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How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500?
Most Upvoted Answer
How will the following items dealt while preparing final accounts of a...
Liabilities side
prize fund 100000
+donation 15000
-prizes awarded 17500
+interest receive 4500
+accrues interest 5500==107500
assests side
prize fund investment 100000
accrued interest on prize fund investment 5500
completed
if any doubt ask me
prize fund 100000
+donation 15000
-prizes awarded 17500
+interest receive 4500
+accrues interest 5500==107500
assests side
prize fund investment 100000
accrued interest on prize fund investment 5500
completed
if any doubt ask me
Community Answer
How will the following items dealt while preparing final accounts of a...
Dealing with Prize Fund and Donations in Final Accounts of a Club
Prize fund, donations, and prizes awarded are important items that need to be dealt with properly while preparing the final accounts of a club. In this article, we will discuss how to deal with these items in the final accounts of a club for the year ending 31st March 2020.
Prize Fund
The prize fund is a fund that is set up by the club to award prizes to its members. The amount of the prize fund should be shown in the balance sheet under the head “Reserves and Surplus”. In this case, the prize fund is Rs 1,00,000. Therefore, the balance sheet will show:
Reserves and Surplus
Prize Fund Rs 1,00,000
10% Prize Fund Investments
The club has invested 10% of the prize fund on 1st April 2019. The interest received on this investment should be shown in the income and expenditure account. In this case, the interest received is Rs 4,500. Therefore, the income and expenditure account will show:
Income and Expenditure Account
To Interest on 10% Prize Fund Investment Rs 4,500
Donations for Prizes Received
Donations received for prizes should be shown in the income and expenditure account. In this case, the donations received are Rs 15,000. Therefore, the income and expenditure account will show:
Income and Expenditure Account
To Donations for Prizes Rs 15,000
Prizes Awarded
The amount of prizes awarded during the year should be deducted from the income and expenditure account. In this case, the prizes awarded are Rs 17,500. Therefore, the income and expenditure account will show:
Income and Expenditure Account
By Prizes Awarded Rs 17,500
Conclusion
In conclusion, while preparing the final accounts of a club for the year ending 31st March 2020, the prize fund should be shown in the balance sheet, 10% prize fund investments and donations received for prizes should be shown in the income and expenditure account, and the amount of prizes awarded should be deducted from the income and expenditure account. By following these steps, the final accounts of the club can be prepared accurately.
Prize fund, donations, and prizes awarded are important items that need to be dealt with properly while preparing the final accounts of a club. In this article, we will discuss how to deal with these items in the final accounts of a club for the year ending 31st March 2020.
Prize Fund
The prize fund is a fund that is set up by the club to award prizes to its members. The amount of the prize fund should be shown in the balance sheet under the head “Reserves and Surplus”. In this case, the prize fund is Rs 1,00,000. Therefore, the balance sheet will show:
Reserves and Surplus
Prize Fund Rs 1,00,000
10% Prize Fund Investments
The club has invested 10% of the prize fund on 1st April 2019. The interest received on this investment should be shown in the income and expenditure account. In this case, the interest received is Rs 4,500. Therefore, the income and expenditure account will show:
Income and Expenditure Account
To Interest on 10% Prize Fund Investment Rs 4,500
Donations for Prizes Received
Donations received for prizes should be shown in the income and expenditure account. In this case, the donations received are Rs 15,000. Therefore, the income and expenditure account will show:
Income and Expenditure Account
To Donations for Prizes Rs 15,000
Prizes Awarded
The amount of prizes awarded during the year should be deducted from the income and expenditure account. In this case, the prizes awarded are Rs 17,500. Therefore, the income and expenditure account will show:
Income and Expenditure Account
By Prizes Awarded Rs 17,500
Conclusion
In conclusion, while preparing the final accounts of a club for the year ending 31st March 2020, the prize fund should be shown in the balance sheet, 10% prize fund investments and donations received for prizes should be shown in the income and expenditure account, and the amount of prizes awarded should be deducted from the income and expenditure account. By following these steps, the final accounts of the club can be prepared accurately.
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How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500?
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How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500?.
How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500?.
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How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500?, a detailed solution for How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500? has been provided alongside types of How will the following items dealt while preparing final accounts of a club for year ending 31st march 2020: 1. Prize fund : Rs 1,00,000 2. 10% prize fund investments on 1st April 2019 : Rs 1,00,000 3. Donations for prizes received during the year : Rs. 15,000 4. Prizes awarded during the year : Rs 17,500 5. Interest received on 10% prize fund investment : Rs 4,500? theory, EduRev gives you an
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