NPO

Question 1:
In 1999, the subscriptions received by Modern Club of Delhi were ` 20,450 including `
250 for1998 and ` 500 for 2,000. At the end of 1999, subscriptions outstanding for 1999 ere
` 750. The subscriptions due but not received at the end of the previous year i.e.,
31.12.1998 were ` 400 while subscriptions received in advance on the same date i.e., `
900. Calculate the amount of subscriptions to be credited to Income and Expenditure
Account for the year ending 31.12.1999.
Question 2:
From the following extracts of Receipts and Payments Account and additional
information, you are required to calculate the in income from subscriptions for the year
ending December 1999 and show them in the Income and Expenditure Account and the
Balance Sheet of a club:
Receipts and Payments Account
For the year ending on December 31, 1999
Receipts

Payments

Subscriptions
1998

5,000

1999

30,000

2000

6,000

41,000

Additional Information:

(i)

Subscriptions outstanding on December 31, 1998

6,000

(ii)

Subscriptions outstanding on December 31, 1999

5,000

(iii)

Subscriptions received in advance on December 31, 1998

6,000

Question 3:
The accounts of a social club are made up annually as at 31 December. At 31 December
1998 subscriptions in arrears amounted to ` 2,500 and subscriptions received in
advance for 1999 amounted to ` 1,400. During 1999, subscriptions received were `
30,000. This included ` 1,200 in advance for 2000. At 31 December 1999, subscriptions
in arrears amounted to ` 3,500. The annual income and expenditure account is
credited with all subscriptions in respect of the year to which the account relates, on the
basis that all arrears will afterwards be collected.
Show the Subscriptions to be transferred to the income and expenditure account for the
year 1999.
What amount will be transferred to income and expenditure account, if the
subscriptions in arrears for 1999 are `3,500?
Question 4:
From the following information, find out the amount of subscriptions to be included in
the income and Expenditure Account for the year ended 31st March 2006:
Subscriptions were received during the year 2005-06 as follows:
For the year ending 2004-05

20,000

For the year ending 2005-06

3,00,000

For the year ending 2006-07

30,000

Subscriptions outstanding as on 31st March 2005 were ` 35,000 out of which ` 5,000
were considered irrecoverable. On the same date, subscriptions received in advance
for 2005-06 were ` 20,000. Subscriptions still out- standing as on 31st March 2006
amounted to ` 60,000.

NPO

Question 5:
From the following information, calculate the amount of stationery to be debited to
income and expenditure account for 1999:

`
Stock of Stationery on January 1, 1999

3,000

Creditors for stationery on January 1, 1999

2,000

Advance paid for stationery carried forward from 1998

Amount paid for stationery during the year 1999

200
10,800

Stock of stationery on December 31, 1999

500

Creditors for stationery for 1999

1,300

Advance paid for stationery on December 31, 1999

300

Question 6:
The following is the Receipts and Payments Account of Apollo Club in respect of the
year to 31 March 1999:

Receipts
1.4.98

Balance b/d
Cash in hand

31.3.99

Payments

2,000

Subscriptions:

31.3.99

Salaries

3,000

Stationery

1,000

1997-98

3,000

Rates and Taxes

1998-99

4,000

Telephone Charges

1,500

1999-00

1,000

8,000

10% Securities at par

5,000

Profits on sports

3,000

Sundry Expenses

Interest on 10% Securities (Net

of tax at 20%)

1,200

Balance c/d:
Cash in hand

14,200

300

200
3,200
14,200

The following additional facts are ascertained:

(a) There are 500 members, each paying an annual subscription of ` 10; ` 3,500
being in arrears for 1997-98 at the beginning of 1998-1999. During 1997-98,
subscriptions were paid in advance by 30 members for 1998-99.
(b) Stock of stationery at 31 March 1998, was ` 400 and at 31 March 1999, ` 500.
(c) At 31 March 1999, the rates and taxes were prepaid to the following 31 January, the
yearly charge being ` 300.
(d) A quarters charge for telephone is outstanding, the a m o u n t accrued being `
300. The charges for each quarter is same for both 1997-98 and 1998-99.
(e) Sundry expenses accruing at 31 March 1998 were ` 50 and at 31 March 1999 ` 60.
(f) At 31 March 1998, Building stood in the books at ` 30,000 and it is required to
write off depreciation at 10% p.a.
(g) Value of 10% Securities at 31 March 1998 was ` 15,000 which were purchased at
that date at par. Additional Securities worth ` 5,000 were purchased on 31 March
1999.
You are required to prepare:
(a) An income and Expenditure Account for the year ended 31 March 1999 and
(b) A Balance Sheet at that date.

NPO

Question 7:
The managing committee of the Social Club is concerned about the financial position of
the club following the sudden disappearance of the treasurer on 31 December 1996, the
annual accounting date. On 31 December 1995, the Balance Sheet of the Club showed
the following financial position:
Liabilities
Capital Fund
Creditors for provisions
Subscriptions in advance

Assets

1,20,490
20,600

Furniture and Equipment at cost

60,000

Less: Depreciation

30,000

1,000

30,000
Stock of provisions

25,000

Subscriptions due

2,000

Balance with bank

83,000

Cash in hand

2,090

1,42,090

1,42,090

Additional information:
1. Members pay an annual subscriptions of ` 100. An examination of the duplicate
receipt book showed that during the ye a r ended 31 December 1996, 480 members
had paid the cu rre n t years subscriptions, five members had paid off arrears of
previous year and ten members had paid in advance for 1997. Five members had
resigned without paying the previous years subscriptions and at the end of the year
there were 500 members on the register.
2.

The cash book has not been written up but an analysis of petty cash vouchers
showed the following expenditure:

`
Purchase of provisions

59,400

Salaries

36,000

Stationery and postage

2,000

Repairs

3,600

Miscellaneous expenses

3,400

3.

The Refreshment room incharge had handed over the takings daily to the
treasurer with till rolls which cannot be found. However he states that average gross
profit on sales would be 40%. The stock of provisions on 31 December 1996 was `
28,400 and cash in hand ` 4,360.

4.

A summary of bank statement for the year showed the following:

Receipts
Opening balance
Deposits

83,000
4,15,780

Payment for provisions

2,60,000

Salaries

1,06,500

Rent and Rates

60,000

Light and Power

20,000

Telephone

4,98,780

2,900

Repairs

18,600

Balance c/d

30,780
4,98,780

NPO
5.

A bundle of unpaid bills has been found in he treasurers desk, which has been
summarized as follows:
Purchase of provisions

64,600

Electricity bills

1,600

Printing and Stationery

2,100

Telephone

6.

600

Depreciation is to be provided on Furniture and Equipment @ 20% on cost.

Prepare:
(a) Cash account for the year ended 31 Dec. 1996;
(b) An income and expenditure account for the year ended 31 December 1996; and
(c) A Balance sheet as on that date.

Question 8:
The following is the Income and Expenditure Account of Youngmen Sports Club
for the year ended
March 31, 1999:

Salaries

24,000

Subscriptions

72,000

Rent

10,800

Entrance Fees

8,000

Rates and Taxes

600

Surplus on publication of brochure

4,500

Postage and Telephones

720

Profit on sale of old assets

1,200

Affiliation fee to the Lawn

Tennis Association
Sports materials

1,200

600

Miscellaneous Income

225

15,750

Electricity Charges

1,200

Repairs and maintenance of Tennis

Court

9,600

Depreciation of Assets @ 10% of

the book value at the end of year

4,800

Surplus

Interest on 5% Investments

17,855
86,525

86,525

Additional Information:

i.

31.3.98

31.3.99

44,000

Bank Balance

4,800

Subscriptions in arrears

4,750

3,500

Subscriptions received in advance

1,400

2,600

12,000

12,000

Salaries

600

1,200

Rent

900

1,800

Rates and Taxes

Nil

600

Tennis Court maintenance

780

320

Sundry Assets (including sports materials)

5% investments
ii.

Expenses Outstanding:

iii.

Outstanding for purchase of sports materials

1,400

2,950

iv.

Prize fund

4,600

3,250

NPO
v.
vi.

The book value, as on 1.4.1998 of sports goods sold in the year was ` 4,000.
Prize Fund is separately maintained-all receipts being credited to it separately
and expenditure met out of the fund directly. During the year credits to the
accounts amounted to ` 2,800.

vii.
viii.
ix.
x.

Interest received this year was only for two quarters.

The club was admitted as a member of Lawn Tennis Association on 1.10.1998
when it paid subscriptions current till 30.9.1999.
Advertisement charges in brochure-yet to be collected ` 450.
A fixed deposit of ` 25,000 was made on 31 March, 1999.

Required: Receipts and Payments Account for the year ended 31.3.1999 and the
Balance Sheet as on that date.
Question 9:
The Secretary of the Audit Education Society submitted to you the following receipts
and payments account and the income and expenditure account for the year ended
31 March 1998 Year:
Receipts and Payments Account
For the Year ending 31 March, 1998

`
Balance b/d

450

Printing

Interest

Advertisement

1996-97

100

1997-98

150

Staff salary
250

Tuition Fees
1997-98

1,000

1998-99

100

1,100

75
141
1,300

Furniture purchased

670

Rent

520

Miscellaneous expenses

110

Balance c/d

1,374

Entrance fees
1997-98

420

Membership fees
1996-97

300

1997-98

1,150

1998-99

390

Miscellaneous income

1,840
130
4,190

4,190

Income and Expenditure Account

For the Year Ending 31 March, 1998

`
Printing

80

`
Tuition Fees

1,100
1,150

Advertisement

150

Membership fees

Rent

600

Miscellaneous income

130

Interest

160

Staff salary
Miscellaneous expenses

1,200
110

Excess of income over

Expenditure

400
2,540

2,540

NPO

You are asked to give the Balance Sheet of the society as on 31 March 1997, and 31
March 1998. You are further told that the society had the following assets on 31.3.1997:
Investments

` 4,000

Furniture

` 1,000
` 500

Reference books