Question

Sports Star Charitable club has income of Rs. 16,000 and deficit debited to capital fund ofRs. 4,300 for the year
2019-20, then expenditure for the year 2019-20 is:
(A)Rs. 11,700 (B)Rs. 4,300 (C)Rs. 20,300 (D) None of these​

Answer 1

Solution :

The question is related to non - profit organization.

Income of Sports star charitable club

• Rs.16,000

Deficit debited to capital fund

• Rs. 4300

Expenditure = 16000 + 4300 = 20,300

•°• The amount of expenditure for the year 2019 - 20 is Rs. 20,300

More to know

★ Income and expenditure account gives the balance of surplus and deficit.

★ Deficit = loss and Surplus = profit

★ Deficit is subtracted from capital fund whereas surplus is added in capital fund.

Answer 2

Given :-

• Sports Star Charitable club has income of Rs. 16,000

• Deficit debited to capital fund of Rs. 4,300 for the year  2019-20

To Find :-

• Expenditure for the year 2019-20  

Solution :-

         ⇒ Expenditure = Income + Fund

Where,

• Expenditure is of Rs. 16,000

• Fund is of Rs. 4,300

→ Rs. 16,000 + Rs. 4,300

→ Rs. 20,300

• Henceforth, the expenditure for the year 2019-20 is of Rs. 20,300

[ Option C ]