Question 9 Chapter 1 of +2-A - T.S. Grewal 12 Class Part

Question 9 Chapter 1 of +2-A

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The solution of Question 9 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)

9. From the following information of a club show the amounts of match expenses and match fund in the appropriate Financial Statements of the club for the year ended on 31st March 2019:

Particulars	Rs
Match expenses paid during the year ended 31st March 2019	1,02,000
Match Fund as on 31st March 2019	24,000
Donation for Match Fund (Received during the year ended 31st March 2019	40,000
Proceeds from the sale of match tickets (Received during the year ended 31st March 2019	15,000

The solution of Question 9 Chapter 1 of +2-A: –

In the Books of __________________ Income and Expenditure A/c
Expenditure	Amount	Income	Amount
To Match Expenses A/c	23,000

Note: – In this case, there is a limited specific fund maintained to meet the expenditure related to the Matches, so up to the limit of the fund we will deduct match expenses from the fund and the balance will be transferred to the Income and Expenditure account.

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Total balance of fund = Match fund + Donation received + amount received from sale of march Tickets
= 24,000 + 40,000 + 15,000
= 79,000

Balance Amount of Match Expenses after deduction of the total amount from the total Balance of Fund
=1,02,000 – 79,000
= 23,000/-
This amount(23,000) will be transferred to the income and expenditure a/c and the Zero amount transferred to the Balance sheet

Balance Sheet
Liabilities		Amount	Assets	Amount
Match Fund	24,000
Add: – Donation for Match Fund	40,000
Sale of match Tickets	15,000
Less: – Match Expenses	79,000	NIL