question_answer

Show the following items in the balance sheet of a not-for-profit organisation:

(i) Donation received for auditorium construction	Rs. 7,00,000
(Expected total cost of the auditorium Rs. 10,00,000)
(ii) Expenditure on construction of auditorium	Rs. 5,50,000

Answer:

                                                Balance Sheet as at......

Liabilities		Amt (Rs.)	Assets	Amt (Rs.)
Capital Fund	-		Auditorium in Progress	5,50,000
(+) Transfer from Auditorium Fund	5,50,000	5,50,000
Auditorium Fund	-
(+) Donation Received	7,00,000
(-) Transfer to Capital Fund	(5,50,000)	1,50,000