Question

0,000
How will the following information of Royal Sports Club be presented in
the Income and Expenditure Account for the year ended 31st March, 2019
and its Balance Sheet as on that date ?
Amount
Particulars
Tournament Fund as on 1st April, 2018
Tournament expenses incurred during the year
Donations for Tournament Fund received during the year
Sale of Tournament tickets during the year
5,00,000
8,00,000
1,20,000
1,50,000​

Answer 1

The answer is given below.

Explanation:

Particulars                                                               Amount

Tournament Fund as on 1st April                          500000

Add: Donation for tournament fund                      120000

Add: Sale of tournament tickets                            150000

Less: Tournament expenses                                 (800000)

Balance                                                                    (30000)

As the expenses are more than the income then it will be shown on the expenditure side of the income and expenditure account.

For balance sheet : It will be shown on the liability side of the balance sheet.

Answer 2

Explanation:

tournament fund 5,00,000+

donations 1,20,000+sale of tournament+1,50,000-8,00,000=

30000