Entrance Fees received amounted to Rs 40

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Entrance Fees received amounted to Rs 40000, 30% of which is to be capitalised. How much amount will be shown in Income and Expenditure Account?

Options:

₹40000

₹12000

₹28000

None of these

Correct Answer:

₹28000

Explanation:

40000 X 70%= ₹28000 will be shown in Income & Expenditure Account and ₹12000 will be shown in liability.