A club has an opening balance of ₹8,50,000 in the Match Fund. Donations received for matches during the current year amounted to ₹4,25,000. Sale of match tickets amounted to ₹1,15,000. Match expenses incurred were ₹14,00,000. The balance in the Match Fund at the year-end will be:
- A₹10,000
- B₹(20,000)
- C₹(1,25,000)
- D₹(10,000)
Solution & Step-by-step Explanation
Let's calculate the total amount available in the fund:
\begin{aligned}\text{Opening Match Fund Balance} &= ₹8,50,000 \(+) \text{Donations received for match} &= ₹4,25,000 \(+) \text{Sale of match tickets} &= ₹1,15,000 \\hline\text{Total Fund Available} &= ₹13,90,000\end{aligned}
Total match expenses incurred = ₹14,00,000.Since the expenses exceed the available fund balance, the fund becomes zero, and the excess debit balance of (or a negative balance of ₹10,00,000 relative to the expenses) is transferred to the debit side of the Income and Expenditure Account. The question format implies identifying the net financial balance status of ₹(10,00,000).
\begin{aligned}\text{Opening Match Fund Balance} &= ₹8,50,000 \(+) \text{Donations received for match} &= ₹4,25,000 \(+) \text{Sale of match tickets} &= ₹1,15,000 \\hline\text{Total Fund Available} &= ₹13,90,000\end{aligned}
Total match expenses incurred = ₹14,00,000.Since the expenses exceed the available fund balance, the fund becomes zero, and the excess debit balance of (or a negative balance of ₹10,00,000 relative to the expenses) is transferred to the debit side of the Income and Expenditure Account. The question format implies identifying the net financial balance status of ₹(10,00,000).