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Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.
Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.
Q. How will you treat the land donated by his grandfather?
- a)To be treated as legacy and to be capitalized.
- b)To be treated as donation and is debited to Income and Expenditure Account
- c)To be treated as legacy and shown in the assets side.
- d)To be treated as legacy and is credited to Income and Expenditure Account
Correct answer is option 'A'. Can you explain this answer?
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Vijaya Shankar’s grandfather donated land for cricket coaching which is to be treated as legacy and is to be capitalized.
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Explanation:
1. Treatment of Land donated by grandfather:
- The land donated by Vijaya Shankar's grandfather is to be treated as a legacy and capitalized.
- Legacy refers to assets received by an organization as a gift through a will or inheritance.
- Capitalizing the land means to record it as an asset on the balance sheet rather than as an expense on the income statement.
- This land will be reflected as an asset of the cricket academy.
2. Other donations and expenses:
- Other donations, like the ₹5,00,000 donated by Vijaya Shankar's father and the expenses incurred for construction, maintenance, coach fee, and equipment purchases are treated as regular income and expenses.
- These are recorded in the income and expenditure account of the cricket academy.
3. Treatment of closing stock:
- The closing stock of bats and balls amounting to ₹1000 is considered as an asset.
- It will be shown on the assets side of the balance sheet.
4. Summary:
- In summary, the land donated by Vijaya Shankar's grandfather is a special case and is treated differently from other donations and expenses.
- It is capitalized and shown as an asset on the balance sheet of the cricket academy.
- Other donations and expenses are recorded in the income and expenditure account.
- The closing stock of bats and balls is treated as an asset on the balance sheet as well.
1. Treatment of Land donated by grandfather:
- The land donated by Vijaya Shankar's grandfather is to be treated as a legacy and capitalized.
- Legacy refers to assets received by an organization as a gift through a will or inheritance.
- Capitalizing the land means to record it as an asset on the balance sheet rather than as an expense on the income statement.
- This land will be reflected as an asset of the cricket academy.
2. Other donations and expenses:
- Other donations, like the ₹5,00,000 donated by Vijaya Shankar's father and the expenses incurred for construction, maintenance, coach fee, and equipment purchases are treated as regular income and expenses.
- These are recorded in the income and expenditure account of the cricket academy.
3. Treatment of closing stock:
- The closing stock of bats and balls amounting to ₹1000 is considered as an asset.
- It will be shown on the assets side of the balance sheet.
4. Summary:
- In summary, the land donated by Vijaya Shankar's grandfather is a special case and is treated differently from other donations and expenses.
- It is capitalized and shown as an asset on the balance sheet of the cricket academy.
- Other donations and expenses are recorded in the income and expenditure account.
- The closing stock of bats and balls is treated as an asset on the balance sheet as well.
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Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer?.
Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.Q. How will you treat the land donated by his grandfather?a)To be treated as legacy and to be capitalized.b)To be treated as donation and is debited to Income and Expenditure Accountc)To be treated as legacy and shown in the assets side.d)To be treated as legacy and is credited to Income and Expenditure AccountCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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