Question

If there is tournament expenses RS 100000 and tournament fund rs 30000 how and where will be show

Answer 1

Answer:

tournament expense of Rs.70,000 will be shown in expenditure side of income and expenditure a/c

Explanation:

Tournament fund is given Rs. 30,000 which is a specific fund ,thus, will be shown in Liability side of Balance sheet.

Tournament expenditure is Rs 1,00,000 which is more than the available fund.

First we will subtract expenditure of 30,000 from Tournament fund which will make Tournament fund=0 in balance sheet.

Remaining 70,000 will be shown in expenditure side of income and expenditure a/c

                                     Income and expenditure A/c

Expenditure                           Amt                        Income              Amt

Tournament expense          70,000

                                          Balance sheet  

Liability                                   Rs                       Asset                              Rs

Tournament fund  30,000

Tournament exp   (30,000)  = 0