Read the following information and answer the questions.

ABC Welfare Society is working on the construction of building (sports complex for indoor games). It has provided the following information on 1st April, 2020.

Capital fund = ₹6,50,000
Building fund = ₹7,00,000
Donation received for building = ₹5,00,000
Poor girls marriage fund = ₹2,00,000
Sports fund = ₹1,00,000
At the end of the year, building is completed by incurring ₹15,00,000.
Expenses on sports ₹60,000
Expenses on Poor girls marriage= ₹1,30,000

At the end of the year society closed the poor girls marriage fund.

What will be the capital fund at the end of the year?

₹19,20,000

The correct answer is option 1- ₹19,20,000.

Opening capital fund balance = 6,50,000
Add: transfer from building fund = 12,00,000
Add: Transfer from poor girls marriage fund = ₹70,000
Balance at the end of the year = 19,20,000

** Poor girls marriage fund opening balance = 2,00,000
Less: Expenses 1,30,000
Closing balance = 70,000
As it is closed so 70,000 will be added to the capital fund.

**  Building fund = ₹7,00,000
Add: donation = ₹5,00,000
TOTAL FUND = ₹12,00,000
Expenditure incurred is ₹15,00,000 and building is completed so the whole balance of ₹12,00,000 will be transferred to capital fund and building fund become nil.