An Organisation shows ₹90,000 Balance of a fund in its Income and Expenditure A/c which was 60% of total fund received during the year whereas 40% was capitalised. How much amount was shown in Receipt and Payment A/c?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹1,50,000.
90,000 fund is 60% of total fund
Total fund = 100%
Total fund = 90,000/60 x 100
= 1,50,000
40% of fund = 1,50,000 x 40/100
= 60,000 (shown on liability side)
Total fund of ₹1,50,000 is shown on the receipts side of receipts and payments account.