CMA FOUNDATION ACCOUNTS AND COST | CA BHAKT

cases income relating to special funds should be added to these funds in the liabilities side
of the B/S. All the expenses should be deducted from that fund on the liabilities side of the
B/S.

7.Capital Fund It consists of contribution made by promoters of the concern, surplus

accumulated over the year and other capitalized item like Entrance Fees etc. It is also known
as General Fund.

8.Treatment of Sale of Old Newspaper and Periodicals The amount received on such sale
is shown as Income.

9.Sale of old Fixed Assets The Sale proceeds of old Fixed Assets are treated as capital
receipts. The profit or loss on sale of fixed asset is shown in the Income and Expenditure
A/c.

10.Combined Expenses Account

Computation of Amount of expenses to be transferred to Income & Expenditure A/c

Particulars Amount
Payment during the year xxx
Add: Outstanding expense at the end of the year xxx
Add: Prepaid expense at the beginning of the year xxx
Less: Outstanding expense at the beginning of the year (xxx)
Less: Prepaid expense at the end of the year (xxx)
Amount of expenses to be transferred to Income & Expenditure A/c xxx

Q. Compute the salaries for the year 2020-2021 from the following information:

Particulars 1/4/2021 31/3/2022

Outstanding salaries 10,500 13,000
Prepaid salaries 5,000 9,500
Salary paid during the year 2021-2022 1,70,000

12.Consumables

Sometimes NPO consume some consumable item e.g. stationery, sports material, medicines,
etc. A separate stock account is prepared for each consumable item to ascertain the amount
of consumable item consumed during the year. Such amount is to be debited to Income &
Expenditure account.

HARDIK MISHRA 3