Your Cart

NOT FOR PROFIT ORGANISATION ( NPO)

 

Q.1    Identify which of the following is NPO?

  1. i) Panchsheel club.
  2. ii) Stephen’s Hospital, Delhi.

iii)      Maharaja Agrasen Hospital

  1. iv) Delhi Public School
  2. v) Apollo Hospital Library
  3. vi) Delhi Public Library

vii)     Gymkhana Club

viii)    Golf Club

  1. ix) Reliance Industries Ltd.
  2. x) Gurudwara Bangal Saheb
  3. xi) Birla Mandir

xii)     Infosys Ltd.

Q.2    From the following information pertaining to Jahanpanah Club, New Delhi, prepare a receipt and payment A/c for the year ending 31st March, 2014.

  April 1st, 2013 March 31st , 2014
Cash in Hand on

Cash at Bank

Subscription collected for

2012-13                              75,000

2013-14                       11,00,000

2014-15                            30,000

Donation Received

Donation Received for Pavilion

8% investments purchased on 1/4/2013

Purchase at Refreshments

Rent Paid

Entrance Fees Received

Hanararium to Secretary

Interest on 8% Investment

Furniture Purchased

Sale of Old Furniture

Sports Material Purchased

Sale of Refreshment

Salaries and Wages

Sports Expenses (including outstanding

outstanding Cash in Hand on March,

Cash in Hand on March, 31,2014

Depreciate Furniture @ 10%

37,500

 

 

 

 

11,95,000

 

 

 

 

 

 

 

 

 

30,000

 

 

25,000

 

 

 

2,40,00

 

 

 

 

1,50,000

10,00,000

10,00,000

60,000

30,000

90,000

50,000

40,000

1,00,000

20,000

4,00,000

1,50,000

3,70,000

1,25,000

 

31,000

 

Q.3    Prepare income and Expenditure Account from the above prepared Receipt and Payment Account. Calculation of the cost of consumable items (stationery / medicine etc.) Format for calculating consumption of consumable items [with imaginary figures)

Particulars `
Amount : Paid to Creditors During the Year

Add : Outstanding (Creditors) at the end

Less : Outstanding (Creditors) at the Bag

Add : Advance to Creditors at the Bag

Less : Advance to Creditors, at the end

Total Credit Purchases During the Year

 

Add : Cash Purchases if any

Total Purchases During the Year

Add : Opening Stock

Less : Closing Stock

Consumption During the year (To be shown to expense in income and expenditure A/c)

60,000

12,000

7,000

5,000

3,000

67,000

 

13,000

80,000

30,000

(10,000)

1,00,000

 

Q.4    From the following calculate amount to be shown in Income and Expenditure A/c

  April 1, 2013 March 31, 2014
Stock of Stationery

Creditors for Stationery

24,000

43,000

18,000

32,400

Amount : paid for stationery during the year 2013-14 `1,50,000.

Also show how the above will be selected while preparing final accounts.

PQ.1  On the basis of the following information, calculate amount that will appear against the item ‘stationery used’ in the Income and Expenditure Account for the year ended

  March 31, 2014
Stock of Stationery on 1st April 2013

Creditors for Stationery as at 1st April 2013

Amount Paid for Stationery during the year ended 31st March 2014

Stock of Stationery as at 31st March 2014

Creditors for stationery as at 31st March 2014

36,000

76,800

4,20,000

69,600

72,000

Also show how the above will be selected in final accounts.

Q.5    From the following information of a not for profit organization, how the ‘sports material’ items in the ‘income and expenditure account’ for the year ending
31st March 2014 and the Balance Sheet as at 31st March 2013 and 31st March 2014.

  April 1, 2013 March 31, 2014
Stock of Sports Material

Creditors for Sports Material

Advance to Supplies of sports Material

6,600

23,400

45,000

17,400

27,600

75,000

Payment to supplies of sports material during the year was `3,60,000 there were not cash purchases.

PQ.2  Calculate what amount will be posted to be Income and Expenditure Account for the year ended 31st March 2014.

  March 31, 2014
Stock of Stationery on 1st April 2013

Creditors for Stationery on 1st April 2013

Advance Paid for Stationery carried forward from 2012-13

Amount Paid for Stationery during the year

Stock of Stationery on 31st March 2014

Creditors for Stationery on 31st March 2014

Advance Paid for Stationery on 31st march 2014

1,800

1,200

120

6,480

300

780

180

 

PQ.3  Show the above items in final accounts.

Q.6    From the following information, calculate the amount to be shown as consumption of sports material:     

  March 31, 2014
Amount Paid to Creditors of Sports Material

Opening Stock of Sports Material

Closing Stock of Sports Material

Advance to Creditors in the Beginning

Advance to Creditors in the End

Creditors for Sports Material in the Beginning

Creditors for Sports Material in the end

Cash Purchases of Sports Material

1,22,000

40,000

50,000

4,000

6,000

14,000

30,000

25,000

 

PQ.4  Show the above in final accounts.

 

 

Q.7    On the basis of information given below, calculate the amount of medicines to be debited to the Income and Expenditure A/c of Nirvana Hospital for the year ended 31st March, 2014.

  April 1, 2013 March 31, 2014
Stock of Sports Medicines

Creditors for Sports Medicines

1,40,000

12,80,000

1,65,000

17,60,000

Medicines purchased during the year were `84,00,000.

PQ.5  On the basis of the following information, calculate the amount of stationery to be debited to the Income and Expenditure A/c of Shubham Hospital for the year ended 31st March, 2014.

  April 1, 2013 March 31, 2014
Stock of Stationery

Advance to Suppliers

Creditors for Stationery

40,000

8,000

16,000

35,000

11,000

18,000

Stationery Purchased during the year `3,50,000.

Q.8    Prepare Income and Expenditure Account for the year ended 31st March 2014 from the following Receipts and Payments Account.

Receipts (`) Issues (`)
To Opening Balance

To Subscriptions

To Sale of Old Furniture

(book value 8,000
To Sale of Investment

To donations

2,500

60,000

6,500

 

8,000

5,000

 

82,000

By Salaries

By Payment to Creditors of Stationery

By Creditors of Medicines

By Furniture Purchases

By Defence Bonds

By Bicycle Purchased

By Closing Balance

7,000

15000

11,000

20,000

10,000

3,000

16,000

82,000

 

  April 1, 2013 March 31, 2014
Stock of Stationery

Creditors for Stationery

Advance to Creditors

9,000

15,000

7,000

7,000

11,000

15,000

 

Q.9    In 2014-14, salaries Paid amounted to `2,80,000. Ascertain the Income and Expenditure Account for the year ended 31st March, 2014 from the following information :

  March 31, 2014
Prepaid Salaries on 31st March,2 0 13

Prepaid Salaries on 31st March, 2014

Outstanding Salaries on 31st March, 2013

Outstanding Salaries on 31st March, 2014

30,000

22,000

40,000

65,000

 

PQ.6  During 2013-14, the miscellaneous expenses paid by Global Club were `12,000. Find out the expenses chargeable to Income and Expenditure Account for the year ended 31st March 2014.

          Additional Information :

  April 1, 2013 March 31, 2014
Prepaid Expenses

Outstanding Expenses

3,500

2,500

4,200

3,400

 

Calculation of the Amount of Income to be Credited to Income and Expenditure Account.

Q.10  How will you deal with the following while preparing Income and Expenditure Account of a club for the year ended 31st March, 2014.

  April 1, 2013 March 31, 2014
Prepaid Expenses

Advance Locker Rent

3,500

1,500

4,800

900

Locker Rent Received during the year 2013-14 `45,000.

 

PQ.7  How will you deal with the following while preparing Income and Expenditure Account of City Club for the year ended 31st March, 2014.

  April 1, 2013 March 31, 2014
Gym Charges Accrued

Advance Gym Charges

7,500

3,600

10,200

4,800

Gym charges Received during the year 2014-14 `68,000.

Also show the treatment of the above items in the final accounts.

Q.11  From the following Receipts and Payment Account of Central Delhi Club and from the given additional information, ascertain the expenditure on account of Salaries for the year ending 31st March 2014 and show the Salaries item in the income and Expenditure Account and Balance sheet as at 31st March, 2013 and 31st March, 2014

          An Extract of Receipts and Payments A/c for the year ended 31st March 2014.

By salaries

2012-13

2013-14

2014-15

Additional Information

i)    Salaries outstanding on 31st March 2013

ii)   Salaries outstanding on 31st March 2014

iii)  Salaries paid in advance on 31st March 2013

 

60,000

8,40,000

54,000

 

75,000

1,35,000

30,000

 

PQ.8  From the following Receipts and Payment Account of North-East Club and from the additional information, ascertain the expenditure on account of salaries for the year ending 31st March, 2014 and show the Rent item in the Income and Expenditure Account and Balance Sheet as at 31st March, 2013 and 31st March, 2014.

          An Extract of Receipts and Payments A/c for the year ending 31st March 2014.

By salaries

2012-13

2013-14

2014-15

Additional Information

i)    Rent outstanding on 31st March 2013

ii)   Rent outstanding on 31st March 2014

iii)  Rent paid in advance on 31st March 2013

 

15,000

1,55,000

20,000

 

26,000

32,000

18,000

 

Calculation of Subscription

Q.12  From the following information, calculate the amount of subscription to be credited to the Income and Expenditure Account for the year 2013-14.

i)    Subscription Received during the year

Subscription not year received during the

year i.e. due but not received

ii)   Subscription received during the year

Subscription due but not received

(Outstanding/Accrued) at the end of the year

Subscription Due in the beginning

iii)  Subscription received during the year

Subscription due (outstanding) at the end of the year

Subscription due (outstanding) at the beginning of the year

Subscription Received in Advance in the beginning

Subscription Received in Advance at the end

iv)  Subscription received during the year

1st April 2013         Subscription in Arrears

Subscription Received in Advance

31st April 2014       Subscription in Arrears

Subscription Received in Advance

v)   Sports Club of Delhi Received in 2013-14 4,00,000 as subscription.

Further information is :

Subscription due but into received (on 1-4-2013)

Subscription due to but not received on 31-3-2014

Subscription received in advanced on 01-4-2013

Subscription received in Advanced on 31-03-2014

90,000

10,000

 

1,10,000

 

16,000

26,000

1,26,000

15,000

11,000

8,000

32,000

60,000

10,000

6,000

10,000

6,000

 

 

25,800

16,500

21,000

14,000

vi)   From the following information, calculate the amount of subscription outstanding       for the year ending 2013-14. North-East Delhi Club has 100 members each paying       annual subscription of 10,000. The receipts and payments received as 5,70,000.       The following additional information is also provided
1.   Subscription outstanding on 31-3-2013

2.   Subscription received in advance on 31-3-2014

3.   Subscription received in advance on 31-3-2013

Assume outstanding subscription of provision year is received in current year.

75,000

65,000

34,000

vii)  From the following extracts of Receipts and Payment Account and additional       information, you are required to calculate the income from subscriptions for the       year ending December 2014 and show them in the Income and Expenditure       Account, and the Balance sheet of a Club.

An extract of receipts and payments A/c for the year ending 31stDecember, 2014.

 

Receipts (`) Payments (`)
To Subscription

2013                 80,000

2014                 3,60,000

2015                 72,000

 

 

 

 

4,92,000

   

          Information

1.   Subscription outstanding on 31-3-2013

2.   Subscription outstanding on 31-12-2014

3.   Subscription received in advance on 31-12-2013

72,000

80,000

72,000

 

 

 

viii) From the following information, calculate the outstanding on 31stMarch, 2014. A       club has 2,000 members each paying on annual subscription of `500. The       Receipts and Payments Account for the year showed a sum of `8,00,000 received       as subscription. The following additional information is provided :
1.   Subscription outstanding on 31-3-2013

2.   Subscription received in advance on 31-3-2014

3.   Subscription received in advance on 31-3-2013

1,80,000

2,40,000

3,20,000

 

ix)   Subscription received during the year ended March 31, 2014 by executive club       were as under :

2012-13                6,000

2013-14           1,86,000

2014-15                4,000

1,86,000

The club has 1000 members each paying @ `200 P.G. subscription outstanding on March 31, 2013 were `16,000. Calculate the amount of subscription to be shown as income in the Income and Expenditure Account for the year ended March 31, 2014 and show the relevant data in the Balance Sheet as at 31st March 2013 and 2014.

x)    Extracts of Receipts and Payment Account for the year ended March 31, 2014 are       given below :

 

Receipts (`) Payments (`)
To Subscription

2012-13              12,000

2013-14           3,84,000

2014-15           10,000

 

 

 

 

4,06,000

   

 

Information

 

1.   Subscription outstanding as on 31-3-2013

2.   Total subscription outstanding as on 31-12-2014

3.   Subscription received in advance as on 31-3-2013

72,000

80,000

72,000

 

Calculate the amount of subscription to be shown on the income side of Income and Expenditure A/c and show the relevant data in the final account.

 

 

 

xi)   From the following, find out the amount of subscription to be included in the       Income and Expenditure Account for the year ended 31stMarch, 2014.

Subscriptions received during the year 2013-14 were :

2012-13             6,000

2013-14           90,000

2014-15           9,000

         

Subscription outstanding as at 31-3-2013 were `10,500 out of which `1,500 were considered to be irrecoverable. On the same date, subscriptions received in advance for 2013-14 were `6,000. Subscriptions still outstanding as at 31st March, 2014 amounted to `18,000.

Also prepare Subscription Account.

 

xii)  From the following information, calculate the amount of subscription to be credited      to the Income and Expenditure Account for the year 2013-14.
1.   Subscription received during the year

2.   Subscription outstanding on 31-3-2013

3.   Subscription outstanding on 31-3-2014

4.   Subscription received in advance on 31-3-2013

5.   Subscription received in advanced on 31-3-2014

2,50,000

1,00,000

30,000

40,000

45,000

Subscription of 8,000 is still in arrears for the year 2013-14.

 

Fund and Accounting

 

Q.13  Show the following information statements of a Not-for-Profit Organisation :

Details `
Donations Received for Match Fund

Sale of Match Tickets

Match  Expenses

 

1,80,000

70,000

40,000

 

Q.14  Show the following information statements of a Not-for-Profit Organisation :

Details `
Match Fund

Donations for Match Fund

Sale of Match Tickets

Match  Expenses

8,00,000

4,80,000

7,20,000

16,00,000

 

 

Q.15  Show the following information statements of a Not-for-Profit Organisation :

Details `
Match Fund

Donations for Match Fund

Sale of Match Tickets

Match  Expenses

8,00,000

4,80,000

7,20,000

21,50,000

 

Q.16. Show how will you deal with the following items while preparing the Income and Expenditure Account for the year ending on 31st March 2014 and a Balance Sheet as at that date in each of the following alternative cases.

  `
i)        Prizes awarded

ii) a) Prize Fund as on 31st March, 2013

b) Donation for Prizes Received during the year

c) Prizes awarded

iii) a) Sports Fund

b) Sports Fund Investments

c) Income from Sports Fund Investments

d) Donations for Sorts Fund

e) Sports Prizes Awarded

f) Expenses on Sports Events

iv) a) Prizes awarded

b) Prize Fund as on 31st March 2013

c) Donations for Prizes Received during 2013-14

d) 9% Prize Fund Investments as on 31-3-2013

e) Interest Received on Prize Fund Investments

v)  Receipts from Cinema Show Tickets    Expenses

vi) Expenditure on construction of Pavilion.

The construction work is in progress and not yet

Completed. Pavilion Fund as on 31-3-2013

Donation for Pavilion Received on 15-11-2013    Capital Fund as at 31-3-2013

vii)     Prizes Awarded

Prize Fund as at 31-3-2013

Donations For Prizes Rec. during the year 13-14

10% Prize Fund Investments as at 31-3-2013

Investment on Prize Fund Investments

viii) Expenditure on Construction of Building

The Construction work is in progress and has

not yet completed

Opening Building Fund

Opening 10% Building

Fund Investment

Donation For Building Received

Interest Received on Building Fund Investment

Opening Capital Fund

ix) Sports Fund as 1st April, 2013

Sports Funds Investments

Interest on Sports Fund Investment

Donation for Sports Fund

Sport Prizes Awarded

Expenses on Sports Events

General Fund

General Fund Investments

Interest on General Fund Investment

15,000

1,20,000

21,600

22,000

70,000

70,000

8,000

30,000

20,000

8,000

35,000

2,80,000

50,400

2,80,000

18,900

18,000

9,800

24,00,000

32,00,000

40,00,000

80,000

34,000

5,600

24,000

24,000

2,400

21,00,00

 

28,00,000

 

 

28,00,000

35,00,000

2,80,000

63,00,000

8,00,000

8,00,000

80,000

3,20,000

2,40,000

80,000

16,00,000

16,00,000

16,00,000

 

  1. From the following Receipts and Payments Account, prepare Income and Expenditure Account for the year ended 31st March, 2014.
Receipts (`) Payments (`)
To   Balance B/d

To   Entrance Fees;

2012-13                            2,000

2013-14                            10,000

To   Subscriptions

2012-13                            2,000

2013-14 (90%)                  18,000

2014-15                            1,000

To   Life Membership Fees

To   Donations

To   Donations for Tournament

To   Subscription for Governor’s Party

To   Interest on 8% Fixed Deposit

To   Sale of Old Sports Materials

To   Sale of Old Sports Materials

(Book Value `120)

To   Locker Rent

(including 60 for 2012-13)

 

40,000

 

 

12,000

 

 

 

21,000

4,00

24,000

10,000

3,000

480

60

100

 

1,360

 

1,16,000

By   Rent

(including `1,500 for 2012-13)

By   Insurance  Premium

(including 1,50 for 2014-15)

By   Sports Materials

By   Furniture

(Purchased on 31-3-2014)

By   8% Fixed Deposit

(made on 1-10-2013)

By   Tournament Expenses

By   Purchase of Books

By   Printing and Stationery

By   Balanced c/d

6,000

 

6,000

 

5,000

6,000

 

12,000

 

1,000

2,000

2,000

18,000

 

 

 

 

 

1,1,000

 

 

  1. Following is the summary of cash transactions of the Royal Club for the year ended 31st March, 2014
Receipts (`) Payments (`)
To   Balance from last year

To   Entrance Fees;

To   Subscriptions

To   Donations

To   Life Membership Fees

To   Profit on Entertainment

 

 

31,900

25,500

1,60,000

16,500

25,000

5,600

 

 

 

 

26,450

By   Rent and Rates

By   Wages

By   Electricity Charges

By   Honoarium

By   Books

By   Office Expenses

By   3% Fixed Deposit

(1st October, 2013)

By   Cash at Bank

By   Cash in Hand

16,800

24,500

7,200

4,350

2,130

4,500

8,000

 

2,420

200

26,450

In the beginning of the year, the Club possessed Books worth `20,000 and Furniture worth `8,500. Ordinary Subscriptions in arrears in the beginning of the year amounted to `350 and at the end of the year `450 and six months Rent `600 was due both in the beginning of the y ear and the end of the year.

Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2014 and its Balance sheet as at that date after writing off `500 and
`1,130 on Furniture and Books respectively.

  1. Following is the Receipts and Payments Account of Star Club for the year ended 31st December, 1993.
Receipts (`) Payments (`)
To   Balance b/d on 1-1-2014

To   Subscriptions

To   Interest

To   Tournament Fund

To   Donation

To   Donation for Building extension

To   Receipts from advertisement in       the year book

 

44,000

4,61,000

25,000

1,20,000

60,000

2,00,000

52,000

 

9,62,000

By Salaries

By Rent

By Printing and Stationery

By Expenses on Charity Show

By Tournament Expenses

By Investments Purchased

By Furniture

By Balance c/d on 31-12-14

1,18,200

1,50,000

73,000

1,61,000

75,000

1,00,000

60,000

1,61,000

9,62,000

Subscriptions outstanding on 31st December, 1992 were `4,500 and on
31st December 1993 were `6,000. Rent outstanding at the beginning of the year was `1,000 and in the end was `1,500. Furniture was purchased on 1st April, 1993.

On 1st January, 1993 the Club had Furniture valued `8,000 and Investments valued `15,000.

Prepare Income and Expenditure A/c for the year ended 31st December, 1993 and a Balance Sheet as at that date, after depreciating furniture by 10% p.a.

 

  1. Following is the Receipts and Payments Account of Rajdhani Club for the year ended 31st December, 2014.
Receipts (`) Payments (`)
To   Balance b/d on 1-1-2014

Cash in Hand

Cash in Deposit Account

Cash in Current Account

To   Subscriptions

To   Entrance Fees

To   Life Membership Fees

To   Newspapers (Sales)

To   Canteen Collections

To   Interest on Deposits

 

 

20,000

80,000

26,000

4,00,000

60,000

75,000

1,000

22,000

8,000

 

6,92,000

By Staff Salaries

By Canteen Expenses

By Misc. Expenses

By Insurance

By Telephone Expenses

By Furniture Purchased

By Investments Purchased

By Balance c/d on 31-12-14

Cash in Hand

Cash in Deposit Account

Cash in Current Account

1,77,000

17,500

4,000

10,000

24,000

75,000

2,30,000

 

33,500

1,00,000

21,000

6,92,000

Additional Information:-

  April 1, 2013 March 31, 2014
i)    Outstanding Subscriptions

ii)   Subscriptions Received in advance

iii)  Salaries Outstanding

iv)  Insurance Prepaid

v)   Furniture

vi)  Sports Equipment

35,000

10,000

6,000

2,000

50,000

1,00,000

28,000

12,500

9,000

2,500

Depreciate furniture by 20% and Sports Equipment by 30%.

You are required to prepare an Income and Expenditure Account for the year ended 31st December, 1998 and a Balance Sheet as at that date.

  1. Following is the Receipts and Payments Account of Chennai Sports Club for the year ended 31-12-2014 :
Receipts (`) Payments (`)
Balance b/d

Subscriptions

Entrance Fees

Tournament Fund

Sale of old newspapers

Legacy

10,000

52,000

8,000

30,000

4,000

70,000

1,74,000

Salary

Furniture

Office Expenses

Tournament Expenses

Sports Equipment

Balance c/d

 

24,000

20,000

16,000

42,000

40,000

32,000

1,74,000

 

Additional Information:-

  31-12-2005 31-12-2006
i)    Outstanding Subscriptions

ii)   Salary outstanding

iii)  The Club Had building

iv)  Furniture

v)   10% Investment

vi)  Sports Equipment

vii) Depreciation charged on these items including purchases was 10%.

4,000

2,000

80,000

20,000

45,000

25,000

3,000

3,000

Depreciate furniture by 20% and Sports Equipment by 30%.

You are required to prepare an Income and Expenditure Account for the year ended 31st December, 1998 and a Balance Sheet as at that date.

  1. From the following particulars relating to Nirvana Hospital, prepare Income and Expenditure account for the year ended 31st March, 2014.
Receipts (`) Payments (`)
To Cash in Hand on 1st April 1992

To Subscriptions

To Donations

To Interest on Investments

@ 7% p.a. for full year

To Proceeds from Charity Show

71,130

4,79,960

1,45,000

 

70,000

1,45,000

 

8,70,760

By Medicines

By Doctor’s Information

By Salaries

By Petty Expenses

By Equipment

By Expenses on Charity show

By Cash in Hand on 31-3-14

 

3,59,000

90,000

2,75,000

4,610

1,50,000

7,500

37,750

8,70,760

Additional Information:-

  1-4-2013 31-03-2014
i)    Subscriptions due

ii)   Subscriptions received in advance

iii)  Stock of medicines

iv)  Estimated value of equipment’s

v)   Buildings (Cost less depreciation)

2,400

640

80,810

2,12,000

4,00,000

2,280

1,000

97,400

3,16,000

3,80,000

 

  1. The following is the receipts and payments account of the R. Singhla Club for the year ending 31st December, 2013.
Receipts (`) Payments (`)
To   Balance b/d on 1-1-2014

To   Subscriptions :

Arrear                               1,200

Current                        7,00,00

Advance                            5,000

To   Donations

To   Entrance Fees

To   Endowment Fund Receipts

To   Life Membership Fees

To   Rent of the Hall

To   Grant from Local authority

To   Proceeds of charity show

To   Sundries

To   Interest on Investments

 

30,000

 

 

 

7,11,000

1,75,000

1,50,000

1,40,000

60,000

87,000

40,000

1,68,000

12,000

27,000

10,60,000

By Hnorarium to Clerk

By Cost of Car

By Car Expenses

By Building Advance

By Charities

By Meeting Expenses

By Electricity

By Medicines etc.

By Investments

By Expenses on Charity show

By Insurance Premium

By Balance c/d

1,00,000

8,00,000

42,000

2,50,000

20,000

54,000

48,000

8,000

2,00,000

62,000

12,000

4000

 

 

10,60,000

Additional Information:

  1. i) There are 600 members each paying a monthly subscription of `10; `800 being in arrear for 1997 at the beginning of the year.
  2. ii) A donation of `2,500 was wrongly included in subscriptions of the current year.

iii)      Entire Donations and 2/3 of Entrance free are to be capitalized.

  1. iv) Insurance Premium was paid in advance for three months.
  2. v) Interest on Investments `300 though accrued was not actually received.
  3. vi) A bill of medicine purchased during the year amounting to `200 was outstanding.

vii)     Gujarati cultural association owed `2,000 for the use of society hall.

 

  1. The Modern Club’s Balance Sheet as at 1st April, 2011 was as under
Liabilities (`) Assets (`)
Subscriptions in Advance

Salaries Unpaid

Capital Fund

Tournament Fund

 

6,000

11,000

2,00,000

60,000

 

2,77,000

Sports Equipment

Grounds

Billiards

Subscriptions Outstanding

Cash and Bank Balances

 

 

50,000

1,20,000

60,000

8,000

39,000

2,77,000

 

The Receipts and Payments Account for the year ended 31st March, 2012 was :

 

Receipts (`) Payments (`)
To Opening Balance

To Subscriptions

To Sale of Old Materials

To Sale of Sports Equipment

(costing 1,000)

To Entrance Fees

To Life Membership Fees

To Donations for Tournament

39,000

1,81,000

1,500

6,000

 

2,000

50,000

20,000

 

2,99,500

By Wages and Salaries

By Upkeep of Grounds

By Stationery

By Audit Fee

By Expenses on Teams

By Sports Equipment

By Investments @ 5%

(on 1st October, 2011)

By Cash and Bank Balances

 

 

60,000

10,000

15,000

2,000

65,000

20,000

40,000

 

87,500

2,99,500

 

Subscriptions still to be received are `550 but subscriptions already received include `400 for next year. Salaries still unpaid are `600. Sports Equipment are now valued at `4,500. Prepare Income and Expenditure Account and the Balance Sheet, after charging 10% depreciation on Billiards Tables.

 

 

 

 

Leave a Reply

Your email address will not be published.

X