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26
Chapter
[NPO] Financial Statement of
Not for Profit Organisation
INTRODUCTION
The charitable organizations like trust, clubs, schools, etc. which are non-trading/non-profit
motive organizations, prepares their final accounts in the following form:
(1) Income & Expenditure A/c
(2) Balance sheet
Generally, such organizations also prepare a Receipt & payment A/c
Entrance fees
The Associations collect entrance fees/admission fees from the new members at the time of
their admission.
Treatment:
If the amount is just sufficient to recover the
a) Treated as Revenue Income
expenditure incurred while admitting any member
It should be capitalized &
b) In any other case transferred to the Trust fund
Account
Membership
Classification of funds
The funds can be broadly divided in to two types:
A. Funds for some capital Expenditure.
B. Funds for meeting some Revenue expenditure.
Accounting of Grants/subsidies
Grants/subsidies received form Govt. or other local authorities may be for:
(1) Capital expenditure (i.e. for acquiring fixed assets) or
(2) Revenue expenditure (i.e. for maintenance etc.)
In the 1st case it will be created to separate account & shown in the Balance Sheet on the
liability side. It can be deferred and credited to Income and Expenditure Account in
proportion of depreciation charged on that asset alternatively grant can be credited to the
asset account itself consequently reducing depreciation.
In the 2nd case, it will be credited as income in Income & Expenditure Account.
Treatment of Scholarship
In case of schools/colleges, there may be credit balance in scholarship account which
represents scholars. Hip received from Govt. etc. but yet to be distributed to the students.
This should be shown as liability in the balance sheet. Debit balance in scholarship account
may represent paid to student and recoverable from the concerned authority. But if college
has its own scholarship then that debit balance will transfer to Income and Expenditure A/c.
1. Income account
Particular Rs. Particular Rs.
To, Opening Outstanding B/d xxx By Opening Advance b/d Xxx
(Receivable)
To, Income & Expenditure a/c xxx By, Cash/Bank A/c Xxx
(Income earned during the year) (Received during the year)
To, Closing Advance C/d xxx By, Closing Outstanding C/d Xxx
(Receivable)
Total xxx Total xxx
2. Expense Account
Particular Rs. Particular Rs.
To, Opening Advance B/d (Prepaid) xxx By, Opening Outstanding B/d (Payable) Xxx
To, Cash/Bank a/c xxx By, Income & Expenditure A/c Xxx
(paid during the year) (Expense for the year)
To, Closing outstanding c/f (payable) xxx By, Closing Advance c/d (prepaid) Xxx
Total xxx Total Xxx
PRACTICAL QUESTIONS
Q-1 The receipts and payments for the Saran club for the year ended December 31, 2017
were: Entrance Fees Rs. 300; Membership Fees Rs. 3,000; Donation for Club Pavilion Rs.
10,000; Foodstuff Sales Rs. 1,200; Salaries and Wages Rs. 1,200; Purchase of Foodstuff Rs.
800; Construction of Club Pavilion Rs. 11,000; General Expenses Rs. 600; Rent and Taxes
Rs. 400; Bank Charges Rs. 250;
Cash in hand-Jan 1st Rs. 200; Dec. 31st Rs. 350
Cash in Bank-Jan 1st Rs. 400; Dec. 31st Rs. 500
Prepare Receipt and Payment Account for the year ended December 21, 2017.
Miscellaneous Questions
Q 2: During 2017 subscription received in cash is Rs. 42,000. It includes Rs. 1,600 for 2016
and Rs. 600 for 2018 also Rs. 3,000 has still to be received for 2017. Calculate the amount
to be credited to Income and Expenditure Account in respect of subscription.
Q-3 Salaries paid during 2017 were Rs. 23,000. The following further information is
available:
Salaries unpaid on 31st December, 2016 1,400
Salaries Prepaid On 31 December,2016
st
400
Salaries unpaid On 31st December,2017 1,800
Salaries prepaid On 31st December,2017 600
Calculate the amount to be debited to Income and Expenditure account in respect of salaries
and also show necessary Journal entry and Ledger Accounts.
Q 4: The following was the Receipts and payments Account of Exe Club for the year ended
Dec. 31, 2017
Receipts Rs. Payments Rs.
Cash in hand 100 Grounds man’s Fee 750
Balance at bank Moving Machine 1,500
Deposit Account 2,230 Rent of Ground 250
Current Account 600 Cost of teas 250
Bank interest 30 Fares 400
Donations and subscriptions 2,600 Printing & office Expenses 280
Receipts from teas 300 Repairs to Equipment 500
Net proceeds of variety 780 Honoraria to Secretary and Treasurer 400
Entertainment of 2016
Sale of Equipment 80 Balance at bank
Q 5: The following is the Receipts and Payments Account of star club for the year ended 31st
March, 2017:
Receipts Rs.
To, cash in hand (1.4.2016) 15,000
To, Subscriptions:
2015-16 3,000
2016-17 1,62,000
2017-18 1,500 1,66,500
To, Income from Entertainment 2,900
To, Entrance Fees 6,700
To, Interest on Securities 4,800
To, Sale Proceeds of Old Chairs (Book Value-Nil) 1,200
Total 1,97,100
Payments Rs.
By Bank Overdraft (1.4.2016) 31,000
By Investment in Securities 30,000
By Furniture Purchased on 1.4.2016 14,500
By Salaries 62,000
By Stationary and Printing 8,900
By Miscellaneous Expenses 14,200
By Balance on 31.03.2017
Cash in Hand 5,500
Cash at Bank 31,000
Total 1,97,100
Prepare the Income and Expenditure Accounts the star club for the year ended 31 st March,
2002, and the Balance Sheet as at that date having due regard to the following additional
information:
The club has 1,800 members each paying an annual subscription of Rs. 100, subscriptions
amounting to Rs. 900 is in arrears in respect of the year 2015-16.
Stock of stationary on 31st March, 2016 was Rs. 1,250 and on 31st March, 2017 was Rs. 870
Entrance fees are to be capitalized.
Salary of Rs. 5,500 for March, 2017 is outstanding.
Miscellaneous expenses outstanding on 31st March, 2016 amounted to Rs. 1,320.
The star club paid Rs. 5,500 in the year 2015-2016 towards telephone charges of which Rs.
1,250 relate to the year 2016-17.
As on 31st March, 2016 premise stood in the books at Rs. 2,45,000; furniture at Rs. 10,000
and investment at Rs. 65,000; depreciate premises and furniture @ 5% per annum.
Q 6: The following is the Receipts and Payments account of Jota charitable hospital for the
year ended 31st March, 2018;
Receipts Rs. Payments Rs.
To Balance B/D 1,40,000 By Payment For Medicine 6,00,000
To Subscriptions 10,00,000 By Honorarium to Doctor 2,00,000
To Donations 2,90,000 By Salaries 5,50,000
To Interest on Investments 1,40,000 By Sundry Expenses 10,000
@ 7% per annum for the Year
To, Charity Show Collections 2,00,000 By Equipment Purchased 3,00,000
By Charity Show Expenses 20,000
By Blanch c/d 90,000
17,70,000 17,70,000
Additional information:
On 1.4.2017 On 31.03.2018
Subscriptions due 10,000 20,000
Subscriptions received in advance 20,000 10,000
Stock of medicines 2,00,000 3,00,000
Creditors for medicines 1,60,000 2,40,000
Equipment’s 4,20,000 6,00,000
Buildings 8,00,000 7,60,000
You are required to prepare income and expenditure account for the year ended 31 st March,
2018 and Balance Sheet as at that date.
Q-7: The Income and Expenditure account of the Youth Club for the year 2017 is as follows:
Particular Rs. Particular Rs.
To Salaries 4,750 By Subscription 7,500
To General Expenses 500 By Entrance Fees 250
To Audit Fee 250 By Contribution for Annual Dinner 1,000
To Secretary’s Honorarium 1,000 By Profit on Annual Sport Meet 750
To Stationery & Printing 450
To Annual Dinner Expenses 1,500
To Interest & Bank Charges 150
To Depreciation 300
To Surplus 600
9,500 9,500
This account had been prepared after the following adjustments.
Rs.
Subscription outstanding at the end of 2016 600
Subscription received in Advance on 31 December, 2016
st
450
Subscription received in Advance on 31st December, 2017 270
Subscription outstanding on 31st Dec., 2017 750
Salaries Outstanding at the beginning and the end of 2017 were respectively Rs. 400 and
Rs. 450.
General Expenses include insurance prepaid to the extent of Rs. 60.
Audit fee for 2017 is as yet unpaid.
During 2017 audit fee for 2016 was paid amounting to Rs. 200.
The club owned a freehold lease of ground valued at Rs. 10,000.
The club had sports equipment on 1st January, 2017 valued at Rs. 2,600. At the end of the
year, after depreciation, this equipment amounted to Rs. 2,700.
In 2016, the club has raised a bank loan of Rs. 2,000. This was outstanding throughout
2017.
On 31st December, 2017 cash in hand amounting to Rs. 1,600.
Prepare the Receipts and payments Account for 2017 and Balance sheet as at the end of the
year.
Q 8: From the following Income and Expenditure Account and the Balance sheet of a club,
prepare its Receipts and payments Account and subscription Account for the year ended 31 st
March, 2013:
Income & Expenditure Account for the year 2012-13
Particular Rs. Particular Rs.
To Upkeep of Ground 10,000 By Subscriptions 17,320
To Printing 1,000 By Sale of Newspapers (Old) 260
Q 9: Following is the Income and Expenditure Account of the United Club for the year ended
on 30.06.2018
Expenditure Rs. Income Rs.
To Salaries 15,750 By Subscriptions 45,0000
To Stationery 1,250 By Donations 7,500
To Postage 800 By Sale of Furniture (Profit) 1,000
To Sundry Expenses 4,700 By Govt. Grant 4,000
To Repairs & Maintenance 3,600 By Interest on Fixed Deposit 800
To Sports Expenses 1,800
To Swimming Pool Expenses 2,000
To Affiliation Fee 500
To Electricity 3,250
Q 10: The Sport Writers’ Club gives the following Receipts and payments Account for the
year ended March, 31, 2013:
Receipts and payments Account
Receipts Rs. Payments Rs.
To Balance b/d 4,820 By Salaries 12,000
To subscriptions 28,600 By Rent and Electricity 7,220
To Miscellaneous income 700 By Library Books 1,000
To interest on fixed deposit 2,000 By Magazines and Newspapers 2,172
By Sundry Expenses 10,278
By Sports Equipment 1,000
By Balance c/d 2,450
36,120 36,120
Figures of other assets and liabilities are furnished as follows:
31/03/2012 31/03/2013
Salaries Outstanding 710 170
Outstanding Rent & Electricity 864 973
Outstanding for Magazines and Newspapers. 226 340
Fixed Deposit (10%) with Bank 20,000 20,000
Interest Accrued thereon 500 500
Subscription Receivable 1,263 1,575
Prepaid Expenses 417 620
Furniture 9,600
Sports Equipment 7,200
Library Books 5,000
The closing values of furniture and sports equipments are to be determined after charging
depreciation at 10% and 20% p.a. respectively inclusive of the additions, if any, during the
year. The club’s library books are revalued at the end of every year and the value at the end
of March, 31, 2013 was Rs. 5,250.
From the above information you are required to prepare:
(a) The Club’s Balance sheet as at March, 31, 2012;
(b) The Club’s income and Expenditure Account for the year ended March, 31, 2013.
(c) The club’s closing balance sheet as at March, 31, 2013.
Q 11: From the following data, prepare an income and Expenditure Account for the year
ended 31st December, 2012, and a statement of affaiRs. as at that data of the Mayura
Hospital:
Receipts and payments Account for the year ended 31 December, 2012
Particular Rs. Rs. Particular Rs. Rs.
By Salaries:
To Balances 15,600
(Rs. 3,600 For 2011)
Cash 400 By Hospital Equipment 8,500
Bank 2,600 3,000 By Furniture Purchased 3,000
To Subscriptions: By Additions to Building 25,000
By Printing and
For 2011 2,550 1,200
Stationery
For 2012 12,250 By Diet Expenses 7,800
By Rent and Rates
For 2013 1,200 16,000 1,000
(Rs. 150 For 2013)
By Electricity and Water
To Government Grant: 1,200
Charges
For Building 40,000 By office Expenses 1,000
For Maintenance 10,000 By Investments 10,000
Q 12: The Receipts and Payments Account and the Income and Expenditure account of a
club for the year ended 30st December, 2012 were as follows:
Receipts and payments Account
Receipts Rs. Payments Rs.
To balance c/d 2,500 By, Books Purchased 1,000
To Subscriptions: By, Printing And Stationery 200
2011 600 By, Salary 1,500
2012 4,300 4,900 By, Advertisement 200
To Interest 500 By, Electric Charge 400
To Donation for special fund 300 By, Balance c/d 7,350
To Rent:
2011 150
2012 300 450
To Government Grants 2,000
10,650 10,650
Income and Expenditure Account
Expenditure Rs. Income Rs.
To Salary 2,800 By Interest 400
To Tent Hire 200 By Subscription 4,800
To Electric Charges 400 By Rent 2,300
To Depreciation on Building 750 By Government Grant 2,000
To Printing and Stationery 200
To Advertisement 150
To Surplus 5,000
9,500 9,500
The club’s assets as on 1 January 2012 were:
st
Q 13: The following is the Receipts and payments Account of Lion Club for the year ended
31st March, 2012.
Receipts Rs. Payments Rs.
Opening balance Salaries 1,20,000
Cash 10,000 Creditors 15,20,000
Bank 3,850 Printing and stationary 70,000
Subscription received 2,02,750 Postage 40,000
Entrance donation 1,00,000 Telephones and telex 52,000
Interest received 58,000 Repairs and maintenance 48,000
Sale of assets 8,000 Glass and table linen 12,000
Miscellaneous income 9,000 Crockery and cutlery 14,000
Receipts at Garden upkeep 8,000
Coffee room 10,70,000 Membership fees 4,000
Wines and spirits 5,10,000 Insurance 5,000
Swimming pool 80,000 Electricity 28,000
Tennis court 1,02,000 Closing balance
Cash 8,000
Bank 2,24,600
21,53,600 21,53,600
The assets and liabilities as on 1.4.2011 were as follows:
Rs.
Fixed assets (net) 5,00,000
Stock 3,80,000
Investment in 12% Government securities 5,00,000
Outstanding subscription 12,000
Prepaid insurance 1,000
Sundry creditors 1,12,000
Subscription received in advance 15,000
Entrance donation received pending membership 1,00,000
Gratuity fund 1,50,000
The following adjustments are to be made while drawing up the accounts:
(i) Subscription received in advance as on 31st March, 2012 was Rs. 18,000.
(ii) Outstanding subscription as on 31st March, 2012 was Rs. 7,000.
(iii) Outstanding expenses are salaries Rs. 8,000 and electricity Rs. 15,000.
(iv) 50% of the entrance donation was to be capitalized. There was no pending membership
as on 31st March, 2012.
(v) The cost of assets sold net as on 1.4.2011 was Rs. 10,000.
(vi) Depreciation is to be provided at the rate of 10% on assets.
(vii) A sum of Rs. 20,000 received in October 2011 as entrance donation from an applicant
was to be refunded as he has not fulfilled the requisite membership qualifications. The
refund was made on 3.6.2012.
(viii) Purchases made during the year amounted Rs. 15,00,000.
(ix) The value of closing stock was Rs. 2,10,000.
(x) The club as a matter of policy, charges off to income and expenditure account all
purchases made on account of crockery, cutlery, glass and linen in the year of purchase.
You are required to prepare an Income and Expenditure Account for the year ended 31 st
March, 2012 and the Balance Sheet as on 31st March, 2012 along with necessary workings.
Q 14: Noida school maintains separate building fund. As on 31.3.2012, balance of building
fund was Rs. 10,00,000 and it was represented by fixed deposit (15% per annum) of Rs.
6,00,000 and current account balance of Rs. 4,00,000. During the year 2012-13, the school
collected as donations towards the building fund Rs. 5,60,000 and transferred 40% of
developmental fees collected Rs. 22,56,500 to building fund. Capital work progress as on
31st March, 2012 was Rs. 8,25,000 for which contractors’ bill up to 75% was paid on
14.4.2012. The extension of building was finished on 31.12.2012 costing Rs. 7,25,000 for
which contractors.’ bill was fully met. It was decided to transfer the cost of completed
building (Rs. 15,50,000) to the corresponding asset account.
You are required to pass journal entries to incorporate the above transactions in the books
of Noida school for the year 2012-13 and show the trial balance of building fund ledger.
Q 15: (IPC M 16/8Marks): Following information’s has been given for Bharat Sports Club,
Delhi for the year ending 31.12.2014 and 31.12.2015.
31.12.201 31.12.2015
Building (Subject to 10% Depreciation for the current year) 60,000 ?
Furniture (Subject to 10% Depreciation for the current year) - 20,000
Stock of Sports materials 5,000 2,000
Prepaid Insurance 3,000 6,000
Outstanding Subscription 12,000 8,000
Advance Subscription 6,000 4,000
Outstanding Locker Rent - 6,000
Advance Locker Rent Received - 2,000
Outstanding Rent for Godown 6,000 3,000
12% General Fund Investment 2,00,000 2,00,000
Accrued interest on above - 4,000
Cash balance 1,000 64,000
Bank Balance 2,000 -
Bank Overdraft - 2,000
Additional Information:
(i) Entrance fees received Rs. 20,000. Life membership fees received Rs. 20,000 during the
year.
(ii) Surplus from income and Expenditure Account Rs. 60,000.
(iii) It is policy of the club to treat 60% of entrance fees and 40% of life membership fees
as revenue nature.
(iv) The furniture was purchased on 01.01.2015.
Prepare Opening and Closing Balance Sheet of Bharat Sports Club as on 31 st Dec., 2014 and
31st Dec., 2015 respectively.
State with Reason whether the following statements are True of False
Statements T/F
1. Scholarships granted to students out of funds provided by Government will be
debited to Income and Expenditure Account.
3. The Receipts and Payments Account records receipts and payments of revenue
nature only.
4. If there appeaRs. a sports fund, the expenses incurred on spots activities will be
taken to income and expenditure account.
6. Income and expenditure a/c highlights total income and expenditure of revenue
nature.
10. Donation received for a particular purpose should be credited to that fund a/c
only.
DIY
Q 1: (M 08) following is The Receipts and Payments Account of Mayur Club for the year
ended 31st March, 2008
Receipts Rs. Payments Rs.
Opening balance (1.4.2007) Payments:
Cash on hand 39,100 Sports materials 3,04,500
Cash at bank 50,000 Salaries 3,15,000
Receipts: Equipment purchased on 60,000
1.10.2007
Subscriptions Bank fixed deposit on 1,50,000
31.03.2008
For the year 2006-07 18,000 Rent 1,48,500
For the year 2007-08 9,63,000 Ground maintenance 22,120
For the year 2008-09 4,500 Insurance 38,400
Interest on bank Fixed deposits 45,000 Stationery 3,450
@ 10%
Sundry expenses 5,880
Closing balance as on
31.03.2008
Cash on hand 31,750
Cash at bank 40,000
11,19,600 11,19,600
Following additional information is provided to you
(i) The club has 220 membeRs. The annual subscription is Rs. 4,500 per member
(ii) Depreciation to be provided on furniture at 10% p.a. and on sports equipment at 15%
p.a.
(iii) On 31st March, 2008 stock of sports material in hand (after membeRs. use during the
year) is valued at Rs. 78,000 and stock of stationery at Rs. 3,150 Rent for 1 month is
outstanding. Unexpired insurance amounts to Rs. 9,600.
(iv) On 31st March, 2007 the club had the following assets:
Furniture Rs. 2,70,000 Stock of sports material Rs. 73,500
Sports equipment Rs. 1,80,000 Unexpired insurance Rs. 8,400
Bank fixed deposit Rs. 4,50,000 Subscription in arrear Rs. 22,500
Stock of stationery Rs. 1,500
Note: there was no liability on 31.03.2007
You are required to prepare:
(i) Income and expenditure account: and
(ii) Balance sheet as at 31st March, 2008
Q 2: (D 97) The following is the income and expenditure account of a club for the year 31 st
March, 1997
Expenditure Rs.
To Provision used:
Opening stock 10,000
Add: Purchases 1,40,000
1,50,000
Less: Closing stock (5,000) 1,45,000
To Salaries 18,000
To General Expenses 5,000
To Depreciation on Equipment’s 1,000
To Surplus (Excess of Income Over Expenditure) 28,000
1,97,000
Income: Rs.
By Subscriptions 34,000
By Sale of Provisions 1,63,000
1,97,000
The following Balance Sheet is also given to you:
Liabilities On 31.03.1996 On 31.03.1997
Creditors for provisions 8,000 10,000
Capital fund 47,000 75,000
55,000 85,000
Assets On 31.03.1996 On 31.03.1997
Equipment’s (cost less depreciation ) 10,000 25,000
Stock of provisions 10,00 5,000
Subscriptions receiveable 5,000 10,000
Cash at bank and in hand 30,000 45,000
55,000 85,000
Prepare the Receipts and payments account of the club for the year ended 31st March, 1997
Q 3: (D 96): from the following particulaRs. relating to Deena Nath charitable Hospital
prepare
(i) Receipts and Payments Account for the year ended on 31st March, 1996 and
(ii) Balance Sheet as on 31st March, 1996
Income and expenditure account
For the year ended 31st March, 1996
Expenditure Rs. Income Rs.
To Medicines Used 29,980 By, Subscriptions 56,000
To Honorarium to DoctoRs. 12,000 By, Donations 9,500
To Salaries 27,500 By, Interest on investments 11,000
@ 11% per annum
Q 4 (N 09): the Income and expenditure account of City Sports Club for the year ended
31st March, 2009 was as follows:
Expenditure Rs. Income Rs.
To Salaries 1,20,000 By Subscriptions 1,60,000
To Printing And Stationery 6,000 By Entrance Fees 10,000
By Contribution For Annual
To Rent 12,000 20,000
Dinner
By Profit On Annual Sports
To Repairs 10,000 20,000
Meet
To Sundry Expenses 8,000
To Annual Dinner Expenses 30,000
To Interest To Bank 6,000
To Depreciation On Sports
6,000
Equipment
To excess of income over
12,000
expenditure
2,10,000 2,10,000
The above account had been prepared after the following adjustments:
Rs.
Subscriptions outstanding on 31.03.2008 12,000
Subscriptions received in advance on 31.03.2008 9,000
Subscriptions received in advance on 31.03.2009 5,400
Subscriptions outstanding on 31.03.2009 15,000
Salaries outstanding at the beginning and at the end of the financial year were Rs. 8,000
and Rs. 10,000 respectively.
Sundry expenses included prepaid insurance expenses of Rs. 1,200.
The club owned a freehold ground valued Rs. 2,00,000.
The club has sports equipment on 01.04.2008 valued at Rs. 52,000 at the end of the
year after depreciation the sports equipments amounted to Rs. 54,000
The club raised a loan of Rs. 40,000 from a bank on 01.01.2008 which was unpaid till
31.03.2009
On 31.03.2009 cash in hand was Rs. 32,000
Prepare Receipts and Payments Account of the club for the year ended 31 st March 2009 and
Balance Sheet as on that date.
Q 8: (Dec. 1999) for the following find out the amount of subscription to be included in the
income and expenditure account for the year emended 31st March, 1999
Subscription was received during the year 1998-99 as follows:
Rs.
For the year 1997-98 2,000
For the year 1998-99 30,000
For the year 1999-2000 3,000
Subscriptions outstanding as on 31st March, 1998 were Rs. 3,500 out of which Rs. 500 were
considered to be irrecoverable. On the same date subscription received in advance for 1998-
99 were Rs. 2,000. Subscription still outstanding as on 31st March, 1999 amounted to Rs.
6,000.
Q 9: (Dec. 2000) There are 450 membeRs. of a club each paying an annual subscription of
Rs. 500. On 31st March, 2000, subscriptions in arreaRs. totaled Rs. 5,000; subscriptions
received during the year ended 31st March, 2001, amounted to Rs. 2,23,000 including Rs.
4,500 for the year 1999-200 and Rs. 7,500 for the year 2001-2002.
Calculate the amount of subscriptions in arreaRs. as on 31st March, 2001 by preparing
subscriptions a/c.
Q 10 (J 03): On the basis of the following information calculate the amount that will appear
against the item stationery used in the income and expenditure account for the year ended
31st March, 2003
Rs.
Stock of stationary as on 1st April, 2002 12,000
Creditors for stationary on 1 April, 2002
st
25,600
Amount paid for stationary during the year ended 31st March, 2003 1,40,000
Stock of stationary as on 31st March, 2003 23,200
Creditors for stationary as on 31 March, 2003
st
24,000
Q 11 (N 01): Summary of receipts and payment of Bombay Medical Aid Society for the
year ended 31.12.2000 is as follows:
Opening Cash Balance in Hand Rs. 8,000; Subscription Rs. 50,000; Donation Rs. 15,000;
Interest on Investment @ 9% P.A. Rs. 9,000; Payments For Medicine Supply Rs. 30,000;
Honorarium to DoctoRs. Rs. 10,000; Salaries Rs. 28,000; Sundry Expenses Rs. 1,000;
Equipment Purchase Rs. 15,000; Charity Show Expenses Rs. 1,500; Charity Show
Collections Rs. 12,500
Additional information:
1.1.2000 31.12.2000
Subscription due 1,500 2,200
Subscription received in advance 1,200 700
Stock of medicine 10,000 15,000
Amount due for medicine supply 9,000 13,000
Value of equipment 21,000 30,000
Value of building 50,000 48,000
You are required to prepare Receipts and Payments Account and Income and Expenditure
Account for the year ended 31.12.2000 and Balance Sheet as on 31.12.2000.
Q 12 (N 98): The following information’s were obtained from the books of Delhi club as on
31.03.1998 at the end of the fiRs.t year of the club. You are required to prepare Receipts
and Payments Account, Income and Expenditure Account for the year ended 31.03.1998 and
a Balance Sheet as at 31.03.1998 on mercantile basis;
(i) Donations received for building and library room Rs. 2,00,000
(ii) Other revenue income and actual receipts:
Revenue income Rs. Actual receipts Rs.
Entrance fees 17,000 17,000
Subscription 20,000 19,000
Locker rents 600 600
Sundry income 1,600 1,060
Refreshment account 16,000
(iii) Other revenue expenditure and actual payments:
Revenue expenditure Rs. Actual payments Rs.
Land (cost Rs. 10,000) 10,000
Furniture (cost Rs. 1,46,000) 1,30,000
Solutions of DIY
Working Note:
1. Balance Sheet as at 31.03.2007
Liabilities Rs. Assets Rs.
Capital fund [bal. Fig.] 10,95,000 Sports Equipment 1,80,000
Furniture 2,70,000
Sports material 73,500
Stock of Stationary 1,500
Fixed Deposit in bank 4,50,000
Subscription in Arrear 22,500
Prepaid insurance 8,400
Cash on hand 39,100
Cash at bank 50,000
10,95,000 10,95,000
Solution 2:
Receipt and payment Account
Receipt Rs. Payment Rs.
To, opening balance 30,000 By, salary 18,000
To, Sale of Provision A/c 1,63,000 By, General Expenses 5,000
To, Subscription A/c 29,000 By, Creditors 1,38,000
By, Equipment A/c 16,000
By, Closing Balance 45,000
2,22,000 2,22,000
Working Note:
1. Creditors’ A/c
Particular Rs. Particular Rs.
To, Cash/bank [bal. Fig] 1,38,000 By, Op. bal 8,000
To, Closing Bal. 10,000 By, purchase 1,40,000
2,20,000 2,20,000
2. Equipment A/c
Particular Rs. Particular Rs.
To, op. bal 10,000 By, depreciation 1,000
To, Cash/ bank [bal. fig] 16,000 By, Cl. Bal. 25,000
26,000 26,000
3. Subscription A/c
To, Accrued Subs. b/d 5,000 By, Cash/ bank A/c [Bal. Fig.] 29,000
To, Income and Expenditure A/c 34,000 By, Accrued Subs. c/d 10,000
39,000 39,000
Working Note:
1. Memorandum balance Sheet as on 01.04.1995
Liabilities Rs. Assets Rs.
Solution 5:
Income and Expenditure A/c [For the year ended…….]
Expenditure Rs. Rs. Income Rs. Rs.
To, Salary By, Fees
Paid 28,000 Received 3,80,000
Less: Op. O/s (3,000) Less: Op. O/s (80,000)
Add: Cl. O/s 1,000 26,000 Add: Cl. O/s 10,000 3,10,000
To, Entertainment Exp. 3,000 By, Donation Received 20,000
To, Tournament Exp. 12,000
To, Meeting Exp. 18,000
To, Travelling Exp. 6,000
To, Periodicals
Purchase 29,000
Less: Books (19,000) 10,000
To, Rent 10,000
To, Postage 15,000
To, Printing and Stationary 4,000
Solution 7:
Subscription A/c
Particular Rs. Particular Rs.
To, opening O/s Subscription A/c 1,500 By, Op. Adv. Subs. A/c 900
To, I & Exp. A/c [Bal. Fig.] 14,730 By, Cash/ bank A/c 14,670
To, Cl. Adv. Subs. A/c 540 By, Cl. O/s Subs. A/c 1,200
16,770 16,770
Solution 8:
Subscription A/c
Particular Rs. Particular Rs.
To, opening O/s Subscription A/c 3,500 By, Op. Adv. Subs. A/c 2,000
To, I & Exp. A/c [Bal. Fig.] 37,000 By, I & Exp. A/c [Irrecoverable] 500
By, Cash/ bank A/c
1997-98 2,000
1997-99 30,000
1999-00 3,000 35,000
To, Cl. Adv. Subs. A/c 3,000 By, Cl. O/s Subs. A/c 6,000
43,500 43,500
Solution 9:
Subscription A/c
Particular Rs. Particular Rs.
To, opening O/s Subscription A/c 5,000 By, Op. Adv. Subs. A/c Nil
To, I & Exp. A/c [450 x 500] 2,25,000 By, Cash/ bank A/c 2,23,000
To, Cl. Adv. Subs. A/c 7,500 By, Cl. O/s Subs. A/c [Bal. Fig.] 14,500
2,37,500 2,37,500
Solution 10:
Stationary A/c
Particular Rs. Particular Rs.
To, opening stock of stationary A/c 12,000 By, Op. Bal of creditors for stationary 25,600
To, Cash/ bank 1,40,000 By, I & Exp. A/c [Bal. Fig.] 1,27,200
To, Closing creditors for stationary 24,000 By, Closing stock of stationary 23,200
1,76,000 1,76,000
Note: Alternatively students can prepare two accounts.
1,50,400 1,50,400
Working notes:
Subscription A/c
Particular Rs. Particular Rs.
To, opening O/s Subscription A/c 1,500 By, Op. Adv. Subs. A/c 1,200
To, I & Exp. A/c [450 x 500] 51,200 By, Cash/ bank A/c 50,000
To, Cl. Adv. Subs. A/c 700 By, Cl. O/s Subs. A/c 2,200
53,400 53,400
Creditors A/c
Particular Rs. Particular Rs.
To, Cash/ bank 30,000 By, Op. Bal of creditors 9,000
To, Closing balance 13,000 By, Purchase A/c [Bal. Fig.] 34,000
43,000 43,000