Question 8 Chapter 1 of +2-A - T.S. Grewal 12 Class Part

Question 8 Chapter 1 of +2-A

Table of Contents

The solution of Question 8 Chapter 1 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

8. How are the following dealt with while preparing the final accounts of a club?

Particulars	Debit	Credit
Match Fund		80,000
Match Fund Investments	72,000
Match Fund Bank Balance	3,500
Interest on Match Fund Investments		2880
Match Expenses	5,500

The solution of Question 8 Chapter 1 of +2-A: –

Balance Sheet
Liabilities		Amount	Assets	Amount
Match Fund	80,000		Match Fund Investments	72,000
Add: – Interest on Match Fund Investment	2,880		Match Fund Bank Balance	3,500
Less: – Match Expenses	5,500	77,380

Note 1: – There is a specific fund maintained to meet the expenditure related to the Match, So that’s why it will be directly posted in the balance sheet by deducting the amount of expenditure from the total amount of funds.

Note 2: – Match Fund investments and Match Fund Bank Balance are our assets so they will be shown
in the balance sheet on the assets side.

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