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Home Questions DCGX88MACZ
Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Match the following-

List 1 List 2
A) Building fund 10,00,000,
expenditure on construction of building 12,00,000,
building work was completed during the year		 I) Expenditure amount and balance of fund
are added to capital fund
B) Building fund 10,00,000,
expenditure on construction of building 6,00,000,
building work was completed during the year		 II) Only expenditure amount of fund will be added
to capital fund and balance will continue as liability
C) Building fund 10,00,000,
expenditure on construction of building 6,00,000,
building work is not completed yet		 III) Full amount of fund will be shown as liability
without adding or deducting anything
D) Building fund 10,00,000 IV) Fund will be used by transferring the expenditure
amount equal to building fund to the capital fund

Choose the correct answer from the options given below.

Options:

A-IV, B-I, C-II, D-III

A-IV, B-II, C-I, D-III

A-IV, B-III, C-II, D-I

A-I, B-IV, C-II, D-III

Correct Answer:

A-IV, B-I, C-II, D-III

Explanation:

The correct answer is option 1- A-IV, B-I, C-II, D-III.

List 1 List 2
A) Building fund 10,00,000,
expenditure on construction of building 12,00,000,
building work was completed during the year		 IV) Fund will be used by transferring the expenditure
amount equal to building fund to the capital fund
B) Building fund 10,00,000,
expenditure on construction of building 6,00,000,
building work was completed during the year		 I) Expenditure amount and balance of fund
are added to capital fund
C) Building fund 10,00,000,
expenditure on construction of building 6,00,000,
building work is not completed yet		 II) Only expenditure amount of fund will be added
to capital fund and balance will continue as liability
D) Building fund 10,00,000 III) Full amount of fund will be shown as liability
without adding or deducting anything

 

* A) Building fund 10,00,000, expenditure on construction of building 12,00,000, building work was completed during the year- If building fund and expenditure on construction is given which is completed during the year then only expenditure & balance will be added to capital fund. If the expenditure is more than building fund then the excess of expenditure is shown as expenses in the income and expenditure account.

* B) Building fund 10,00,000, expenditure on construction of building 6,00,000, building work was completed during the year- If building fund and expenditure on construction is given which is completed during the year then only expenditure & balance will be added to capital fund.

* C) Building fund 10,00,000, expenditure on construction of building 6,00,000, building work is not completed yet- If building fund and expenditure on construction is given which is not completed during the year then only expenditure will be added to capital fund and deducted from the building fund. On the assets side work in progress is shown with this expenditure amount.

* D) Building fund 10,00,000- If only building fund is given it is shown as liability in the balance sheet.

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