Q28 Accounts pls explain
Dear student
Balance sheet( an extract)
for the year ended 31st march 2021
working note: .
1)any expenditure of capital nature out of special fund(e.g expenditute on the construction of building) should be shown on the asset side of the balance sheet and an equal amount should be transfer from special fund to capital fund.
Regards
Balance sheet( an extract)
for the year ended 31st march 2021
| Liability | rs | Assets | rs |
| Capital fund opening balance 25,00,000 add: life membership fees 40,000 add: transferred from building fund (w.n1) 22,50,000 | 4790,000 | building in progress(w.n 1) | 2250,000 |
| Building fund 10,00,000 add: donations 25,00,000 less: transfer to capital fund 22,50,000 | 1250,000 | ||
| Tournament fund 15000 add: donations 25000 40,000 add: proceeds from sale of match tickets 35000 75,000 less: expenses 42,000 | 33000 | ||
| subscription for dinner 60,000 add: outstanding subscription 10000 | 70,000 |
1)any expenditure of capital nature out of special fund(e.g expenditute on the construction of building) should be shown on the asset side of the balance sheet and an equal amount should be transfer from special fund to capital fund.
Regards