less payments) from such
occasions is transferred to the Income and Expenditure Account.
o When receipts from such occasions is more than the payments, then the excess receipts are shown on the credit si de of
Income and Expenditure Account.
o When payments are more than the receipts, then the excess payments are shown on the debit side of Income and
Expenditure Account.
6. Sale of Old Newspapers / Magazines: The amount realised from sale of old newspapers or magazines is accounted as an
income and credited to the Income and Expenditure Account.
7. Sale of Sports Materials: Sale of sports materials (used materials like old balls, bats, nets, etc) is the regular feature with
any Sports Club. It is usually shown as an income in the Income and Expenditure Account.
8. Payment of Honorarium: Honorarium is a token payment given in honour of the services rendered by a person, who is
not an employee of the organisation. For example, payment made to an invited doctor for delivering a lecture. As it is an
expense, it is debited to the Income and Expenditure Account.
9. Sale of old asset: The amount received from the sale of an old asset appears on the debit side of Receipts and Payments
Account. Any gain or loss on the sale of asset is taken to the Income and Expenditure Account of the year.
10. Subscriptions
Subscription is the amount paid by the members of Not-For-Profit Organisations on periodical basis so that their
membership remains alive.
• It is a recurring and main source of income of such organisations so it is shown on the credit side of income and
expenditure a/c
11. Endowment Fund: It is a fund arising from a bequest or gift, the income of which is devoted for a specific purpose.
Thus, Endowment Fund is a donation, in which the donor puts a condition that only the income earned from the investment
of such funds can be used for the specified purpose and not the principal amount.
Cases for entrance fees
Entrance Fees is the amount paid by the new members at the time of joining the organisation
Accounitng treatement of entrance fees
How will you deal with the Entrance Fees while preparing the final accounts of New Delhi Sports Club for the year ended
31stMarch, 2011 in each of the following cases :
Case I .
entrance fees
information
revenue
receipt
income side
capital
receipt
b/s liabilty
side
no
information
income side
( cr. side )
Page 2
5. Receipts and Expenses for Special Occasions: Sometimes, the Not-For-Profit Organisation make arrangements for certain
special occasions, like, Drama, Annual Dinner, Cultural Meet, etc. The net amount (receipts less payments) from such
occasions is transferred to the Income and Expenditure Account.
o When receipts from such occasions is more than the payments, then the excess receipts are shown on the credit si de of
Income and Expenditure Account.
o When payments are more than the receipts, then the excess payments are shown on the debit side of Income and
Expenditure Account.
6. Sale of Old Newspapers / Magazines: The amount realised from sale of old newspapers or magazines is accounted as an
income and credited to the Income and Expenditure Account.
7. Sale of Sports Materials: Sale of sports materials (used materials like old balls, bats, nets, etc) is the regular feature with
any Sports Club. It is usually shown as an income in the Income and Expenditure Account.
8. Payment of Honorarium: Honorarium is a token payment given in honour of the services rendered by a person, who is
not an employee of the organisation. For example, payment made to an invited doctor for delivering a lecture. As it is an
expense, it is debited to the Income and Expenditure Account.
9. Sale of old asset: The amount received from the sale of an old asset appears on the debit side of Receipts and Payments
Account. Any gain or loss on the sale of asset is taken to the Income and Expenditure Account of the year.
10. Subscriptions
Subscription is the amount paid by the members of Not-For-Profit Organisations on periodical basis so that their
membership remains alive.
• It is a recurring and main source of income of such organisations so it is shown on the credit side of income and
expenditure a/c
11. Endowment Fund: It is a fund arising from a bequest or gift, the income of which is devoted for a specific purpose.
Thus, Endowment Fund is a donation, in which the donor puts a condition that only the income earned from the investment
of such funds can be used for the specified purpose and not the principal amount.
Cases for entrance fees
Entrance Fees is the amount paid by the new members at the time of joining the organisation
Accounitng treatement of entrance fees
How will you deal with the Entrance Fees while preparing the final accounts of New Delhi Sports Club for the year ended
31stMarch, 2011 in each of the following cases :
Case I .
entrance fees
information
revenue
receipt
income side
capital
receipt
b/s liabilty
side
no
information
income side
( cr. side )
During the year 2010-11. Entrance Fees received Rs.1,20,000.
Solution -
As no information is available the entrance will treated as an income
Income and Expenditure Account for the year ended 31st March, 2011
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
By entrance fees 1,20,000
Case 2.
During the year 2010-11, Entrance Fees received Rs.1,20,000. It is the policy of the club to treat the Entrance Fees as
'Revenue Receipt.
Solution -
As information is there available that It is the policy of the club to treat the Entrance Fees as 'Revenue Receipt.
So it will treated as an income
Income and Expenditure Account for the year ended 31st March, 2011
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
By entrance fees 1,20,000
Case 3.
During the year 2010-I l, Entrance Fees received Rs.1,20,000. It is the policy of the club to treat the Entrance Fees as
'Capital Receipt'.
Solution -
As information is there available that It is the policy of the club to treat the Entrance Fees as capitall Receipt.
So it will treated as liability
BALANCE SHEET
Liabilities Amt. (Rs.) Assets Amt.(Rs.)
Entrance fees 1,20,000
Case 4.
During the year 2010-11, Entrance Fees received Rs.1,20,000. According to the policy of the club, 30% of the Entrance
Fees is to be capitalized.
Solution -
As information is there available that the club, 30% of the Entrance Fees is to be capitalized.
30% will be shown in the liability side & - Rs. 36,000
70% in the income side – Rs. 84,000
Income and Expenditure Account for the year ended 31st March, 2011
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
By entrance fees 84,000
BALANCE SHEET
Liabilities Amt. (Rs.) Assets Amt.(Rs.)
Entrance fees 36,000
FUND BASED ACCOUNTING
Fund Based Accounting refers to an accounting system in which receipts and incomes related to a particular fund are
credited to that particular fund and expenses related to that fund are debited to it. It means, receipts and payments on
account of such funds are not recorded in the Income and Expenditure Account.
Examples: Such funds are created for specific purposes such as Prize Fund, Tournament Fund, Sports Fund, Building Fund,
etc.
Categories of Funds: In the case of Not-For-Profit Organisation, funds may be classified under following two heads:
(i) Unrestricted Fund: Unrestricted Fund does not carry any restriction with respect to its use. In other words, management
can use the amounts in the fund as it deems appropriate, but to carry out the purpose for which the organisation exists.
This fund is known as the General Fund or the Capital Fund to which the surplus for the year is added and in case of deficit,
deducted.
(ii) Restricted Fund: Restricted Fund is the fund, the use of which is restricted either by the management or the donor for
a specified purpose. Examples of such funds are: Endowment Fund, Annuity Fund, Loan Fund, Prize Fund, Sports Fund, etc.
(a) Endowment Fund: “It is a fund usually of a non-profit institution, arising from bequest or gift, the income of which
is devoted to a specified purpose.” —Kohler
Endowment Fund thus, is a donation with a condition by the donor to use only the income earned from the investment of
such funds for the specified purpose so that the original donated amount remains intact.
Page 3
5. Receipts and Expenses for Special Occasions: Sometimes, the Not-For-Profit Organisation make arrangements for certain
special occasions, like, Drama, Annual Dinner, Cultural Meet, etc. The net amount (receipts less payments) from such
occasions is transferred to the Income and Expenditure Account.
o When receipts from such occasions is more than the payments, then the excess receipts are shown on the credit si de of
Income and Expenditure Account.
o When payments are more than the receipts, then the excess payments are shown on the debit side of Income and
Expenditure Account.
6. Sale of Old Newspapers / Magazines: The amount realised from sale of old newspapers or magazines is accounted as an
income and credited to the Income and Expenditure Account.
7. Sale of Sports Materials: Sale of sports materials (used materials like old balls, bats, nets, etc) is the regular feature with
any Sports Club. It is usually shown as an income in the Income and Expenditure Account.
8. Payment of Honorarium: Honorarium is a token payment given in honour of the services rendered by a person, who is
not an employee of the organisation. For example, payment made to an invited doctor for delivering a lecture. As it is an
expense, it is debited to the Income and Expenditure Account.
9. Sale of old asset: The amount received from the sale of an old asset appears on the debit side of Receipts and Payments
Account. Any gain or loss on the sale of asset is taken to the Income and Expenditure Account of the year.
10. Subscriptions
Subscription is the amount paid by the members of Not-For-Profit Organisations on periodical basis so that their
membership remains alive.
• It is a recurring and main source of income of such organisations so it is shown on the credit side of income and
expenditure a/c
11. Endowment Fund: It is a fund arising from a bequest or gift, the income of which is devoted for a specific purpose.
Thus, Endowment Fund is a donation, in which the donor puts a condition that only the income earned from the investment
of such funds can be used for the specified purpose and not the principal amount.
Cases for entrance fees
Entrance Fees is the amount paid by the new members at the time of joining the organisation
Accounitng treatement of entrance fees
How will you deal with the Entrance Fees while preparing the final accounts of New Delhi Sports Club for the year ended
31stMarch, 2011 in each of the following cases :
Case I .
entrance fees
information
revenue
receipt
income side
capital
receipt
b/s liabilty
side
no
information
income side
( cr. side )
During the year 2010-11. Entrance Fees received Rs.1,20,000.
Solution -
As no information is available the entrance will treated as an income
Income and Expenditure Account for the year ended 31st March, 2011
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
By entrance fees 1,20,000
Case 2.
During the year 2010-11, Entrance Fees received Rs.1,20,000. It is the policy of the club to treat the Entrance Fees as
'Revenue Receipt.
Solution -
As information is there available that It is the policy of the club to treat the Entrance Fees as 'Revenue Receipt.
So it will treated as an income
Income and Expenditure Account for the year ended 31st March, 2011
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
By entrance fees 1,20,000
Case 3.
During the year 2010-I l, Entrance Fees received Rs.1,20,000. It is the policy of the club to treat the Entrance Fees as
'Capital Receipt'.
Solution -
As information is there available that It is the policy of the club to treat the Entrance Fees as capitall Receipt.
So it will treated as liability
BALANCE SHEET
Liabilities Amt. (Rs.) Assets Amt.(Rs.)
Entrance fees 1,20,000
Case 4.
During the year 2010-11, Entrance Fees received Rs.1,20,000. According to the policy of the club, 30% of the Entrance
Fees is to be capitalized.
Solution -
As information is there available that the club, 30% of the Entrance Fees is to be capitalized.
30% will be shown in the liability side & - Rs. 36,000
70% in the income side – Rs. 84,000
Income and Expenditure Account for the year ended 31st March, 2011
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
By entrance fees 84,000
BALANCE SHEET
Liabilities Amt. (Rs.) Assets Amt.(Rs.)
Entrance fees 36,000
FUND BASED ACCOUNTING
Fund Based Accounting refers to an accounting system in which receipts and incomes related to a particular fund are
credited to that particular fund and expenses related to that fund are debited to it. It means, receipts and payments on
account of such funds are not recorded in the Income and Expenditure Account.
Examples: Such funds are created for specific purposes such as Prize Fund, Tournament Fund, Sports Fund, Building Fund,
etc.
Categories of Funds: In the case of Not-For-Profit Organisation, funds may be classified under following two heads:
(i) Unrestricted Fund: Unrestricted Fund does not carry any restriction with respect to its use. In other words, management
can use the amounts in the fund as it deems appropriate, but to carry out the purpose for which the organisation exists.
This fund is known as the General Fund or the Capital Fund to which the surplus for the year is added and in case of deficit,
deducted.
(ii) Restricted Fund: Restricted Fund is the fund, the use of which is restricted either by the management or the donor for
a specified purpose. Examples of such funds are: Endowment Fund, Annuity Fund, Loan Fund, Prize Fund, Sports Fund, etc.
(a) Endowment Fund: “It is a fund usually of a non-profit institution, arising from bequest or gift, the income of which
is devoted to a specified purpose.” —Kohler
Endowment Fund thus, is a donation with a condition by the donor to use only the income earned from the investment of
such funds for the specified purpose so that the original donated amount remains intact.
(b) Annuity Fund: An annuity fund is established when a Not-For-Profit Organisation receives assets from a donor with
a condition to pay specified amount periodically to designated beneficiary or beneficiaties. Annuity is a. f ixed annual
(normally) payment and usually, continue only during the lifetime of the named beneficiary or for the period stipulated by
the donor. Annuity Fund donation, thereafter, becomes the property of the organisation.
(c) Loan Fund: Loan Fund is set-up to grant loans for specific purposes say to pursue higher studios.
(d) Fixed Assets Fund: Fixed Assets Vt.incl is a fund earmarked for investment in fixed assets or or already invested in
fixed assets. Example of Fixed Assets Fund is ‘Building Fund’.
(e) Prize Fund: Prize Fund is a fund set-up to use for distribution as prizes say for achievements or contribution to the
welfare of the society.
Case 1
Tournament Expenses = Rs. 12,000.
There Is no Specific Fund: So, the Tournament Expenses of Rs. 12,000 will be shown on the debit side of Income and
Expenditure Account.
Income and Expenditure Account for the year ended 31st March, 2015
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
To Tournament Expenses 12,000
Case 2
Tournament Expenses = Rs. 12,000; Tournament Receipts = Rs. 15,000.
There is no Specific Fund: Tournament Receipts of Rs. 15,000 would be shown on the credit side (or Income side) of Income
and Expenditure Account and Tournament Expenses ofRs. 12,000 will be shown on the debit side of Income and
Expenditure Account.
Income and Expenditure Account for the year ended 31st March, 2015
Expenditure Amt.(Rs.) Income Amt.(Rs.)
To Tournament Expenses 12,000 By Tournament Receipts 15,000
Case 3
Tournament Fund = Rs. 50,000; Tournament Expenses during the year = Rs. 9,000.
There is a Specific Fund: So, the balance of Tournament Fund after adjusting the Tournament Expenses, will be shown as a
liability in the Balance Sheet as at 31
st
March, 2015.
An Extract of Balance Sheet
as at 31
st
March, 2015
Liabilities Amt. (Rs.) Assets Amt. (Rs.)
Tournament Fund 50,000
Less: Tournament Expenses 9,000 41,000
Case 4
Tournament Fund = Rs. 50,000; Tournament Expenses during the year = Rs. 9,000; Tournament Receipts during the year =
Rs. 14,000.
There is a Specific Fund: So, the balance of Tournament Fund (after adding the Tournament Receipts and subtracting the
Tournament Expenses) will be shown as a liability in the Balance Sheet as at 31
s
'March, 2015.
An Extract of Balance Sheet as at 31
st
March, 2015
Liabilities Amt. (Rs.) Assets Amt.(Rs.)
Tournament Fund 50,000
Add: Tournament Receipts 14,000
Less: Tournament Expenses 9,000 55,000
Case 5
Tournament Fund = Rs. 28,000; Tournament Expenses during the year s= Rs. 37,000; Tournament Receipts during the year
= Rs. 4,000.
There is a Specific Fund: But, Tournament Expenses are more than the sum total of amount received as Tournament Fund
and Tournament Receipts. So, the deficiency will be charged as an expense in the Income and Expenditure Account.
Income and Expenditure Account for the year ended 31st March, 2015
Expenditure Amt. (t) Income Amt.. (Rs.)
To Tournament Expenses 37,000
Less: Tournament Fund 28,000
Page 4
5. Receipts and Expenses for Special Occasions: Sometimes, the Not-For-Profit Organisation make arrangements for certain
special occasions, like, Drama, Annual Dinner, Cultural Meet, etc. The net amount (receipts less payments) from such
occasions is transferred to the Income and Expenditure Account.
o When receipts from such occasions is more than the payments, then the excess receipts are shown on the credit si de of
Income and Expenditure Account.
o When payments are more than the receipts, then the excess payments are shown on the debit side of Income and
Expenditure Account.
6. Sale of Old Newspapers / Magazines: The amount realised from sale of old newspapers or magazines is accounted as an
income and credited to the Income and Expenditure Account.
7. Sale of Sports Materials: Sale of sports materials (used materials like old balls, bats, nets, etc) is the regular feature with
any Sports Club. It is usually shown as an income in the Income and Expenditure Account.
8. Payment of Honorarium: Honorarium is a token payment given in honour of the services rendered by a person, who is
not an employee of the organisation. For example, payment made to an invited doctor for delivering a lecture. As it is an
expense, it is debited to the Income and Expenditure Account.
9. Sale of old asset: The amount received from the sale of an old asset appears on the debit side of Receipts and Payments
Account. Any gain or loss on the sale of asset is taken to the Income and Expenditure Account of the year.
10. Subscriptions
Subscription is the amount paid by the members of Not-For-Profit Organisations on periodical basis so that their
membership remains alive.
• It is a recurring and main source of income of such organisations so it is shown on the credit side of income and
expenditure a/c
11. Endowment Fund: It is a fund arising from a bequest or gift, the income of which is devoted for a specific purpose.
Thus, Endowment Fund is a donation, in which the donor puts a condition that only the income earned from the investment
of such funds can be used for the specified purpose and not the principal amount.
Cases for entrance fees
Entrance Fees is the amount paid by the new members at the time of joining the organisation
Accounitng treatement of entrance fees
How will you deal with the Entrance Fees while preparing the final accounts of New Delhi Sports Club for the year ended
31stMarch, 2011 in each of the following cases :
Case I .
entrance fees
information
revenue
receipt
income side
capital
receipt
b/s liabilty
side
no
information
income side
( cr. side )
During the year 2010-11. Entrance Fees received Rs.1,20,000.
Solution -
As no information is available the entrance will treated as an income
Income and Expenditure Account for the year ended 31st March, 2011
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
By entrance fees 1,20,000
Case 2.
During the year 2010-11, Entrance Fees received Rs.1,20,000. It is the policy of the club to treat the Entrance Fees as
'Revenue Receipt.
Solution -
As information is there available that It is the policy of the club to treat the Entrance Fees as 'Revenue Receipt.
So it will treated as an income
Income and Expenditure Account for the year ended 31st March, 2011
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
By entrance fees 1,20,000
Case 3.
During the year 2010-I l, Entrance Fees received Rs.1,20,000. It is the policy of the club to treat the Entrance Fees as
'Capital Receipt'.
Solution -
As information is there available that It is the policy of the club to treat the Entrance Fees as capitall Receipt.
So it will treated as liability
BALANCE SHEET
Liabilities Amt. (Rs.) Assets Amt.(Rs.)
Entrance fees 1,20,000
Case 4.
During the year 2010-11, Entrance Fees received Rs.1,20,000. According to the policy of the club, 30% of the Entrance
Fees is to be capitalized.
Solution -
As information is there available that the club, 30% of the Entrance Fees is to be capitalized.
30% will be shown in the liability side & - Rs. 36,000
70% in the income side – Rs. 84,000
Income and Expenditure Account for the year ended 31st March, 2011
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
By entrance fees 84,000
BALANCE SHEET
Liabilities Amt. (Rs.) Assets Amt.(Rs.)
Entrance fees 36,000
FUND BASED ACCOUNTING
Fund Based Accounting refers to an accounting system in which receipts and incomes related to a particular fund are
credited to that particular fund and expenses related to that fund are debited to it. It means, receipts and payments on
account of such funds are not recorded in the Income and Expenditure Account.
Examples: Such funds are created for specific purposes such as Prize Fund, Tournament Fund, Sports Fund, Building Fund,
etc.
Categories of Funds: In the case of Not-For-Profit Organisation, funds may be classified under following two heads:
(i) Unrestricted Fund: Unrestricted Fund does not carry any restriction with respect to its use. In other words, management
can use the amounts in the fund as it deems appropriate, but to carry out the purpose for which the organisation exists.
This fund is known as the General Fund or the Capital Fund to which the surplus for the year is added and in case of deficit,
deducted.
(ii) Restricted Fund: Restricted Fund is the fund, the use of which is restricted either by the management or the donor for
a specified purpose. Examples of such funds are: Endowment Fund, Annuity Fund, Loan Fund, Prize Fund, Sports Fund, etc.
(a) Endowment Fund: “It is a fund usually of a non-profit institution, arising from bequest or gift, the income of which
is devoted to a specified purpose.” —Kohler
Endowment Fund thus, is a donation with a condition by the donor to use only the income earned from the investment of
such funds for the specified purpose so that the original donated amount remains intact.
(b) Annuity Fund: An annuity fund is established when a Not-For-Profit Organisation receives assets from a donor with
a condition to pay specified amount periodically to designated beneficiary or beneficiaties. Annuity is a. f ixed annual
(normally) payment and usually, continue only during the lifetime of the named beneficiary or for the period stipulated by
the donor. Annuity Fund donation, thereafter, becomes the property of the organisation.
(c) Loan Fund: Loan Fund is set-up to grant loans for specific purposes say to pursue higher studios.
(d) Fixed Assets Fund: Fixed Assets Vt.incl is a fund earmarked for investment in fixed assets or or already invested in
fixed assets. Example of Fixed Assets Fund is ‘Building Fund’.
(e) Prize Fund: Prize Fund is a fund set-up to use for distribution as prizes say for achievements or contribution to the
welfare of the society.
Case 1
Tournament Expenses = Rs. 12,000.
There Is no Specific Fund: So, the Tournament Expenses of Rs. 12,000 will be shown on the debit side of Income and
Expenditure Account.
Income and Expenditure Account for the year ended 31st March, 2015
Expenditure Amt.. (Rs.) Income Amt.. (Rs.)
To Tournament Expenses 12,000
Case 2
Tournament Expenses = Rs. 12,000; Tournament Receipts = Rs. 15,000.
There is no Specific Fund: Tournament Receipts of Rs. 15,000 would be shown on the credit side (or Income side) of Income
and Expenditure Account and Tournament Expenses ofRs. 12,000 will be shown on the debit side of Income and
Expenditure Account.
Income and Expenditure Account for the year ended 31st March, 2015
Expenditure Amt.(Rs.) Income Amt.(Rs.)
To Tournament Expenses 12,000 By Tournament Receipts 15,000
Case 3
Tournament Fund = Rs. 50,000; Tournament Expenses during the year = Rs. 9,000.
There is a Specific Fund: So, the balance of Tournament Fund after adjusting the Tournament Expenses, will be shown as a
liability in the Balance Sheet as at 31
st
March, 2015.
An Extract of Balance Sheet
as at 31
st
March, 2015
Liabilities Amt. (Rs.) Assets Amt. (Rs.)
Tournament Fund 50,000
Less: Tournament Expenses 9,000 41,000
Case 4
Tournament Fund = Rs. 50,000; Tournament Expenses during the year = Rs. 9,000; Tournament Receipts during the year =
Rs. 14,000.
There is a Specific Fund: So, the balance of Tournament Fund (after adding the Tournament Receipts and subtracting the
Tournament Expenses) will be shown as a liability in the Balance Sheet as at 31
s
'March, 2015.
An Extract of Balance Sheet as at 31
st
March, 2015
Liabilities Amt. (Rs.) Assets Amt.(Rs.)
Tournament Fund 50,000
Add: Tournament Receipts 14,000
Less: Tournament Expenses 9,000 55,000
Case 5
Tournament Fund = Rs. 28,000; Tournament Expenses during the year s= Rs. 37,000; Tournament Receipts during the year
= Rs. 4,000.
There is a Specific Fund: But, Tournament Expenses are more than the sum total of amount received as Tournament Fund
and Tournament Receipts. So, the deficiency will be charged as an expense in the Income and Expenditure Account.
Income and Expenditure Account for the year ended 31st March, 2015
Expenditure Amt. (t) Income Amt.. (Rs.)
To Tournament Expenses 37,000
Less: Tournament Fund 28,000
Less: Tournament Receipts 4,000 5,000
Case 6
When investment is made out of fund and total interest due is received
How would you deal with the following items while preparing Balance Sheet of Delhi Public School, Chandigarh for the year
ending 31
st
March, 2015.
Particulars Amt. (Rs.)
Prize Fund 40,000
10% Prize Fund Investments on 1
st
April, 2014 40,000
Donation for Prize Fund 6,000
Prizes awarded 7,000
Interest received on 10% Prize Fund Investment 4,000
Balance Sheet as at 31
st
March, 2015
Liabilities Amt. (Rs.) Assets Amt. (Rs.)
Prize Fund 40,000 10% Prize Fund Investments 40,000
Add: Donation for Prize Fund 6,000
Add: Interest Received 4,000
Less: Prizes awarded 7,000 43,000
Case 7
When investment is made out of fund and total interest due is NOT received
How would you deal with the following items while preparing Balance Sheet of Delhi Public School, panipat for the year
ending 31
st
March, 2015.
Particulars Amt. (Rs.)
Prize Fund 40,000
10% Prize Fund Investments on 1
st
April, 2014 40,000
Donation for Prize Fund 6,000
Prizes awarded 7,000
Interest received on 10% Prize Fund Investment 1,800
Balance Sheet as at 31
st
March, 2015
Liabilities Amt. (Rs.) Assets Amt. (Rs.)
Prize Fund 40,000 10% Prize Fund Investments 40,000
Add: Donation for Prize Fund 6,000 Interest Accrued 2,200
Add: Interest Received 1,800
Add: Interest Accrued 2,200
Less: Prizes awarded 7,000 43,000
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