The balance of Match Fund = ₹1,000
Sports expenses = ₹5,000
Sale of match tickets = ₹3,000
How will it be shown in the accounts of non profit organisation?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹1,000 on Expenditure Side.
Match fund = 1,000
Add: Sale of match tickets = 3,000
= (1,000 + 3,000)
= 4,000
Less: Sports expenses = 5,000
= (4,000 - 5,000)
= (-1000)
As ₹1,000 is negative or expenses are more than income, so it is shown as expense on Expenditure side of income and expenditure account.