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 31.3.2007 and its Balance Sheet as on 31.3.2007:
Rs
(a)
Donation received during the year for the construction of a permanent Pavilion
12,25,000
Expenditure incurred up to 31.3.2007 on its construction
10,80,000
The total estimated expenditure on construction of Pavilion being
25,00,000
(b)
Tournament Fund:
Balance as on 1.4.2006
10,700
Subscriptions for tournament received during the year
65,800
Expenditure incurred during the year on conducting tournaments
72,400
(c)
Life Membership fee received during the year
28,000
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a) i) donation received is specific fund so liability in balance sheet
ii) debit side of income and expenditure account assuming revenue expenditure
iii) deduct from specific fund for construction of pavilion if amount is less than the fund otherwise remaining amount will be transferred to income and expenditure account debit side
b)i)as it is opening balance shown as liabilities in the opening balance sheet
ii)credit side of income and expenditure account as it is an income
iii) debit side of income and expenditure account as it is an expenditure
ii) debit side of income and expenditure account assuming revenue expenditure
iii) deduct from specific fund for construction of pavilion if amount is less than the fund otherwise remaining amount will be transferred to income and expenditure account debit side
b)i)as it is opening balance shown as liabilities in the opening balance sheet
ii)credit side of income and expenditure account as it is an income
iii) debit side of income and expenditure account as it is an expenditure
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