Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 18 - No. 9)
Which of the following correctly represents the relationship between accumulated fund, surplus and deficit for a club?
Accumulated Fund (Opening) + Surplus = Accumulated Fund (Closing)
Accumulated Fund (Opening) - Deficit = Accumulated Fund (Closing)
Accumulated Fund (Opening) + Deficit = Accumulated Fund (Closing)
Accumulated Fund (Opening) - Surplus = Accumulated Fund (Closing)
Explanation
A surplus adds to the opening balance while a deficit subtracts from the opening balance to determine the closing balance of the accumulated fund.
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