What will be the treatment of the follow

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

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

Options:

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

"10,000 Liabilty Side 11,000 Asset side"

"21,000 Liabilty Side "

21,000 Asset side

Correct Answer:

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

Explanation:

10000 on assets side