Q.A sports club maintains a Match Fund. The following particulars are available for the year ended 31.3.2025: Match Fund balance as on 1.4.2024 ₹25,000; Donations received for the Match Fund during the year ₹18,000; Match expenses incurred during the year ₹30,000. Show how these items will appear in the Income and Expenditure Account and the Balance Sheet of the club.

Additions to, and expenses of, a specific fund like a Match Fund are kept out of the Income and Expenditure Account and simply adjusted against the fund itself.

Step 1 — Total fund available.

Match Fund b/d (1.4.2024) 25,000 + Donations for Match Fund received during the year 18,000 = ₹43,000 available for match expenses.

Step 2 — Compare with the expense incurred.

Match expenses incurred during the year = ₹30,000, which is less than the ₹43,000 available. Since the specific fund is sufficient to cover the expense, the entire ₹30,000 is deducted from the fund itself; none of it is charged to the Income and Expenditure Account, and the donations of ₹18,000 are never credited to the Income and Expenditure Account either.

Step 3 — Closing balance of the fund.

Closing Match Fund = 43,000 − 30,000 = ₹13,000, carried forward as a liability in the Balance Sheet as on 31.3.2025.

Cross-check via a Match Fund Account.

Ledger-account cross-check shown in the working — the Match Fund Account's balancing figure must equal the amount ar …

A common error is to credit the ₹18,000 donation to the Income and Expenditure Account and separately debit the full ₹30,000 match expense to it — both are wrong, since a specific fund's own income and expenses are adjusted only against the fund, not rou …