A Club has Opening balance of Rs.8,50,000 in Match fund. Donation received for match during the current year amounted to Rs. 4,25,000. Sale of match tickets amounted to Rs. 1,15,000. Match expenses incurred were Rs.14,00,000 Balance in the Match fund at the year end will be:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. (10,000)
A Match Fund is a special fund. Donations received for matches and the sale of match tickets are added to the fund, and match expenses are deducted from it, instead of passing through the Income and Expenditure Account.
Opening balance of Match Fund = Rs. 8,50,000
Add: Donation for match = Rs. 4,25,000
Add: Sale of match tickets = Rs. 1,15,000
Total = Rs. 13,90,000
Less: Match expenses = Rs. 14,00,000
Balance in Match Fund = Rs. 13,90,000 − Rs. 14,00,000 = Rs. (10,000), a debit (negative) balance
Because the expenses exceed the fund, the fund shows a negative balance of Rs. 10,000. Such a debit balance is not carried as a fund in the Balance Sheet; it is transferred to the debit side of the Income and Expenditure Account.
Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.
NCERT (Pre-rationalised edition): |