Match List – I with List – II.

Choose the correct answer from the options given below :

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

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

* Gain on sale of sports material- Income side of Income and Expenditure A/c.  It is a routine income activity for the organisation so it is credited to income and expenditure account.

* Donation for Library - Liability side of Balance Sheet. If donation received is to be utilised to achieve specified purpose, it is called Specific Donation. The specific purpose can be an extension of the existing building, construction of new computer laboratory, creation of a book bank, etc. Such donation is to be capitalised and shown on the liabilities side of the Balance Sheet irrespective of the fact whether the amount is big or small. The intention is to utilise the amount for the specified purpose only.

* Grass seeds purchased- Expenditure side of Income and Expenditure A/c. It is a recurring expenditure for the organisation so it is debited to the income and expenditure account.

* Accrued Subscription- Assets side of Balance Sheet. Accrued Subscription is an income for the organisation that is not received so it is an asset of the organisation.