Please answer this question (i have also added the answer as i am unable to get the general fund right)
Answer given
On the liabilities side
General fund - 31,50,000
Tournament fund - 13,84,000
On the assets side
9% General fund investments - 20,00,000
Interest accrued on General fund investments - 60,000
8% Tournament fund investments - 8,00,000
Interest accrued on Tournament fund investments - 16,000
REGARDS
Solution:
BALANCE SHEET
as on 31st march 2021
Interest on general fund investment = 2000000 x 9% =180000
(-) Interest received = (120000)
Accrued Interest = 60000
2. Interest on tournament fund = 800000 x 8% = 64000
(-) Interest received = (48000)
Accrued interest = 16000
NOTE: In the given solution General fund is Rs 3150000, the reason might be they add life membership fees in GENERAL FUND. Usually it get added in CAPITAL FUND.
BALANCE SHEET
as on 31st march 2021
LIABILITIES | AMOUNT | ASSETS | AMOUNT |
General fund 3000000 | 9% General fund Investment | 2000000 | |
(+) Interest on general fund inv. 180000 | 3180000 | 8% Tournament Fund Investment | 800000 |
Tournament fund 1000000 | Accrued interest on GENERAL FUND | 60000 | |
(+) Interest on tournament fund Inv 64000 | Accrued interest on TOUNAMENT FUND | 16000 | |
(-) Tournament expenses (300000) | |||
(+) Sale of tickets 420000 | |||
(+) Donation for tournament 200000 | 1384000 | ||
Life membership fees | 150000 |
Interest on general fund investment = 2000000 x 9% =180000
(-) Interest received = (120000)
Accrued Interest = 60000
2. Interest on tournament fund = 800000 x 8% = 64000
(-) Interest received = (48000)
Accrued interest = 16000
NOTE: In the given solution General fund is Rs 3150000, the reason might be they add life membership fees in GENERAL FUND. Usually it get added in CAPITAL FUND.