Why Accrued interest on tournament fund investment is shown on both side of balance sheet(liabilities and asset)?

Why Accrued interest on tournament fund investment is shown on both side of balance sheet(liabilities and asset)? Acananting ror Not-Few.prorit Organisatrons SOLUTION. Cosmos u b Balance Sheet as at 31st 2017 Au _ frtMr, t Ftmd Add : t Exp I N oes : (i) All incomes pertaining to Fund are added are deducted from Fund (ii) Accrued interest on Tournament Investment will added to fund and shown as asset. ILLUSTRATION 5. How will you deal with the following items whi aring Income and Expenditure Account for the year ended 31st March, Balance Sheet as on 31st March, 2017 of Diamond Sports Club?

Dear Student,

Generally any interest received on the investments made out of specific fund is added to the fund balance on the liabilities side. But since here, the interest is not yet received (accrued), therefore it must be added to the fund balance and along with it the interest must be shown on the assets side of the Balance Sheet (like we do for all accrued incomes).

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