Question

1. If match expenses are more than match fund, the excess of match expenses
over match fund is transferred to :
(A) Assets side of Balance Sheet
(B) Liabilities side of Balance Sheet
(C) Debit side of Income & Expenditure A/c
(D) Credit side of Income & Expenditure A/c​

Answer 1

ᴘʀᴇᴘᴀʀᴀᴛɪᴏɴ ᴏғ ʙᴀʟᴀɴᴄᴇ ɪɴ ᴛʜᴇ ᴄᴀsᴇ ᴏғ ɴᴏɴ-ᴛʀᴀᴅɪɴɢ ᴏʀ ɴᴏɴ-ᴘʀᴏғɪᴛ ᴍᴀᴋɪɴɢ ᴄᴏɴᴄᴇʀɴ ᴀɴᴅ ᴘʀᴇᴘᴀʀᴀᴛɪᴏɴ ᴏғ ʙᴀʟᴀɴᴄᴇ sʜᴇᴇᴛ ɪɴ ᴛʜᴇ ᴄᴀsᴇ ᴏғ ᴀ ᴛʀᴀᴅɪɴɢ ғɪʀᴍ ɪs sᴀᴍᴇ. ɪᴛ ʜᴀs ᴀʟʟ ʟɪᴀʙɪʟɪᴛɪᴇs ᴀɴᴅ ᴀssᴇᴛs ᴀs ᴏɴ ᴛʜᴇ ᴅᴀᴛᴇ ᴏғ ᴛʜᴇ ᴘʀᴇᴘᴀʀᴀᴛɪᴏɴ ᴏғ ᴛʜᴇ ʙᴀʟᴀɴᴄᴇ sʜᴇᴇᴛ ʙʏ ᴛʜᴇ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴ. ᴛʜᴇ ᴇxᴄᴇss ᴏғ ᴀssᴇᴛs ᴏᴠᴇʀ ᴛʜᴇ ʟɪᴀʙɪʟɪᴛɪᴇs ɪs ᴛᴇʀᴍᴇᴅ ᴀs ᴄᴀᴘɪᴛᴀʟ ғᴜɴᴅ ᴏʀ ᴛʜᴇ ɢᴇɴᴇʀᴀʟ ғᴜɴᴅ. ʙʀᴏᴡsᴇ ᴍᴏʀᴇ ᴛᴏᴘɪᴄs ᴜɴᴅᴇʀ ᴀᴄᴄᴏᴜɴᴛɪɴɢ ғᴏʀ ɴᴏᴛ ғᴏʀ ᴘʀᴏғɪᴛ ᴏʀɢᴀɴɪsᴀᴛɪᴏɴs ᴍᴇᴀɴɪɴɢ, ᴄʜᴀʀᴀᴄᴛᴇʀɪsᴛɪᴄs ᴀɴᴅ ᴀᴄᴄᴏᴜɴᴛɪɴɢ ʀᴇᴄᴏʀᴅs ғᴏʀ ɴᴏᴛ-ғᴏʀ-ᴘʀᴏғɪᴛ ᴏʀɢᴀɴɪsᴀᴛɪᴏɴs ʀᴇᴄᴇɪᴘᴛ ᴀɴᴅ ᴘᴀʏᴍᴇɴᴛ ᴀᴄᴄᴏᴜɴᴛ ɪɴᴄᴏᴍᴇ ᴀɴᴅ ᴇxᴘᴇɴᴅɪᴛᴜʀᴇ ᴀᴄᴄᴏᴜɴᴛ ᴘʀᴇᴘᴀʀᴀᴛɪᴏɴ ᴏғ ʙᴀʟᴀɴᴄᴇ sʜᴇᴇᴛ ғᴏʀ ɴᴏɴ-ᴘʀᴏғɪᴛ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴ ʙᴀʟᴀɴᴄᴇ sʜᴇᴇᴛ ғᴏʀ ɴᴏɴ-ᴘʀᴏғɪᴛ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴ: ɢᴇɴᴇʀᴀʟ ғᴜɴᴅ ɪɴ ᴛʜᴇ ᴄᴀsᴇ ᴏғ ɴᴏɴ-ᴘʀᴏғɪᴛ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴs, ᴛʜᴇ ᴄᴀᴘɪᴛᴀʟ ғᴜɴᴅ ɪs ᴀᴄᴄᴜᴍᴜʟᴀᴛᴇᴅ ᴀʟᴏɴɢ ᴡɪᴛʜ ᴄᴀᴘɪᴛᴀʟ ʀᴇᴄᴇɪᴘᴛs ᴀɴᴅ ʀᴇᴄᴇɪᴘᴛs ᴛʜᴀᴛ ᴀʀᴇ ᴄᴀᴘɪᴛᴀʟɪᴢᴇᴅ ʙʏ ғᴜʀᴛʜᴇʀ ɪɴᴄʀᴇᴀsɪɴɢ ᴛʜᴇ sᴜʀᴘʟᴜs ᴏʀ ᴅᴇᴄʀᴇᴀsᴇᴅ ʙʏ ᴛʜᴇ ᴅᴇғɪᴄɪᴛ, ᴅᴜʀɪɴɢ ᴛʜᴇ ʏᴇᴀʀ. ᴀᴛ ᴛʜᴇ ʙᴇɢɪɴɴɪɴɢ ᴏғ ᴀ ɴᴏɴ-ᴛʀᴀᴅɪɴɢ ᴄᴏɴᴄᴇʀɴ, ᴛʜᴇʀᴇ ᴡɪʟʟ ʙᴇ ɴᴏ ғᴏʀᴍᴀʟ ᴄᴀᴘɪᴛᴀʟ ғᴜɴᴅ ᴀɴᴅ ɪɴ sᴜᴄʜ ᴄᴀsᴇ, ᴛʜᴇ sᴜʀᴘʟᴜs, ɪғ ᴀɴʏ, ᴇᴀʀɴᴇᴅ ᴅᴜʀɪɴɢ ᴛʜᴇ ʏᴇᴀʀ ᴄᴏɴsᴛɪᴛᴜᴛᴇ ᴛʜᴇ ᴄᴀᴘɪᴛᴀʟ ғᴜɴᴅ ᴀᴛ ᴛʜᴇ ᴇɴᴅ ᴏғ ᴛʜᴇ ʏᴇᴀʀ. ᴛʜᴇ ʙᴀʟᴀɴᴄᴇ sʜᴇᴇᴛ ᴏғ ᴀ ɴᴏɴ-ᴘʀᴏғɪᴛ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴ ɪs ᴘʀᴇᴘᴀʀᴇᴅ ɪɴ ᴛʜᴇ sᴀᴍᴇ ᴍᴀɴɴᴇʀ ᴀs ɪɴ ᴛʜᴇ ᴄᴀsᴇ ᴏғ ᴀ ʙᴜsɪɴᴇss ᴇɴᴛᴇʀᴘʀɪsᴇ. ᴛʜᴇ ᴀssᴇᴛs ᴏғ ᴛʜᴇ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴ ᴀʀᴇ ʀᴇᴄᴏʀᴅᴇᴅ ᴏɴ ᴛʜᴇ ʀɪɢʜᴛ sɪᴅᴇ ᴀɴᴅ ʟɪᴀʙɪʟɪᴛɪᴇs ᴏɴ ᴛʜᴇ ʟᴇғᴛ sɪᴅᴇ. ᴛʜᴇ ɴᴏɴ-ᴘʀᴏғɪᴛ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴs ᴅᴏ ɴᴏᴛ ᴜsᴇ ᴛʜᴇ ᴛᴇʀᴍ ᴄᴀᴘɪᴛᴀʟ. ɪɴsᴛᴇᴀᴅ, ɢᴇɴᴇʀᴀʟ ғᴜɴᴅ ᴏʀ ᴀᴄᴄᴜᴍᴜʟᴀᴛᴇᴅ ғᴜɴᴅ ᴀᴘᴘᴇᴀʀs ᴏɴ ᴛʜᴇ ʙᴀʟᴀɴᴄᴇ sʜᴇᴇᴛ. ᴛʜᴇ ɴᴘᴏ ᴍɪɢʜᴛ ᴀʟsᴏ ᴄʀᴇᴀᴛᴇ ᴀ sᴘᴇᴄɪᴀʟ ғᴜɴᴅ, sᴜᴄʜ ᴀs ᴘʀɪᴢᴇ ғᴜɴᴅ ᴏʀ ᴍᴀᴛᴄʜ ғᴜɴᴅ. ᴛʜᴇ ᴘᴜʀᴘᴏsᴇ ᴏғ ᴡʜɪᴄʜ ɪs ᴛᴏ ᴍᴇᴇᴛ ᴛʜᴇ ᴇxᴘᴇɴsᴇs ʀᴇʟᴀᴛᴇᴅ ᴛᴏ ᴛʜᴇ ᴘᴜʀᴘᴏsᴇ ғᴏʀ ᴡʜɪᴄʜ ɪᴛ ɪs ᴄʀᴇᴀᴛᴇᴅ. ᴛʜᴇ ɪɴᴄᴏᴍᴇs ᴏɴ ᴛʜᴇ ᴀᴍᴏᴜɴᴛ ᴡʜɪᴄʜ ɪs ɪɴᴠᴇsᴛᴇᴅ ғʀᴏᴍ ᴛʜᴇsᴇ ғᴜɴᴅs ᴀᴄᴄʀᴜᴇ ᴛᴏ ᴛʜᴇ ғᴜɴᴅ ᴀʟᴏɴᴇ ᴀɴᴅ ɴᴏᴛ ᴛʜᴇ ɪɴᴄᴏᴍᴇ ᴀɴᴅ ᴇxᴘᴇɴᴅɪᴛᴜʀᴇ ᴀᴄᴄᴏᴜɴᴛ.

ᴇᴠᴇɴ ᴀ ɴᴏɴ-ᴘʀᴏғɪᴛ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴ ᴍᴀɪɴᴛᴀɪɴs ᴘʀᴏᴘᴇʀ ʙᴏᴏᴋs ᴏғ ᴀᴄᴄᴏᴜɴᴛs. ɪᴛ ᴀɪᴍs ᴛᴏ ғᴀᴄɪʟɪᴛᴀᴛᴇ sɪᴍᴘʟᴇ ᴀɴᴅ ᴄᴏɴᴠᴇɴɪᴇɴᴛ ᴄᴀʟᴄᴜʟᴀᴛɪᴏɴ ᴏғ ɪᴛᴇᴍs ᴏғ ɪɴᴄᴏᴍᴇ ᴀɴᴅ ᴇxᴘᴇɴᴅɪᴛᴜʀᴇ ᴀɴᴅ ғɪɴᴅɪɴɢ ᴛʜᴇ ᴄᴏʀʀᴇᴄᴛ ᴘᴏsɪᴛɪᴏɴ ᴏғ ᴀssᴇᴛs ᴀɴᴅ ʟɪᴀʙɪʟɪᴛɪᴇs ᴏғ ᴛʜᴇ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴ. ʟᴇᴛ ᴜs ʟᴇᴀʀɴ ʜᴏᴡ ᴛʜɪs ʙᴀʟᴀɴᴄᴇ sʜᴇᴇᴛ ɪs ᴍᴀᴅᴇ ᴀɴᴅ ᴛʜᴇ ᴀᴄᴄᴏᴜɴᴛɪɴɢ ᴛʀᴇᴀᴛᴍᴇɴᴛ ᴏғ ᴀ ɢᴇɴᴇʀᴀʟ ғᴜɴᴅ. ᴛʜᴇʀᴇ ᴀʀᴇ sᴇᴠᴇʀᴀʟ ᴄᴏᴍᴘᴏɴᴇɴᴛs ᴏғ ᴛʜᴇ ᴀᴄᴄᴏᴜɴᴛɪɴɢ sʏsᴛᴇᴍ ᴏғ ɴᴏɴ-ᴘʀᴏғɪᴛ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴ. ᴛʜɪs ɪɴᴄʟᴜᴅᴇs ᴛʜᴇ ʙᴀʟᴀɴᴄᴇ sʜᴇᴇᴛ ᴀs ᴡᴇʟʟ. ʟᴇᴛ ᴜs ᴜɴᴅᴇʀsᴛᴀɴᴅ ᴍᴏʀᴇ ᴀʙᴏᴜᴛ ᴛʜᴇ ʙᴀʟᴀɴᴄᴇ sʜᴇᴇᴛ ᴏғ ᴀ ɴᴏɴ-ᴘʀᴏғɪᴛ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴ.

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