Read the Paragraph given below carefully and answer the following 5 questions. (Q No 1) Dr. Ashima Mittal is a qualified M.D. doctor got voluntary retirement at the age of 50 years from a renowned hospital. She was residing in a flat of a wide apartment which is surrounded by a slum which is inhabited by economically weaker strata of the society. As the people in that area were not aware about importance of health care, a widespread ailment had been persistently prevailing. Ashima met with some of the well-off people of apartment and decided to open a dispensary named as `Mohalla Clinic’ to provide them cost free medical assistance and make them aware about hygienic living, physical fitness, and economic balance diet. Many of the apartment members agreed to it. She approached health department of the town with her proposal which was accepted and an initial one time grant of ₹.2,00,000 was sanctioned immediately for purchase of medical equipment and test kits for pathological tests. 10 members of the apartment contributed ₹ 20,000 each as lifetime subscription to the clinic. Ashima decided to charge ₹10 as one time registration fee from patients. Apart from above Ashima made following transactions for first year: Sl No Particulars Amount (in Rs) 1 Purchased Equipment 1,20,000 2 Purchased Medicines 95,000 3 Purchased Furniture 10,000 4 Rent Paid 12,000 5 Fee Received for medical Tests 45,000 6 Honorarium paid to Yoga Teacher 35,000 7 Honorarium paid to physiotherapist and sports teacher 38,000 Ashima informed that during the first year 10,500 patients were registered for treatment and for other services.

Lifetime subscription paid by 10 members will be posted in which of the following account?

Expenditure side of Income and Expenditure Account Liability side of closing Balance Sheet Income side of Income and Expenditure Account Assets side of closing Balance Sheet

Liability side of closing Balance Sheet

Life Membership fees is capitalised and is shown in the Liability side of the Balance Sheet.