Q.From the following particulars of a Recreation Club as on 1.4.2024, calculate the Capital Fund as on that date: Building ₹80,000; Furniture ₹15,000; Cash in Hand ₹5,000; Cash at Bank ₹20,000; Outstanding Subscription ₹3,000; Investments ₹40,000; Outstanding Rent ₹2,000; Subscription received in advance ₹1,000.

Where the Capital Fund is not given directly, an opening Balance Sheet is prepared and the Capital Fund is found as the balancing figure. …

Step 1 — Total the assets.

Building 80,000 + Furniture 15,000 + Cash in Hand 5,000 + Cash at Bank 20,000 + Outstanding Subscription 3,000 + Investments 40,000 = ₹1,63,000.

Step 2 — Total the liabilities other than Capital Fund.

Outstanding Rent 2,000 + Subscription received in advance 1,000 = ₹3,000.

Step 3 — Capital Fund = Total Assets − Total Liabilities.

1,63,000 − 3,000 = ₹1,60,000.

Cross-check. Presenting the figures as a full opening Balance Sheet confirms the same answer:

Presenting the figures as a formal opening Balance Sheet (shown in the working) and confirming both sides total ₹1,63,000 is …

A frequent slip is including Outstanding Subscription as a liability instead of an asset (it is a debtor — money owed to the club), or forgetting to deduct the l …