Read the following information provided by a school and attempt Question:
The Trial Balance of a school as on 31.3.2017 is
|
Debit Balance |
Amount (₹) |
Credit Balance |
Amount (₹) |
|
Building |
6,25,000 |
Admission fees |
12,500 |
|
Furniture |
50,000 |
Tuition fees received |
5,00,000 |
|
Library books |
1,50,000 |
Creditors for supplies |
15,000 |
|
Investment @12% (1.4.16) |
5,00,000 |
Rent for the school hall |
10,000 |
|
Salaries |
5,00,000 |
Miscellaneous receipts |
30,000 |
|
Stationery |
40,000 |
Legacies (general) |
3,50,000 |
|
General expenses |
18,000 |
General fund |
10,00,000 |
|
Sports expenses |
15,000 |
Donation for library books |
62,500 |
|
Cash at bank |
1,00,000 |
Sale of old furniture |
20,000 |
|
Cash in hand |
2,000 |
|
|
|
|
20,00,000 |
|
20,00,000 |
Additional Information:
The book value of the furniture sold was ₹50,000 on April 1, 2016 was sold for ₹20,000.
Excess of Sports Expenses over Sports Funds will be:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Debited to Income and Expenditure A/c.
Excess of Sports Expenses over Sports Funds will be Debited to Income and Expenditure A/c.
In the context of sports expenses and sports funds, the Sports Expenses represent the costs incurred for sporting activities, and Sports Funds represent the amount set aside for these activities (often from donations or fund-raising). When the sports expenses exceed the sports funds, this indicates a deficit or a shortfall. The excess amount is a loss that needs to be accounted for in the Income and Expenditure Account, as it affects the financial results of the period.