Could you tell how to solve this question?
Solution
Balance sheet extract
Balance sheet extract
As at 31st March, 2022
Working note
| Liabilities | Amount | Asset | Amount |
| Tournament fund 4,00,000 | 6% tournament fund investments | 4,00,000 | |
| Add: subscription 2,00,000 | 8% tournament fund investments | 2,00,000 | |
| Add: grants received 1,00,000 | |||
| Add: interest received from tournament fund investments 25,000 | |||
| Add: o/s tournament und investments 7000 | |||
| Less: tournament expenses 2,70,000 | 4,62,000 |
1) tournament interest on 6% fund investments = 6% of 4,00,000
= Rs 24,000
Tournament interest on 8% fund investments for 6 months = 8% of 2,00,000 × (1/2)
8000
Total interest = 24000 + 8000
32000
O/s interest = 32000 - 25000
7000
= Rs 24,000
Tournament interest on 8% fund investments for 6 months = 8% of 2,00,000 × (1/2)
8000
Total interest = 24000 + 8000
32000
O/s interest = 32000 - 25000
7000