Question

How are following items dealt while preparing the final accounts of Youth Club for the year ending 31st March, 2020: Expenditure on construction of Hostel Rs.6, 00,000. The construction work is in progress and has not yet completed.
a)Opening Hostel Fund 8,00,000
b)Opening 10% Hostel Fund Investments 8,00,000
c)Donation for Hostel Fund Received 10,00,000
d)Interest Received on Hostel Fund Investments 80,000
e)Opening Capital Fund 18,00,000
d)Subscription for Governor’s Party Received 40,000
g)Outstanding Subscription for Governor’s Party 10,000​

Answer 1

Answer:

d)Interest Received on Hostel Fund Investments 80,000