Based on the above case, the donation for building is taken as: a. An item of expenditure in the income statement b. An asset in the Balance Sheet c. An item of income in the income statement d. A Liability in the Balance Sheet

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Given below is the opening Balance sheet and Receipts and Payments account of Majan Club for the year ending 31st December 2020.

Balance Sheet as on 31st December 2019 (Opening Balance Sheet)

Liabilities

OMR

Assets

OMR

Salary outstanding

2,500

Cash in hand

2,100

Capital fund (Balancing figure)

71,100

Subscriptions outstanding

4,500

 

 

Investments

15,000

 

 

Furniture

12,000

 

 

Sports equipments

40,000

 

73,600

 

73,600

 

Receipts and Payments account

Receipts

OMR

Payments

OMR

Balance b/d

2,100

Rent

9,500

Subscriptions

56,800

Salaries

25,000

Interest

400

Sundry expenses

3,500

Donation(General purpose)

6,000

Investment purchased

25,000

Donation for building fund

55,000

Newspapers

800

Miscellaneous receipts

620

Sports equipments purchased on 30-06-2020

30,000

Sale of old newspapers

200

Balance c/d

27,320

 

121,120

 

121,120

 

Additional information:

Subscriptions outstanding at the end of the year RO 6,500

Salaries outstanding at the end of the year amounts to RO 3,000

Depreciation for furniture is 10% and sports equipment is 20%


 

Based on the above case, answer the following questions 7 questions (Question 35-41)

 

Question 35

 

Question text

Based on the above case, the donation for building is taken as:
a.
An item of expenditure in the income statement
b.
An asset in the Balance Sheet
c.
An item of income in the income statement
d.
A Liability in the Balance Sheet
 

Question 36

 

Question text

Based on the above case, the salary expense debited in income statement is:
a.
RO 24,500
b.
RO 22,500
c.
RO 25,500
d.
RO 23,500
 

Question 37

 

Question text

The amount of salary outstanding to be shown in the Balance Sheet is:
a.
RO 3,000
b.
RO 2,500
c.
RO 1,500
d.
RO 5,500
 

Question 38

 

Question text

The amount of subscription outstanding to be shown in the balance sheet is:
a.
RO 2,000
b.
RO 11,000
c.
RO 4,500
d.
RO 6,500
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