the opening balance of prize fund of sports club was 5400 further donation towards the fund recieved during the year was rs 4800 during the year rs 3500 was spend on prize and rs 400 was received as interest on investment of prize fund the closing balance of prize fund is?
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Answer:
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Closing balance = Rs. 6300
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Answer:
Closing balance of Prize fund = Rs. 7,100
Explanation:
Prize fund is a specific fund or special fund. These fund is used for special purpose or special event. All specific fund belong to Capital nature. So prize fund is also belong to capital fund which shown as liabilities in the Balance sheet.
- Any income belong to these fund is added to it.
- Any expenses belong to these is deducted from it.
- Any donation belong to these fund is added to it.
Here, Prize fund = Rs. 5,400
+ Donation = Rs. 4,800 (Donation belong to specific fund)
+ Interest on investment = Rs. 400 (income belong to specific fund)
- Spend on prize = (Rs. 3,500) (expenses belong to specific fund)
Closing balance of Prize fund = Rs. 7,100
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