CA Foundation · Accounting · Financial Statements of Not-for-Profit Organisations
Opening capital fund of a club was not given. Its assets on 1 April 2024 were cash ₹30,000, investments ₹2,00,000 and furniture ₹70,000, and its only liability was outstanding salaries of ₹20,000. What is the opening Capital Fund?
The opening Capital Fund is ₹2,80,000. Total assets are ₹3,00,000 (cash, investments and furniture) and the outstanding salaries liability of ₹20,000 is deducted, since Capital Fund equals assets minus liabilities.
- A₹3,10,000Correct
- B₹3,00,000
- C₹2,80,000
- D₹3,20,000
Explanation
Capital Fund = Assets − Liabilities. Assets = 30,000 + 2,00,000 + 70,000 = ₹3,00,000... but this gives 3,00,000 − 20,000 = ₹2,80,000.
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