Mlustration 32, Rajdhani Charitable Trust: Following is the Receipts and Payments Account © RECEIPTS AND PAYMENTS ACCOUNT as pe forthe year ended 31st March, 20) =] Payments cae By Rent cainatbone 140,000 By Salary Suenos 600,000 / 7.40.00} By Postage * oe By Electricity Charges zo-t9 50,000 By Furniture zo3-20 830,000 By Books 2019-20 30,000 | 9,10,000] By Defence Bonds To Sale of Investment 9,00,000 } By Scholarship to Needy Students To Interest on investment 20,000 | By Balance ¢/d: To Sale of Furniture (Book value ® 30,000) 32000} Cashin Hand 1,09,000 Cash at Bank 3,00,000 26,02,000_ Prepare Income and Expenditure Account forthe year ended 31st March, 2019 and Balance Shay as on that date after the following adjustments: Subscription for the year ended 31st March, 2019 still due were T 70,000. Interest due o Defence Bonds was € 70,000. Rent outstanding was € 10,000. Book value of investment sold we ¥ 8,00,000, % 3,00,000 of the investments were still in hand. Subscriptions received in K year ended 31st March, 2019 included % 4,000 from a life member. Total furn Ist April, 2018 was worth 1,20,000. Salary paid for the year ended 31st March, 2020 is ‘ture on % 20,000, Scanned with CamScannerChapter 1 - Financial Statements of Not-for-Profit Organisations 1.47 Solutio: Rajdhani Charitable Trust Dr. INCOME AND EXPENDITURE ACCOUNT for the year ended 31st March, 2019 cr. (Expenditure zg Income: z } To Rent By Subscription 830,000] © Add: Outstanding Rent 70000 | Add: Outstanding 70,000] | To Salary Less: Life Membership Less: Prepaid Salary 1,00,000 Fee (Capitalised) 4,000} 8,96,000 ‘To Postage 3,000 | By Gain Profit) on Sale of Investment ———] 1,00,000 To Electricity Charges 60,000 (% 9,00,000 -% 8,00,000) To Scholarship to Needy Students, 220,000 | By Interest on Investment 20,000 To Surplus, ie, Excess of Income By Gain (Profit) on Sale of Furniture 2,000 and Expenditures 635,000 (% 32,000 - 7 30,000) By Accrued Interest on Defence Bonds |_70,000, 10,88,000 10,88,000 BALANCE SHEET as at 31st March, 2019 Uabilities z ‘Assets z Subscription Received in Advance 30,000 | Cashin Hand 1,09,000 Life Membership Fee 4,000 | Cash at Bank 3,00,000 Outstanding Rent 10,000 | Subscription Outstar 70,000 Capital Fund (WN) 20,10,000 Prepaid Salary 20,000 ‘Add: Surplus 635,000| 2645000 | Accrued Interest on Defence Bonds 70,000 Investments (WN) 11,00,000 | Less: Sale 8,00,000| 3,00,000 Books 30,000 Defence Bonds 15,00,000 Furniture 1,20,000 Less: Sale 30,000 90,000] ‘Add: Purchase 2,00,000| 2,90,000 765,89,000 26,59,000 Working Note: Calculation of Capital Fund on 1st April,2018: BALANCE SHEET as at 1st April, 2018 bites = [Assets Capital Fund (Balancing Figure) 20,10,000 | Cashin Hand Cash at Bank Outstanding Subscription Furniture Investments & (8,00,000 + 3,00,000) 20,10,000 Illustration 33. Following is the Receipts and Payments Account of Mumbai Club for the year ended 31st March, 2019: Oe. RECEIPTS AND PAYMENTS ACCOUNT forthe year ended 31st March, 2019 G Receipts e Payments z To Balance b/d 30,000 | By Rent 5,20,000 To Entrance Fees 55,000 | By Stationery Expenses 3,06,800 To. Subscriptions: By Wages 5,33,000 2017-18 20,000 By Billiards Table 3,90,000 2018-19 16,90,000 By Repairs and Renewals 180,600 2019-20 30,000 | 17,40,000 | By Interest 150,000 To Lockers Rent 50,000 | By Balance c/d 239,600 ‘To Subscriptions for Governor's Party 3,45,000 22,20,000 22,20,000 Scanned with CamScanner1.48 Double Entry Book Keeping—CBSE Xl Additional Information: the year ended 31st March, 2018, and OUutsta, i to () Stationery Expenses & 31,200 related 736,400. for the year ended 31st March, 2019 el 5 2019 & 86,800; Subscription, ii) Subscriptions unpaid for the year ende' ‘ded 31st March, 2019 € 55,000, G, Governor's Party outstanding for the year Party is to be held in April, 2019. (iii) The Club owned Sports Materials was valued at % 13,50,000 on 31st ee tase 750,000, which is to be written off being no! i 2018. in the year ended 31st March, forthe year ended on 31st March, 2019 and Bala Prepare Income and Expenditure Account fot Sheet as at that date. ce € 16,00,000 on Ist April, 2915, 9, Stock includes Sports Materigy le, The Club took a loan of € 296g of the valu‘ ch, 201 Solution: ‘Mumbai Club March, 2019 ended 31st March, Dr. INCOME AND EXPENDITURE ACCOUNT for the year G Expenditure ec noone) Fees 5 To Rent 20,000 | By Entrance To Stationery Expenses: oe 1690,000 Paid 3,06,800 i 86,800 less:Expensesfor 2017-18 _31,200 ae Cuca aaa 275600 | By tae Rent ; a Sir 54 312,000 | By Deficit To = eee 5,33,000 (Excess of Expenditure over Income) To Repairs and Renewals 80,600 To Interest 150,000 To Sports Materials Consumed 2,50,000 FR 16,00,000 - & 13,50,000} To Sports Material Written off (Not useable) | 50,000 18,95,600. 1895, BALANCE SHEET as at 31st March, 2019 Liabilities e | Assets zt Outstanding Cash and Bank Balances 239600 Stationery Expenses 36400 | Sports Materials 13,0000 | ‘Special Subscriptions for f13,50,000 -& 50,000} | Governor’ Party: Billiards Table 390000 Receved 345,000 ‘Subscriptions Outstanding 86800) ‘Add: Outstanding 55,000 | 400,000 | Special Subscriptions Due 55000 loan _ ~~~} 2000000 | Defciency (Capital Fund): Subscriptions Received in Advance 30,000 | On ist Apri.2018 3.81,200* Add: Deficit 13,800 | 3,95, 24/66 400 2 Ist April, 2018, “*Special Subscriptions for Governor's Party is shown as | ity because expense is yet to be incurred. Scanned with CamScannerChapter 1 Financial Statements of Not-for-Profit Organisations 1.49 BALANCE SHEET as at Ist April, 2018 (ie T_ | Assets = fi ing Expenses—Stationery 31,200 | Cash pee 20,00,000 | Subscriptions Due Sports Materials Capital Fund: Deficiency (Balancing Figure) 231,200 Illustration 34. Following is the Receipts and Payments Account of Indian Sports Club, prepare Income and Expenditure Account and Balance Sheet as on 31st March, 2019: oe. RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019 @. Receipts = | Payments z Jo Balance b/d (Cash in Hand) 8900 | By Salary 110,000 To Balance b/d (Cash at Bank) 70,000 | By Electricity Charges 55,000 To Subscriptions 5,20000 | By Biliard Table 1,75,000 To Life Membership Fee 22,000 | By Office Expenses ‘41,000 To Entrance Fee 32,000 | By Printing and Stationery 23,000 To Donations for Tournament 2,60,000 | By ‘Tournament Expenses 185,000 To Lockers Rent 12500 | By Repair of Ground 20,000 To Sale of Old Sports Equipments 25,000 | By Furniture (Purchased) 7,000 (Book value € 22,000) By Sports Equipments 120,000 To Sale of Old Newspapers 7,500 | By Balance cid: To Legacy Donation 3,75,000 Cashin Hand 126,900 Cash at Bank 1,00,000 10% Fixed Deposit (On 1st January,2019) | 3,00,000_ 1332900 13,32,900 Other Information: Subscription outstanding was on 31st March, 2018 12,000 and €32,000 on 31st March, 2019. Lockers rent outstanding on 31st March, 2019 % 2,500. Salary outstanding on 31st March, 2019 10,000. On Ist April, 2018, club has Building % 3,60,000, furniture % 1,20,000, Sports equipments %1,75,000. Depreciation charged on these items @ 10% (including purchase). Legacy Donation is for constructing hostel for sports persons. Solution: Indian Sports Club Dr. INCOME AND EXPENDITURE ACCOUNT for the year ended 31st March, 2019 G. Expenditure z | income z To Salary 7,10,000 By Subscriptions 5,20,000 ‘Add: Outstanding Salary ‘10,000 | 1.20,000 Less: Outstanding To Electricity Charges 5,000 Subscription (2017-18) _ 12,000 To Office Expenses 41,000 708,000 To Printing and Stationery 23,000 ‘Add: Outstanding To. Repait of Ground 20,000 Subscription (2018-19) 32,000 | 5,40,000 To Depreciation on: By Entrance Fee —— "32,000 Bui By Lockers Rent 12500 Furiture ‘Add: Outstanding Lockers Rent _2,500_| 15,000 Sports Equipments £83,000 | By. Gain Profit) on Sale of Sports Equipments 3,000 To Surplus ie,.Excess of Income (% 25,000 -% 22,000) Over Expenditure 2,63,000 | By Receipts from Sale of ld Newspapers 7,500 By Accrued interest on Fixed Deposit 7,500 © 3,00,000 x 10/100 x 3/12) |< 6,05,000 6,05,000 — Scanned with CamScanner1.50 Double Entry Book Keeping—CBSE Xl! BALANCE UfeMembeshpfeeSCSSSCSC* ‘Toumament Fund: Donation for Tournament 2,60,000 Ue: Touarentopemes —_4a5000 | 73080 Outstanding Salary 1 ‘ Hostel Fund: raatwn on 375,000 meso 745; _ 263000 | 1908500 7,300 Less: Depreciation — _27300_| Outstanding Subscript Outstanding Lockers Rent 14,90,900, Working Note: Calculation of Capital Fund on 1st April, 2018: BALANCE SHEET as at 1st April, 2018 = | Assets Liabilities , " Cashin Hand la 7800 shat Bank ; Outstanding Subscriptions Building Furniture Sports Equipments 745,900 Illustration 35. From the following Receipts and Payments Account, preparefinal accounts of Chandigarh Bowling Club for the year ended 31st March, 2019: Dr. RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019 . Receipts z Payments U To Balance b/d 150,000 | By Furniture 180,000 To Sale of Old Furniture (Costing ® 60,000) 40,000 | By Library Books 100,000, To Subscriptions: By Salaries 7,20,000 2017-18 180,000 By General Expenses 1,80000 2018-19 6,00,000 By Electricity Charges 1,20000 2019-20 1,20,000 | 900,000 | By Newspapers 3,38,000 To Sale of Old Newspapers ~ | 108,000 | By Postage 30,000 To Surplus from Entertainment Event 440,000 | By Stationery 4,00,000 To Rent 840,000 | By Audit Fee 80,000 By Balance c/d 3,30,000, 24,78,000 24,78) Scanned with CamScannerChapter 1 - Financial Statements of Not-for-Profit Organisations 1.517 BALANCE SHEET as at 37st March, 2018 (aes era GE — ing Salary S00 | ca a eee 69,40,000 | Outstanding Subscription 4 ; Library Books a } Furniture ae {and and Building 70,00,000 60,00,000, ‘Additional Information: (i) The Club had 500 members each paying an annual subscription of & 1,500. (ii) On3ist ‘March, 2019, salaries outstanding amounted to ¥ 12,000 and salaries paid included % 60,000 for the year 2017-18. (ii) Provide 5% depreciation on Land and Building. Solution: Chandigarh Bowling Club Dn INCOME AND EXPENDITURE ACCOUNT for the year ended 31st March, 2019 Ge Expenditure @ | income x Fp Loss on Sale of Furniture 20000 | By Subscriptions 600,000 {60,000 -& 40,000) ‘Add: Outstanding To Salaries 7720000 Subscriptions (Bal.Fig) _1,50,000 | 7,50,000 less Outstanding Salary (2017-18) 60,000 By Sale of Old Newspapers 108,000 By Surplus rom Entertainment Event 4,40,000 ‘Add: Outstanding Salary (2018-19) 12,000} 672,000 | By Rent 840,000 To. General Expenses — By Deficit 2,000 To Electricity Charges To Newspapers To Postage To Stationery To AuditFee ‘To Depreciation on Land and Building (Excess of Expenditure over Income) BALANCE SHEET asat 31st March, 2019 abilities | Assets z Subscription Received in Advance 120000. | Cashin Hand 330,000 Outstanding Salary 12,000 | Outstanding Subscription 450,000 Capital Fund 640,000 {1500 x 1,500) -%6,00,000] Less: Deficit 2,000 | 69,38,000 | Library Books 3,00,000 | ‘Add: Purchases 190,000 | 400,000 Furniture 370,000} ‘Add: Purchases 1,80,000 5.50000 | Less: Sale 60,000 | 490,000 Land and Building “600,000 | Less: Depreciation 3,00,000_| $7,00,000 | 70,70,000 | 70,70,000 =: Scanned with CamScanner