Accountancy, asked by fabdul5157, 1 year ago

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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Answers

Answered by abhi9199977
5
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
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