8. Endowment Fund
Endowment fund is a fund that arises from a gift. It is relatively large amount of money advanced to the concern and now placed in fixed deposits or invested in securities. The endowment fund is a capital receipts and shown on the liability side of the balance sheet. However, the income from the investment is a revenue receipts and appears on the credit side of income and expenditure account.
9. Sale of old Assets
The profit and loss on sale of old assets must be shown in income and expenditure account. The amount received from sale of an asset is not included in income and expenditure account. The book value of the assets sold is deducted from the relevant assets in the balance sheet.
10. Sale of Newspaper and Magazines
Amount received from the sale of newspapers and magazines is a revenue item i.e. they are sold every year or month or many times within a year. It is shown on the credit side of income and expenditure account.
11. Sale of Sport Materials
Sale of sport materials is also treated as a revenue income and shown on the credit side of income and expenditure account.
12. Special Fund
Specific fund like prize distribution fund, tournament fund etc are known as special fund and shown on the liability side of balance sheet.
Endowment fund is a fund that arises from a gift. It is relatively large amount of money advanced to the concern and now placed in fixed deposits or invested in securities. The endowment fund is a capital receipts and shown on the liability side of the balance sheet. However, the income from the investment is a revenue receipts and appears on the credit side of income and expenditure account.
9. Sale of old Assets
The profit and loss on sale of old assets must be shown in income and expenditure account. The amount received from sale of an asset is not included in income and expenditure account. The book value of the assets sold is deducted from the relevant assets in the balance sheet.
10. Sale of Newspaper and Magazines
Amount received from the sale of newspapers and magazines is a revenue item i.e. they are sold every year or month or many times within a year. It is shown on the credit side of income and expenditure account.
11. Sale of Sport Materials
Sale of sport materials is also treated as a revenue income and shown on the credit side of income and expenditure account.
12. Special Fund
Specific fund like prize distribution fund, tournament fund etc are known as special fund and shown on the liability side of balance sheet.
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