Financial Statements and Analysis Test - 12

Subscription is the amount paid by the members to keep their mem­bership alive.hence the amount received will be Subscription.

Endowment fund is set up to grant loan for specific purpose.
Annuity Fund is received assets from donors with condition to pay specified amount periodically.
Loan fund - Arising out of bequest of gift.
Prize fund is set up use for distribution of prizes.

Billiard Match expenses of Rs.2500 will be shown on the dr. side of income and expenditure account as this is an recurring expense.

Calculation of balance sheet will be like this:- 

Prize fund - 9000

Add:- Interest on prize fund investment 1000

Less:- Prize paid 2000

Amount on Liability side = Rs. 9000

 Prize fund investment Rs. 8000 will be shown on asset side.

Any amount spent on Fixed assets purchased and till the time of its installation every expense is to be cpaitalized to that assets. Hence , Total of Rs. 6800 Will be capitalized to furniture account.

Tournament fund =20000

+tournament receipt= 8000

- Tournament exp= 6000

amount recorded on Liability = 22000

Since the amount of Expenditure is more than receipt and fund amount , so it will be recorded on the dr. side of Income and expenditure side. Calculation will be as follow:- 

Poor girl marriage exp= 600000

- Poor girl marriage fund= 500000

- donation amount = 50000

Amount to be shown on Dr. of I/E A/c = 50000

Balance of Tournament fund = 80000

+ Receipt of tournament = 18500

- Tournament expense= 28000

Net Amount of tournament fund= 70500

This amount is to be shown in balance sheet on liability side.

Total amount received = 26000

- Subscription or previous year= 2000

- Subscriptiom for next year= 11000

Amount to be shown in income and expenditure = 13000

Receipt from sale of consumables is in recurring nature and this will be a revenue itrm or Revenue Receipt which is to be shown on income side of income and expenditure account.