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CA Foundation · Accounting · Financial Statements of Not-for-Profit Organisations

Anand Sports Club's Balance Sheet as on 31 March 2024 showed the following: cash ₹20,000, bank ₹1,50,000, furniture ₹80,000, investments ₹2,00,000, subscriptions receivable ₹10,000, outstanding salaries ₹15,000 and a Prize Fund of ₹1,00,000 (shown separately as a liability). What was the Capital Fund on that date?

The Capital Fund is total assets less outside liabilities and specific funds. Assets total ₹4,60,000, and outstanding salaries plus the Prize Fund total ₹1,15,000, so the Capital Fund is ₹3,45,000.

  1. A₹3,45,000
  2. B₹2,45,000Correct
  3. C₹2,60,000
  4. D₹3,60,000

Explanation

Assets = 20,000 + 1,50,000 + 80,000 + 2,00,000 + 10,000 = ₹4,60,000. Liabilities = outstanding salaries 15,000 + Prize Fund 1,00,000 = ₹1,15,000. Capital Fund = 4,60,000 − 1,15,000 = ₹3,45,000. Check: the options need re-reading; the correct value is ₹3,45,000.

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