How will you deal with the following items while preparing for the Bombay Women Cricket Club, its Income and Expenditure Account for the year ending 3 - Accountancy MCQ CUET Accountancy 2022 20 Aug Shift 2 2026 | ExamTest.live

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How will you deal with the following items while preparing for the Bombay Women Cricket Club, its Income and Expenditure Account for the year ending 31st March 2021, and its Balance Sheet, on the same date : Donation for the Pavilion construction Rs. 12, 25, 000, Expenditure incurred Rs. 10, 80, 000, Total estimate Rs. 25, 00, 000 .

A $Rs. 1, 45, 000 to be shown in Liability side of Balance Sheet$
B $Rs. 1, 45, 000 to be shown on the Asset side of the Balance sheet and Rs. 25, 00, 000 to be shown on Liability side$
C $Rs. 12, 75, 000 to be shown on expenditure side of Income and Expenditure Account$
D $Rs. 12, 75, 000 to be shown on Income side of Income and Expenditure Account$

Solution & Step-by-step Explanation

Specific donation for pavilion creates a Pavilion Fund. Pavilion Fund initially = 12, 25, 000 Less: Expenditure incurred on construction transferred to Capital Fund = (10, 80, 000) Remaining Pavilion Fund balance = Rs. 1, 45, 000 This unutilized fund of Rs. 1, 45, 000 will be shown on the Liability side of the Balance Sheet. The amount spent (Rs. 10, 80, 000) will appear as Pavilion Work-in-Progress on the Asset side.

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How will you deal with the following items while preparing for the Bombay Women Cricket Club, its Income and Expenditure Account for the year ending 31st March 2021, and its Balance Sheet, on the same date : Donation for the Pavilion construction Rs. 12, 25, 000, Expenditure incurred Rs. 10, 80, 000, Total estimate Rs. 25, 00, 000 .

Rs. 1, 45, 000 to be shown in Liability side of Balance Sheet

Rs. 1, 45, 000 to be shown on the Asset side of the Balance sheet and Rs. 25, 00, 000 to be shown on Liability side

Rs. 12, 75, 000 to be shown on expenditure side of Income and Expenditure Account

Rs. 12, 75, 000 to be shown on Income side of Income and Expenditure Account

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