How the following items of prize fund will be shown in balance sheet:
|
Details |
Amt. Dr. |
Amt. Cr. |
|
Prize fund |
|
₹80,000 |
|
Prize fund investment |
₹80,000 |
|
|
Income from prize fund investment |
|
₹8,000 |
|
Prizes awarded |
₹6,000 |
|
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Liabilities: Prize fund ₹82,000 ; Assets: Prize fund investment ₹80,000
Prize fund is a specific fund: income from its investments is added to it and prizes awarded are taken out of it. The investments stay on the assets side at cost.
Prize fund = ₹80,000 + ₹8,000 − ₹6,000 = ₹82,000 (liabilities)
Prize fund investment = ₹80,000 (assets)
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):
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