NPO cont.

1. Rotary club Ghaziabad received subscription during the year 2019-20 Rs.25,00,000 as
shown by its Receipts & Payments account. Additional information are given below:
Subscription received for the year 2018-19 – Rs.50,000
Subscription received for the year 2020-21- Rs.48,000
Subscription outstanding for the year 2019-20- Rs.51,000
Subscription outstanding at the end of 2018-19 – Rs.1,36,000

Show the amount to be credited to its income & Expenditure Account for the year ended
31st March 2020.
Ans: Calculation of subscription to be credited to Income & Expenditure Account for the
year ended 31st March 2020
Particulars Amount
Subscription as per receipts & Payments A/c 25,00,000
Add: Subscription outstanding for the year 2019-20 51,000
25,51,000
Less: Subscription received in advance at the end of the year
(Subscription received for the year 2020-21) (48,000)
25,03,000
Less: outstanding at the beginning of the year
(50,000)
(Subscription received for the year 2018-19)
subscription to be credited to Income & Expenditure Account 24,53,000
2. Calculate the amount of subscription to be shown in Income & Expenditure
account for the year ended 31st March 2020 from the following particulars of Sai
Ram Charitable hospital:
Particulars 31/3/2019 31/3/2020
Outstanding subscription 2,40,000 2,00,000
Subscription in advance 22,000 50,000
st
Total subscription received during the year ended 31 March 2020 was Rs.32,50,000.
Show the Balance sheet treatment also.
Ans: Calculation of subscription to be credited to Income & Expenditure Account
Particulars Amount
Subscription received during the year 32,50,000
Add: Subscription outstanding for the year 2019-20 2,00,000*
34,50,000
Less: Subscription received in advance at the end of the year (50,000)*
34,00,000
Add: subscription received in advance in the beginning of the
year 22,000
Less: outstanding at the beginning of the year 34,22,000
(2,40,000)
subscription to be credited to Income & Expenditure Account 31,82,000

Income & expenditure Account for the year ended 31st March 2020
Expenses Amount Incomes Amount
Subscription 31,82,000

Balance sheet as at 31st March 2020

Liabilities Amount Assets Amount
Subscription Received in Subscription
advance 50,000* outstanding 2,00,000*
*Only relevant items are shown

3. From the following Receipts & Payments Account and additional information, show
the amount is to be shown in Income & expenditure Account for the year ended 31 st
March 2020

Receipts & Payments Account for the year ended 31 st March 2020

Receipts Amount Payments Amount

Subscriptions:
2018-19 1,50,000
2019-20 22,00,000*
2020-21 1,75,000
-------------- 25,25,000

The organization has 2,000 members contributing annually @Rs.1,500 per member.
Outstanding subscription for the year 31st March 2019 was Rs.2,10,000.
Ans:
Income & expenditure Account for the year ended 31st March 2020
Expenses Amount Incomes Amount
Subscriptions- 22,00,000*
Add: outstanding 8,00,000
30,00,000
Calculation of outstanding subscription:
No. of members - 2,000
Annual subscription from each member- Rs.1500
Total subscription for the year=2,000X1500= 30,00,000
Less: Subscription received during the year- 22,00,000*
Outstanding subscription = 8,00,000