How will you deal with the following items while preparing for the Bombay Women Cricket Club, its Income and Expenditure Account for the year ending 31st March 2021, and its Balance Sheet on the same date?
Donation for the Pavilion construction ₹12,25,000
Expenditure incurred ₹10,80,000
Total estimate ₹25,00,000.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹1,45,000 to be shown on the Liability side of the Balance Sheet.
Donation for the Pavilion construction = ₹12,25,000
Less : Expenditure incurred = ₹10,80,000
Amount on liability side = ₹1,45,000
Thus, ₹1,45,000 to be shown on the Liability side of the Balance Sheet.