Mr. Hari Prasad holds the designation of Finance manager in ‘Shri Hari
Stationery ltd’. Last year, performance of his department was as per the
expectation. Currently, he is busy in preparing financial blueprint of the next year.
To begin with he tried to forecast the sales in the next year. It is so because the sales on which depends the need for fixed and working capital. Thus an estimate
was made with regard to both these items. Similarly, he collected data in respect
of possible profits in the coming years. In this way, one can know how much of
capital will be available from within the business. The rest of the funds will be
arranged from outside the business. He is also thinking about the sources of
finance to be tapped outside the business.
a) Identify the financial concept as referred to in the above paragraph.
b) Write any two importance of the concept, so identified.
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Friends sports club, A not for profit organisation carries sports activity. The balance sheet of the
club for the year ended 31st March 2019 showed a sports front of rupees 300000 which is invested in
Bank deposit earning 10% interest per annum on 1st April 2019. expenses incurred on Sports Award for
rupees 15000. determine the amount of Sports 1 to be shown in the balance sheet for the year ended 31st
March 2020.
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