What will be the treatment of the following items in the balance sheet of a NPO?

Prize Fund - ₹12,000,
Interest on prize fund investment- ₹2,000
Prize paid - ₹3,000
Prize Fund Investment - ₹10,000

₹11,000 on the Liability Side and ₹10,000 on the Asset side

The correct answer is option 1- ₹11,000 on the Liability Side and ₹10,000 on the Asset side.

Prize Fund Investment - ₹10,000

Prize fund = 12,000
Add: Interest  = 2,000
Less: Prize = 3,000
                 = (12,000 + 2,000 - 3,000)
                  = 11,000

11,000 is the closing fund which is shown on liability side of balance sheet. Prize fund investment is shown on assets side.