How are following items accounted in a Not-for-profit Organisation ?
(i) Tournament Fund Rs 2,00,000 , Tournament Expenses Rs. 60,000, Receipts from Tournament Rs.80,000.
(ii) Billiard Match Expenses Rs. 25,000.
(III) Prize fund Rs. 1,00,000, Interest on Prize Fund Investments Rs. 10,000 , Prizes paid Rs. 20,000, Prize fund investments Rs. 80,000.
(iv) Receipts From Cinema show Tickets Rs. 50,000, Expenses on Cinema show Rs. 15,000.
(v) Expenditure on construction of Pavilion during the year was Rs. 6,00,000. the construction work is in progress and not yet completed . Pavilion fund as on 31st March , 2018 Rs. 8,00,000 . Donation for Pavilion received on 15th September , 2018 Rs. 10,00,000, Capital fund as at 31st March 2018 Rs. 20,00,000.

Answer

N/a

Explanation

(i) There is a Specific Tournament Fund : The accounting treatment is as under:
`" Liabilities side"" "2,00,000`
`" Tournament fund "" "(80,000)/(2,80,000)`
Add: Recipts from tounament
` underset("Balance to remain on the Liabilities side of the Balance Sheet")("Less: Tournaments Expenses")" "(60,000)/(2,20,000)`
(ii) There is No Specific Fund, Hence Rs. 25,000 Incurred as Bililiard March Expenses would be shown on the Debit side of the Income and Expenditure Account.
(iii) There is a Specific fund: The accounting Treatment is as under:
`" Liabilites Side "" ""Rs"`
`" Prize Fund "" "1,00,000`
`underset("Add: Interest on Prize Fund Investments")("Prize Fund ")" "(10,000)/(1,10,000)`
`" Less: Prizes paid "" "(20,000)/(90,000)`
Note: Interest on Prize Fund Investments is not added to the Prize Fund Investments Account as the amount upon receipts is debited to either Cash or Bank Account. The assets side of Balance Sheet stands increased because of its impact on the receipts side of the Recipts and Payments Account. However if the amount of interest is also invested Prize Fund investments would increase by the amount of interest.
(Iv) there is No Specific Fund. Receipts from Cinema show Ticket would be shown on the credit side i.e., income side of the income and expenditure Account and expenses on Cinema Show would be shown on the debit side i.e., Expenditure side ot the income and Expenditure Account.
(V)
Note : Any expenditure of captial Nature out of specific Fund (e.g., expenditure on the construction of pavilion out of pavilion Fund) is shown on the assets side of the Balance sheet and an equal amount is transferred from that specific fund to Capital fund.