Forums
Back
NPO
Accountancy
Can you tell me what will be the value of Honorarium to the secretary in Closing Balance sheet. Will it be Rs 200 or Rs 600 ( 400 + 200 ) ? The question mentions "The Honorarium to the secretary will be increased by Rs 200 for the year ended 31st March 2021" What is the O/S Honorarium for 31st March 2021 ?
Answers (8)
Hello my friend I think it would be 200 because the payment is given in this year's receipts and payments a/c also it's not mentioned that it relates to which year i. e. whether this year or 2020.....I have assumed that it's of this year and 400 is paid now if it increases to 600 only 200 is outstanding so it would be 200 on the liabilities side Feel free to correct me if I'm wrong
Upashya Das
Hello my friend I think it would be 200 because the payment is given in this year's receipts and payments a/c also it's not mentioned that it relates to which year i. e. whether this year or 2020.....I have assumed that it's of this year and 400 is paid now if it increases to 600 only 200 is outstanding so it would be 200 on the liabilities side Feel free to correct me if I'm wrong
I know but in the answer it is given Rs 600 for O/S Honorarium in the closing Balance sheet. And both the sides of the Balance sheet are also matching when we put O/S Hon. as 600 in the Liabilities side
Here, we have to assume that honorarium of previous year is paid in the current year. So, actually for current year, 400 is payable to the secretary and now the adjustment is for 200 , therefore outstanding honorarium beacomes 600. However, in ca exam, everything will be paid down clearly, any assumption made by us can be written as a note too
Jaswanth P
Here, we have to assume that honorarium of previous year is paid in the current year. So, actually for current year, 400 is payable to the secretary and now the adjustment is for 200 , therefore outstanding honorarium beacomes 600. However, in ca exam, everything will be paid down clearly, any assumption made by us can be written as a note too
But both the sides of the balance sheet will not match if we don't put O/S Honorarium as Rs 600
CA Suraj Lakhotia Admin
The question in the book you are referring to is incomplete. Refer to the study material.
Yes sir "2019" is missing on the side of Honorarium. I checked it yesterday from the icai book. But couldn't delete it as delete option is not available. Thank you sir
Your Reply