NCERT Solutions For Class 12 Accountancy Chapter 1 - Accounting For Not For Profit Organisation - 67p

NCERT Solutions for Class 12
Accountancy
Chapter 1 - Accounting For Not for Profit Organisation
1. State the meaning of ‘Not-for-Profit’ organizations?

Ans: Not-for-profit organisations are those organisations that are established for
a charitable or social purpose and not with a view to earning profit these
organisations render services to their members and to the society voluntarily or
for the promotion of art culture education in sports and other social and
charitable purposes.
2. State the meaning of receipt and payment account?

Ans: Receipt and payment account is prepared at the end of the year from the
cash book. It includes all receipts and payments of cash including bank despite
the fact whether they relate to the current year preceding year or future period or
whether they are of capital or revenue nature.
3. State the meaning of income and expenditure account

Ans: Income and expenditure account is prepared to depict the result of a not for
profit organisation during an accounting period. This principle of preparation of
profit and loss accounts applies to the preparation of income and expenditure
accounts. It is prepared on an accrual basis of accounting-based or on the
principle of matching concept.
4. What are the features of Receipt and Payment accounts?

Ans: The following are the features of the receipt and payment account:
1. Receipts and payments account is a summarised form of cash book so it is a
real account. Thus, all receipts are recorded on the debit side and all payments
are recorded on the credit side.
Class XII Accountancy www.vedantu.com 1
2. All the receipts and payments are recorded whether they are of capital nature
or revenue nature. The basis of recording is cash basis.
3. It starts with opening the balance of cash in hand or cash at the bank. Cash
always has a debit balance while banks may have debit or credit balance
(overdraft). Similarly, the closing balance also represents cash in hand or cash
at the bank.
4. No adjustments for outstanding, depreciation, accrued income, etc. are made
in it as all transactions are recorded on a cash basis.
5. It covers a period of the accounting year. All receipts whether related to the
current year, previous year or future year are recorded on the receipt side.
Similarly, all payments made during the year are shown on the credit side
whether they relate to the current year, previous year or future year.
6. Receipts and Payments A/c merely depict cash in hand and cash at the bank
at the end. It does not represent excess income over expenditure and vice
versa.
5. What steps are taken to prepare an Income and Expenditure account

from a Receipt and Payment account?
Ans: The steps that are involved in the preparation of the Income and
Expenditure account from the Receipt and Payment account are as follows:
1. The opening balance of cash in hand and bank balance appearing in the
reception payment account will be shown on the asset side of the opening
balance sheet similarly closing balance of cash and bank will be shown in the
closing balance sheet.
2. All the cash receipts are shown on the liabilities side of the balance sheet
keeping in mind that expenses related to these funds are deducted from the
concerned fund and income related to the concerned fund is added to it.
3. The items of revenue expenditure are debited to the income and expenditure
account after making the necessary adjustments for outstanding and prepaid
expenses in the concerned expense.
4. The income and expenditure account is closed and balanced. It will either
reveal surplus or deficit.
6. What is a subscription? How is it calculated?

Ans: Subscription is the amount paid by the members of a Not-for-profit
organisation on a periodical basis so that their membership is not cancelled.

Thus, it is a recurring source of revenue from its members. It is calculated as
under:
Computation of Subscriptions
Particulars Rs.
Total subscriptions received during the year ……….

Add: subscription outstanding at the end ……….
Add: Subscription received in advance at the ……….
beginning of the year ……….
Less: subscription outstanding at beginning ……….
……….
Less: Subscription received in advance at the end of
the year .………
Subscription to be shown in income and expenditure ……….

account
7. What is the capital fund? How it is calculated?

Ans: The excess of assets over liabilities in the case of a not for profit
organisation is called a capital fund. The balance of income and expenditure
account in the form of surplus or deficit is transferred to the Capital fund every
year. This fund is also called an accumulated fund or general fund. It is calculated
as:
Particulars Rs.

Opening balance ……….
Add: Surplus ……….
Less: Deficit ……….
Add: Life membership fee ……….
Capital fund at the end of the year ……….
8. Explain the statement: “Receipts and Payment Account is a summarised

version of Cash Book’’.
Ans: A receipt and payments Account is prepared at the end of the year from the
cash book. The receipt and payment account begins with opening cash and bank
balance on the debit side. All receipts are recorded on the debit side and all
payments on the credit side balance represent the closing cash and bank balance.
The similarity between receipt and payments account and cash book
The following are the features of receipt and payment account that are common
to those of cash book:
1. All receipts are recorded on the debit side and all payments are recorded on
the credit side in both.
2. Receipts and payment account is a real account as cash book
3. It starts with the opening balance of cash in hand and cash at the Bank and the
closing balance also represents cash in hand and cash at the bank similar to
the cash book.
4. No adjustment for outstanding depreciation accrued income etc. is made like
the transactions recorded in the cash book.
5. Like a cash book, it helps to ascertain the cash in hand and cash at the bank at
the end of the accounting period.
Based on the similarities the above statement, receipt and payment account is a
summarised version of the cash book is justified.

9. “Income and Expenditure Account of a Not-for-Profit Organisation is
akin to Profit and Loss Account of a business concern”. Explain the
statement.
Ans: The income and expenditure account is a nominal account it is prepared to
depict the result of a not for profit organisation during an accounting period. The
principles of preparation of profit and loss accounts apply for the preparation of
income and expenditure accounts as well. It is prepared on an accrual basis of
accounting based on the principle of matching concept.
Similarities between income and expenditure account and profit and loss
account.
Both the accounts are nominal accounts.
1. Revenue expenses and revenue incomes are recorded related to the current
accounting period, in both accounts.
2. Both cash and non-cash items like Bank that depreciation etc are taken into
consideration as both the accounts are prepared on an accrual basis.
3. Both accounts record transactions related to the current year, previous year
and next year transactions are excluded.
Based on the above similarities, the income and expenditure account of a not-
for-profit organisation is keen to profit and loss account of a business concern.
10. Distinguish between Receipts and Payments Account and Income and
Expenditure Account.
Ans:
Receipts and Payments Income and Expenditure

Basis
Account Account
Nature of It is a real account. It is a nominal account.

account
Nature It is a summarised form of cash It is similar to the profit and

book. loss account of a business.

Basis It is prepared on a cash basis of It is prepared on an accrual
accounting. basis of accounting.
Capital and It includes the recording of It contains recordings of

revenue items of both capital and only revenue items.
items revenue nature.
Period It includes reception and It includes income and

payments made during the expenditure for the current
year whether they relate to year only.
past, current or future dates.
Opening The opening balance It does not contain any

balance represents cash in hand and opening balance.
cash at the Bank.
Sides The debit side represents cash The debit side of this
and the credit side represents account contains expenses
cash payments. and losses and the credit
side contains incomes and
gains
Closing The closing balance of this The closing balance of this
balance account represents cash and account represents a
bank balance. surplus or deficit.
Adjustments It does not contain any It contains adjustments for

adjustments. It is prepared on a outstanding prepaid
cash basis. accrued income etc. as it is
prepared on an accrual
basis.
Balance Receipts and payments Income and expenditure
sheet accounts need not be accounts are generally
accompanied by a balance accompanied by a balance
sheet. sheet.

11. Explain the basic features of Income and Expenditure Account and
Receipt and Payment Account.
Ans: The following are the features of the income and expenditure account:
1. It is a nominal account so expenses and losses are debited while gains and
incomes are credited to this account.
2. It is prepared for an accounting period showing all expenses and incomes of
the accounting period are shown whether paid or due.
3. Income and expenditure accounts are prepared on an accrual basis to show
adjustments related to outstanding expenses, prepaid expenses and accrued
income received in advance are made. Similarly provision for doubt that
depreciation is made.
4. It does not include capital expenditures and capital receipts.
5. Both cash and non-cash items like bad depreciation etc are taken into
consideration.
6. If an asset is sold during the year, profit on the sale of assets for loss on sale
of the asset is shown in the income and expenditure account.
7. The balance of income and expenditure accounts at the end represents their
surplus or deficit.
8. Income and expenditure accounts are followed by a balance sheet which
consists of personal accounts and real accounts.
The following are the features of the receipt and payments account:
1. The receipts and payments account is a summarised form of cash book so it is
a real account. Thus, all receipts are recorded on the debit side and all
payments are recorded on the credit side.
2. All the receipts and payments are recorded whether they are of capital nature
or revenue nature. The basis of recording is cash basis.
3. It starts with opening the balance of cash in hand or cash at the bank. Cash
always has a debit balance while banks may have debit or credit
balance(overdraft). Similarly, the closing balance also represents cash in hand
or cash at the bank.

4. No adjustment for outstanding, depreciation, accrued income, etc. is made in
it as all transactions are recorded on a cash basis.
5. It covers a period of the accounting year. All receipts whether related to the
current year, previous year or future year are recorded on the receipt side.
Similarly, all payments made during the year are shown on the credit side
whether they relate to the current year, previous year or future year.
6. Receipts and Payments A/c merely depict cash in hand and cash at the bank
at the end. It does not represent excess income over expenditure and vice
versa.
12. Show the treatment of the following items by a not-for-profit

organisation:
(i) Annual subscription
(ii) Specific donation
(iii) Sale of fixed assets
(iv) Sale of old periodicals
(v) Sale of sports materials
(vi) Life membership fee
(i) Annual subscription
Ans:
(i) It is shown on the debit side of the receipts and payments account
(ii) Amount related to the current year whether received or not received are
shown on the credit side of the income and expenditure account.
(iii)Advance subscriptions are shown on the liability side of the balance sheet
(iv) Subscription outstanding are shown on the asset side of the balance sheet
(ii) Specific donation

Ans:
(i) Specific donation received is shown on the debit side of the receipts and
payments account.
(ii) These are shown on the liability side of the balance sheet account.

(iii) Sale of fixed assets
Ans:
(i) The amount received from the sale of fixed assets are recorded on the debit
side of the receipts and payments account
(ii) Profits on the sale of assets is credited and losses on the sale of fixed assets
are debited to the income and expenditure account
(iii) The book value of the fixed assets sold is deducted from its respective assets
on the asset side of the balance sheet
(iv) Sale of old periodicals

Ans:
(i) Sound received from the sale of old periodicals are shown on the debit side
of the receipts and payments account
(ii) Sale of old periodicals is shown on the credit side of the income and
expenditure account
(v) Sale of sports materials

Ans:
(i) The amount received from the sale of sports material are debited to the
receipts and payments account
(ii) Sale of sports material is shown on the credit side of the income and
expenditure account as it is a revenue income
(vi) Life membership fee

Ans:
(i) It is debited to the receipts and payments account
(ii) Life membership fees are added to the capital fund on the liabilities side of
the balance sheet as it is a capital receipt.
13. Show the treatment of items of Income and Expenditure Account when
there is a specific fund for those items.

Ans: Income and expenditure are prepared on the accrual basis of accounting
based on the principle of matching concept i.e. adjustment relating to outstanding
expenses prepaid expenses accrued income received in advance and depreciation
are made. Incomes are shown on the credit side while expenses are shown on the
debit side. There is no opening balance in the income and expenditure account
but the closing balance reveals surplus if there is an excess of income over
expenditure and reveals deficit if there is an excess of expenditure over income.
The treatment of items when there is a specific fund for those items:
Treatment
(Tournament/Match/Prize, etc.) Fund Account
Dr.
TttttttttttttttttttttCr.
Date Particul- L.F. Amo- Date Particul- L.F. Amou-

ars unt ars nt
Expenses Balance
(expenses b/d
incurred
like Incomes
match (income
expenses, or
tourname interest
nt earned
expenses) on funds
invested
Balance in the
c/d (b) form of
donation,
interests,
dividends
, etc.)
Income
and
Expendit
ure A/c
(a)

(a) If the receipts exceed the expenses for specific purposes then the difference
between the two is shown in the Liabilities side of the Balance Sheet.
(b) If the expenses exceed the receipts for the specific purpose then the
difference between the two is shown in the Expenditure side of the Income
and Expenditure Account.
14. What is a Receipt and Payment Account? How is it different from

Income and Expenditure Account?
Ans: Receipt and payment account is a summary of cash and Bank transactions
during an accounting year of a not for profit organisation. Receipts and payments
account is prepared at the end of the year from the cash book. The reception and
payments account includes all receipts and payments of cash including Bank
despite the fact that they are related to the current year preceding year or future
period or whether they are of capital nature or revenue nature.
Receipts and Payments Income and Expenditure

Basis
Account Account
Nature of It is a real account. It is a nominal account.

account
Nature It is a summarised form of It is similar to the profit

cash book. and loss account of a
business.
Basis It is prepared on a cash basis It is prepared on an accrual
of accounting. basis of accounting.
Capital and It includes the stock recording It contains recordings of

revenue of items of both capital and only revenue items.
items revenue nature.
Period It includes reception and It includes income and

payments made during the expenditure for the current
year whether they relate to year only.
past, current or future dates.

Opening The opening balance It does not contain any
balance represents cash in hand and opening balance.
cash at the Bank.
Sides The debit side represents cash The debit side of this
and the credit side represents account contains expenses
cash payments. and losses and the credit
side contains incomes and
gains
Closing The closing balance of this The closing balance of this
balance account represents cash and account represents a
bank balance. surplus or deficit.
Adjustments It does not contain any It contains adjustments for

adjustments. It is prepared on outstanding prepaid
a cash basis. accrued income etc. as it is
prepared on an accrual
basis.
Balance Receipts and payments Income and expenditure
sheet accounts need not be accounts are generally
accompanied by a balance accompanied by a balance
sheet. sheet.
Numerical Questions
1. From the following particulars taken from the Cash Book of a health club,
prepare a Receipts and Payments Account.
Rs.
Opening balance:
Cash in Hand 5,000
Cash at Bank 25,000
Subscriptions 1,65,000
Donations 35,000
Investment Purchased 80,000
Rent Paid 20,000

General Expenses 21,500
Postage and stationery 2,000
Courier charges 1,000
Sundry Expenses 2,500
Closing Cash in Hand 12,000
Ans:
Receipts and Payment A/c
Receipts Amount Payment Amount
To Balance By Investment 80000
b/d: purchased
Cash in hand 5000 By Rent paid 20000
Cash at bank 25000 By General 21500
Expenses
To 165000 By Postage and 2000
Subscriptions Stationary
To Donations By Courier Charges 1000
35000
By Sundry 2500
Expenses
By Balance c/d:
Cash in hand 12000
Cash at bank 91000
230000 230000
2. The Receipt and Payment Account of Harimohan charitable institution

is given:
Receipt and Payment Account for the year ending March 31, 2015
Amount Amount
Receipts Payments
(Rs.) (Rs.)
Balance b/d Furniture 3,000
Cash at Bank 22,000 Investments 55,000

Cash in Hand 8,800 Advance for 20,000
building
Donations 16,000 Charities 60,000
Subscriptions 50,200 Salaries 10,400
Endowment fund 60,000 Rent and 4,000
Taxes
Legacies 12,000 Printing 1,000
Interest on 3,800 Postage 300
Investment
Interest on Deposits 800 Advertisement 1,100
s
Sale of old 500 Insurance 4,800
newspapers
Donation for 16,000 Balance c/d:
building
Legacy for building 12,000 Cash at bank 32,000
Cash in hand 10,500
2,02,100 2,02,100
Prepare the Income and Expenditure Account for the Year ended on March
31, 2015, after considering the following:
Liabilities to be provided for are:
(i) Rent Rs. 800; Salaries Rs. 1,200; advertisement Rs. 200.
(ii) Rs. 2,000 due for interest on investment was not actually received.
Ans:
Income and Expenditure A/c
for the year ending March 31, 2007
Amount Amount
Expenditure Income
To Charities 60000 By Donations 16000

1040
To Salaries 0 By Subscriptions 50200

(+) O/s
Salary 1200 11600 By Legacies 12000
To Rent and By Interest 380

Taxes 4000 on 0
Investment
(+) Accrued 200
(+) O/s Rent 800 4800 Interest 0 5800
By Interest on
To Printing 1000 Deposits 800
By Sale of Old
To Postage 300 Newspapers 500
To Advertisement
1100
(+) O/s
Advertisement
200 1300
To Insurance 4800
To Surplus (BF) 1500
85300 85300
Working:
(i) Legacies = 50% of 24000 = 12000
Donations = 50% of 32000 = 16000
3. From the following particulars, prepare an Income and Expenditure

account:
Amount
Details
(Rs.)
Fees collected, including Rs.80,000 on 5,20,000

account of the
previous year
Fees for the year outstanding 30,000
Salary paidthe the, including Rs. 5,000 on 68,000
account
of the previous year
Salary outstanding at the end of the year 3,000
Entertainment expenses 8,000
Tournament expenses 25,000
Meeting Expenses 18,000
Travelling Expenses 7,000
Purchase of Books and Periodicals, 40,000
including
Rs. 31,000 for purchase of Books
Rent 15,000
Postage, telegrams and telephones 6,000
Printing and Stationery 18,000
Donations received 25,000
Ans:
Amount Amount
Expenditure Income
6800 5200
To Salaries 0 By Fees 0
0
(-) O/s
(-) O/s Salary of Fees of
PY 5000 PY 8000
0
6300 4400
0 0
0

(+) Fees
(+) O/s Salary Receiva 47000
of CY 3000 66000 ble 300 0
00
To Entertainment By Donation
Expense 8000 Received 25000
To Tournament Expense
25000
To Meeting Expense 18000

To Travelling Expense
7000
To Purchase of
Periodicals 9000
To Rent 15000
To Postage,
Telegram, Telephones
6000
To Printing and
Stationary 18000
32300
To Surplus 0
49500 49500
0 0
Working:
Purchase of Periodicals = 40000 – 31000 = 9000
4. Following is the information given in respect of certain items of a Sports

Club. Show these items in the Income and Expenditure Account and the
Balance Sheet of the Club:

Rs.
Sports Fund as on 1.4.2015 35,000
Sports Fund Investments 35,000
Interest in Sports Fund 4,000
Donations for Sports Fund Investment 15,000
Sports Prizes awarded 10,000
Expenses on Sports Events 4,000
General Fund 80,000
General Fund Investments 80,000
Interest on General Fund Investments 8,000
Ans:
Expenditure Amount Income Amount
By Interest on General
Fund
8000
Investment
Balance Sheet
Liabilities Amoun Assets Amount
t
Sports Fund
Sports Fund 35000 Investment 35000
General Fund
(+) Interest Investment
in Sports 4000 80000
Fund
(+)
Donation 15000
for Sports
Fund
54000
(-) Expenses
on Sports 4000
Event

(-) Prize
Awarded 10000 40000
General Fund 80000
5. How will you deal with the following items while preparing for the
Bombay Women Cricket Club its income and expenditure account for the
year ending 31.3.2017 and its Balance Sheet as of 31.3.2017:
Rs.
(a) Donation received during the year for the 12,25,000
construction of a permanent Pavilion
Expenditure incurred up to 31.3.2017 on its 10,80,000
construction
The total estimated expenditure on 25,00,000
construction
of Pavilion being
(b) Tournament Fund:

Balance as on 1.4.2016 10,700
Subscriptions for tournaments received 65,800
during the year
Expenditure incurred during the year on 72,400
conducting
tournaments
(c) Life Membership fee received during the 28,000

year
Give reasons for your answers.

Ans:
(a)
Balance Sheet
as of March 31, 2007

Amount Amount
Liabilities Assets
Donation for 122500 Construction 108000

Pavilion 0 of Pavilion in 0
Progress
(-) Expenses on
Construction of 108000
Pavilion 0 145000
Capital
(+) Pavilion 108000 108000

Construction 0 0
Reason:
A donation for the construction of the Pavilion is a donation for a specific
purpose.
Expense on construction on the Pavilion is a Capital Expenditure.
(b)
Balance Sheet
Amount Amount
Liabilities Assets
1070
Tournament Fund 0
(+) Subscription 6580

for Tournament 0
7650
0

(-) Tournament 7240
Expenses 0 410
0
Reason:
All funds received are treated as capital receipts and expenses related to any fund
are reduced from the concerned funds
(c)
Balance Sheet
Liabilities Amount Assets Amount
Life
Membership 28000
Fee
Reason:
Life Membership Fees are considered as capital receipts and are shown on the
Liabilities side on the Balance Sheet if nothing is specified about its treatment.
But if it is to be treated as a revenue item, then it is shown on the credit side of
the Income and Expenditure account.
6. From the following receipts and payments and information given below,
Prepare Income and Expenditure Account and opening Balance Sheet of
Adult Literacy Organization as of December 31, 2017.
Receipt and Payment Account for the year ending as on December 31, 2017
Amount Amount
Receipts Payments
(Rs.) (Rs.)
General
Balance b/d 3,200
Expenses
Cash in hand 4,000 Newspaper 1,850
Cash at Bank 15,550 Electricity 3,000
Fixed deposit
Subscriptions 18,000
with a bank

(on 31.06.2017)
2016 1,200
@ 10% p.a.
2017 26,500 Books 7,000
2018 500 28,200 Salary 3,600
Sale of old
1,250 Rent 6,500
newspapers
Govt. grant 12,000 Postage charges 300
Furniture
Sale of old furniture 10,500
(purchased)
(book value
3,700 Balance c/d
Rs.5000)
Interest received on
450 Cash in hand 3,000
FD
Cash at bank 8,200
65,150 65,150
Information:
(i) Subscription outstanding as on 31.12.2016 were Rs.2,000 and on
December 31, 2017 were Rs.1,500.
(ii) On December 31, 2017, Salary outstanding was Rs.600, and one month
rent was paid in advance.
(iii) On Jan. 01, 2016 orgnisation owned Furniture Rs.12,000, Books
Rs.5,000.
Ans:
for the year ending December 31, 2017
Amount Amount
Expenditure Income
Loss on sale of old 2650

furniture 1300 Subscription 0
(+) O/s for 2006

General Expenses 3200 1500 28000

Sale of old
Newspaper 1850 newspaper 1250
Electricity 3000 Government 12000

Grant
Interest
360 receive
Salary 0 d on 450
FD
(+) O/s Salary for
2006 (+)
600 4200 Accrue 450
d
interest
650
Rent 0
(-) Prepaid for

2007 500 6000
[6500 x (1/3)]
Postage Charges 300
Surplus 22300
42150 42150
Balance Sheet
as of December 31, 2017

Subscription
Capital Fund (BF) 38550 Outstanding 2000
Cash in hand 4000

Cash at bank 15550
Furniture 12000
Books 5000
38550 38550
Balance Sheet
Amount Amoun
Liabilities Assets t
3855
Capital 0 Prepaid Rent 500
(+)
Surplus 2230
0 60850 Books 5000
Salary O/s 600 (+) Purchases 7000 12000

Subscription
received in 1200
advance 500 Furniture 0
1050
(+) Purchases 0
2250
0
(-) Sale 5000 17500

1800
Fixed Deposit 0
(+) Accrued
Interest 450 18450
Cash in hand 3000

Cash at bank 8200
O/s Subscription
for 2006 1500
(+) O/s for 2005 800 2300

61950 61950
7. The following is the Receipt and Payment Account of the Nari Kalyan
Samittee for the year ended December 31, 2017:
Amount Amount
Receipts Payments
(Rs.) (Rs.)
Balance from last 2,270 Rent 6,600
year b/d
Subscriptions 32,500 Electric charges 3,200
Life membership fee 3,250 Lecturer’s fee 730
Donation 2,500 Office expenses 1,480
Profit from 7,250 Printing and 1,050
entertainment Stationery
Sale of old Books 750 Legal fee 1,870
(books value Books 6,500
Rs.1,000)
Interest 350 Furniture 8,600
purchased
Expenses on nukar 1,300
drama
Balance c/d: 8,040
Cash in hand
Cash at bank 9,500
48,870 48,870

You are required to prepare an Income and Expenditure Account after the
following adjustments:
(a) Subscription still to be received are Rs.750, but subscription includes
Rs.500 for the year 2018.
(b) At the beginning of the year the Samiti owned building Rs.20,000 and
furniture Rs.3,000 and Books Rs.2,000.
(c) Provide depreciation on furniture @5% (including purchase ), books
@ 10% and building @ 5%.
Ans:
Amount Amount
Expenditure Income
3250
Rent 6600 Subscription 0
(+) O/s for

Electric Charge 3200 2006 750
3325
Lecture's fee 730 0
(-) Advance
Office Expenses 1480 for 2007 500 32750
Depreciation
on: Donation 2500
Profit from
Books 750 Entertainment 7250
Furniture 580 Interest 350

100
Building 0 2330

Printing and
Stationery 1050
Legal fee 1870
Expenses on
Nukar Drama 1300
Loss on sale
of books 250
Surplus 24040
42850 42850
Balance Sheet
Capital Fund (BF)
27270 Building 20000
Furniture 3000
Books 2000
Cash and Bank 2270
27270 27270
Balance Sheet
Amount Amount
Liabilities Assets

2727 2000
Capital Fund 0 Building 0
(+) Life (-) 5%

Membership Depreciatio
Fees 3250 n 1000 19000
2404
(+) Surplus 0 54560 Furniture 3000
Advance (+)
Subscription for 500 Purchase 8600
2007
1160
0
(-) 5%
Depreciatio
n 580 1102
0
Books 2000
(+)
Purchase 6500
8500

(-) Sales 1000
7500
(-) 10%
Depreciatio
n 750 6750
Cash in 8040
hand
Cash at
bank 9500
O/s
Subscriptio
n 750
5506 55060
0
8. Following is the Receipt and Payment Account of Indian Sports Club,

prepared Income and Expenditure Account, Balance Sheet as of December
31, 2017:
Receipt and Payment Account for the year ending December 31, 2017
Amount Amount
Receipts Payments
(Rs.) (Rs.)
Balance b/d 7,890 Salary 11,000

Subscriptions 52,000 Electric charges 5,500
Life membership fee 2,200 Billiard Table 17,500
Entrance fee 3,200 Office expenses 4,100
Tournament fund 26,000 Printing & 2,300
Stationery
Locker Rent 1,250 Tournament 18,500
expenses
Sale of old sports Repair of ground 2,000
equipment
(Costing Rs.2,200) 2,500 Furniture 7,700
Sale of old 750 purchased Sports 12,000
newspaper equipment
Legacy 37,500 Cash in hand 12,690
Cash at bank 10,000
Fixed deposit 30,000
(on 1.10.2017 for
10% p.a)
1,33,29 1,33,290
0
Other Information:
Subscription outstanding was on December 31, 2016, Rs.1,200 and Rs.3,200
on December 31, 2017. Locker rent outstanding on December 31, 2017
Rs.250. Salary outstanding on December 31, 2017, Rs.1,000.
On January 1, 2017, club has Building Rs.36,000, furniture Rs.12,000,
Sports equipments Rs.17,500. Depreciation charged on these items @ 10%
(including Purchase).
Ans:
Amount Amount
Expenditure Income
1100 5200
Salary 0 Subscription 0

(+) O/s
Salary for (+) O/s for 2016
2006 1000 12000 3200
5520
Electric Charge 5500 0
(-) O/s for 2015

Office Expenses 4100 1200 54000
Depreciation
on: Locker Rent 1250
(+) O/s for 2016

Furniture 197 250 1500
0
Building 360 Entrance Fees 3200
0
Sports Profit on sale of sports
Equipment 273 8300 equipment 300
0
Printing and (2500 -
Stationery 2200)
2300
2000 Sale of Old Newspaper 750
Repair of
Ground
Surplus 26300 Accrued Interest 750
60500 60500
Balance Sheet
Subscription O/s
Capital Fund (BF) 74590 1200
Building 36000

Furniture 12000
Books 17500
Cash and Bank 7890
74590 74590
Balance Sheet
Amount Amount
Liabilities Assets
Salary O/s 1000 Subscription 3200

O/s
Tournament 2600 250
Fund 0 Locker Rent
O/s
(-)
Tournament 1850 3600
Expenses 0 7500 Building 0
(-) 10%
7459 Depreciation 32400
Capital Fund 0 3600
(+) Life
Membership 1200
Fees 2200 Furniture 0
3750 (+)
(+) Legacy 0 Purchase 7700
2630 14059 1970

(+) Surplus 0 0 0
(-) 10%
Depreciation
1970 17730
Sports 1750
Equipment 0

(+) 1200
Purchase 0
2950
0
(-) Sales 2200
2730
0
(-) 10%
Depreciation
2730 24570
Billiard
Table 17500
Cash in hand
12690
Cash at bank
10000
Fixed 3000
Deposit 0
(+)
Accrued
Interest 750 30750
1490 14909
90 0
9. From the following Receipt and Payment Account of Jan Kalyan Club,
prepare Income and Expenditure Account and Balance Sheet for the year
ending March 31, 2017.

Receipts Amount Payments Amount
(Rs.) (Rs.)
Cash in hand as on 6,800 Salaries 24,000
1.4.16
Subscription 60,200 Travelling 6,000
Expenses
Donation 3,000 Stationery 2,300
Sale of furniture 4,000 Rent 16,000
(Book value Repair 700
Rs.6000)
Entrance fee 800 Books purchased 6,000
Life membership fee 7,000 Building 30,000
purchased
Interest on 5,000 Cash in hand as 1,800
investment 31.03.2017
(@ 5% for full-year)
86,800 86,800
Additional Information:
As on As on
01.04.2016 31.03.2017
(i) Subscription received in 1,000 3,200
advance
(ii) Outstanding subscription 2,000 3,700
(iii) Stock of stationery 1,200 800
(iv) Books 13,500 16,500
(v) Furniture 16,000 8,000
(vi) Outstanding rent 1,000 2,000
Ans:
Amount Amount
Expenditure Income

6020
Loss on sale of (+) O/s for 2006

Furniture 2000 3700
6390
(6000 - 4000) 0
Travelling Expense (-) O/s for 2005

6000 2000
Depreciatio 6190
n on: 0
(+) Advance in
Furniture 2000 2005 1000
6290
Books 3000 5000 0
(-) Advance in
Stationary 2300 2006 3200 59700
(+)
Opening
Stock 1200 Donation 3000
3500 Entrance Fees 800

(-) Closing Interest on Investments
Stock 800 2700 5000
Repairs 700
1600
Rent 0

(-) O/s for
2005 1000
1500
0
(+) O/s for

2006 2000 17000
Surplus 11100
68500 68500
Balance Sheet
Advanced
Subscription 1000 Cash in hand 6800
Investment [5000 x
O/s Rent 1000 (100/5)] 100000
Capital Fund
(BF) 137500 O/s Subscription 2000
Stock of Stationary 1200

Books 13500
Furniture 16000
139500 139500
Balance Sheet

Amount Amount
Liabilities Assets
Advanced Subscription 3200 Subscription O/s 3700

Stock of Stationary
O/s Rent 2000 800
13750 10000
Capital Fund 0 Investments 0
(+) Life
Membership 1600
Fees 7000 Furniture 0
15560
(+) Surplus 11100 0 (-) Sales 6000
1000
0
(-)
Depreciatio
n 2000 8000
1350
Books 0
(+)
Purchase 6000
1950
0
(-)
Depreciatio
n 3000 16500

Building 30000
Cash in hand 1800
16080 16080
0 0
10. Receipt and Payment Account of Shankar Sports club is given below,
for the year ended March 31, 2017
Amount Amount
Receipts Payments
(Rs.) (Rs.)
Opening Cash in 2,600 Rent 18,000
hand
Entrance fees 3,200 Wages 7,000
Donation for building 23,000 Billiard table 14,000
Locker rent 1,200 Furniture 10,000
Life membership fee 7,000 Interest 2,000
Profit from 3,000 Postage 1,000
entertainment
Subscription 40,000 Salary 24,000
Cash in hand 4,000
80,000 80,000
Prepare Income and Expenditure Account and Balance Sheet with help of
the following Information:
Subscription outstanding on March 31, 2016,ofofThe stock is Rs.1, 200 and
Rs.2, 300 on March 31, 2017, opening stock of postage stamps is Rs.300 and
closing stock is Rs. 200, Rent Rs.1, 500 related to 2015 and Rs.1, 500 is still
unpaid.
On April 1, 2016 the club owned furniture Rs.15, 000, Furniture valued at
Rs. 22,500 as on March 31, 2017. On March 31, 2016, the club had a loan of
Rs.20,000 (@ 10% p.a).
Ans:

Amount Amount
Expenditure Income
Subscription 4000
Salary 24000 0
(+) O/s for

Wages 7000 2006 2300
Depreciation on 4230
Furniture 2500 0
(-) O/s for

Interest 2000 2005 1200 41100
1800
Rent 0 Entrance Fees 3200
(+) O/s for

2006 1500 Locker Rent 1200
1950 Profit from

0 Entertainment 3000
(-) O/s for

2005 1500 18000 Deficit (BF) 6100
Postage 1000
(+) Opening
Stock 300
1300
(-) Closing
Stock 200 1100

54600 54600
Balance Sheet
10% Loan 20000 Cash in hand 2600
Stock of Postage
Stamps
O/s Rent 1500 300
O/s Subscription
1200
Furniture 15000
Capital Fund Deficit
(BF) 2400
21500 21500
Balance Sheet
Amount Amount
Liabilities Assets
10% Loan 20000 Subscription O/s 2300

The stock of Postage
O/s Rent 1500 Stamps 200
Donation for Building Billiard Table

23000 14000

- 240
0
Capital Fund Cash in hand 4000
(+) Life
Membership 700 1500
Fees 0 Furniture 0
610 (+) 1000

(-) Deficit 0 Purchase 0
2500
0
(-)
Depreciation
2500 22500
Capital Fund Deficit

1500
44500 44500
11. Prepare Income and Expenditure Account and Balance Sheet for the
year ended March 31, 2016, from the following Receipt and Payment
Account and Balance Sheet of culture club:
Amount Amount
Receipts Payments
(Rs.) (Rs.)
Opening cash 12,000 Furniture 4,000
balance
Subscription Telephone 800
expenses
2014-15 2,000 Salary

2015-16 22,000 24,000 2014-15 1,000
Entrance fees 2,800 2015-16 4,000
Locker rent 1,000 Newspapers 700
Life membership fee 1,200 Sundry expenses 1,000
Government grant 11,000 Defence bonds 18,000
Land 20,000
Closing cash 2,500
balance
52,000 52,000
Balance Sheet for the year ending March 31, 2015

Amount Amount
Liabilities Assets
(Rs.) (Rs.)
Advance locker rent 200 Cash in hand 12,000
Subscription 1,000 Outstanding 3,000
received in subscription
Advance Building 35,000
Outstanding salary 2,000
Loan 10,000
Capital fund 36,800
50,000 50,000
Ans:

Amount Amount
Expenditure Income
2200
Telephone (+) Advance in

Expenses 800 2005 1000 23000
Newspaper 700 Locker Rent 1000

Sundry (+) Advance in
Expenses 1000 2005 200 1200
Surplus 31500 Entrance Fees 2800

Government Grants 11000
38000 38000
Balance Sheet
Amount Amount
Liabilities Assets
Subscription
Loan 10000 O/s for 2015 1000
(3000 -
O/s Salary for 2005 1000 2000)
3680
Capital Fund 0 Furniture 4000
(+) Life Defence bonds

Membership 1200 18000
Fees
3150
(-) Deficit 0 69500 Land 20000
Building 35000
Cash in hand 2500
80500 80500

12. From the following Receipt and Payment Account prepare final
accounts of a Unity Club for the year ended March 31, 2017
Receipt and Payment Accounts for the year ending March 31, 2017
Amount Amount
Receipts Payments
(Rs.) (Rs.)
Balance b/d 15,000 Furniture 18,000
Sale of Old Library books 10,000
furniture
(costing Rs. 6,000) 4,000 Salaries 72,000
Subscriptions: General expenses 18,000
2015-16 Electric charges 12,000
18,0
00
2016-17 Newspapers 33,800
60,0
00
2017-18 90,000 Postage 3,000
12,000
Sale of old 10,800 Stationery 40,000
newspapers
Profit from 44,000 Audit fee 8,000
entertainment
Rent 84,000 Balance c/d 33,000
2,47,80 2,47,800
0
Balance Sheet as of March 31, 2016

Amount Amount
Liabilities Assets
(Rs.) (Rs.)
Outstanding 6,000 Cash 15,000
Salary
Capital Fund 6,94,000 Outstanding 18,000
subscription
Library Books 30,000
Furniture 37,000
Land and 6,00,000
Building

7,00,000 7,00,000
1. The Club had 500 members each paying an annual subscription of Rs.
150.
2. On 31.3.2017 salaries outstanding amounted to Rs. 1,200 and salaries
paid included Rs. 6,000 for the year 2015-16.
3. Provide 5% depreciation on Land and Building.
Ans:
Amount Amount
Expenditure Income
Loss on sale of Old

Furniture 2000 Subscription 75000
(500 members at
(6000 - 4000) Rs.150 each)
Sale of Old
General Expenses 18000 Newspaper 10800
Profit from
Electric Charges 12000 Entertainment 44000
Salaries 72000 Rent 84000

(+) O/s for
2005-06 1200 Deficit (BF) 200
73200
(-) O/s for
2006-07 6000 67200
Newspaper 33800
Postage 3000

Stationary 40000
Audit Fees 8000
Depreciation on Land
and Building 30000
214000 214000
Balance Sheet
as on March 31, 2017
Amount Amount
Liabilities Assets
Advance
Subscription for
2007-08 12000 Subscription O/s 15000
O/s Salaries 1200 Cash and Bank 33000

Capital 69400
Fund 0 Furniture 37000
69380 (+)
(-) Deficit 200 0 Purchase 18000
55000
(-) Sales 6000 49000
Library
Books 30000
(+)
Purchase 10000 40000
Land and 60000

Building 0

(-) 5%
Depreciation 57000
30000 0
70700 70700
0 0
13. Following is the information in respect of certain items of a Sports Club.

You are required to show them in the Income and Expenditure Account and
the Balance Sheet
Amount
Details
(Rs.)
Sports Fund as on April 1, 2016 80,000
Sports Fund Investments 80,000
Interest in Sports Fund Investments 8,000
Donations for Sports Fund 30,000
Sports Prizes awarded 16,000
Expenses on Sports Events 7,000
General Fund 2,00,000
General Fund Investments 2,00,000
Interest on General Fund 20,000
Investments
Ans:
Income and Expenditure A/c for the year ending March 31, 2016
By Interest in
General Fund
20000
Investment
Balance Sheet as of March 31, 2016

Amount Amount
Liabilities Assets
Sports Fund
(+) Interest in General Fund

(+) Donation for

Sports Fund 30000
11800
0
(-) Events 7000

(-) Sports Prize
Awarded 16000 95000
General Fund 200000
14. Receipt and Payment Account of Maitrey Sports Club showed that Rs.
68,500 were received by way of subscriptions for the year ended on March
31, 2017.
The additional information was as under:
1. Subscription Outstanding as of March 31, 2016, was Rs. 6,500,
2. Subscription received in advance as of March 31, 2016, were Rs. 4,100,
3. Subscription Outstanding as of March 31, 2017, were Rs. 5,400,
4. Subscription received in advance as of March 31, 2017, were Rs. 2,500.
Show how that above information would appear in the final accounts for
the year ended on March 31, 2017, of Maitrey Sports Club.
Ans:

Expenditure Amount Amount
Income
6850
Subscription 0
(-) O/s on March

31, 2015 6500
6200
0
(+) Advance on
March 31, 2005 4100
(+) O/s on March

31, 2016 5400
7150
0
(-) Advance on
March 31, 2016 2500 69000
Balance Sheet
Subscription in Subscription
Advance 4100 Outstanding 6500
Balance Sheet

Subscription in Subscription
Advance 2500 Outstanding 5400
15. Following is the Receipt and Payment account of Rohatgi Trust :

Amount Amount
Receipts Payments
(Rs.) (Rs.)
Cash in hand 14,000 Rent 6,000
Cash at bank 60,000 Salary 12,000
Subscription: Postage 300
2016 5,000 Electricity charges 6,000
2017 83,000 Purchase of 20,000
2018 3,000 furniture
Sale of investment Books 3,000
91,000
Defence Bonds 1,50,000
90,000
Interest on investment 2,000 Help to needy 22,000
students
Sale of furniture 3,200 Cash in hand 10,900
(book value Rs.3,000) Cash at bank 30,000
2,60,200 2,60,200
Prepare Income and expenditure account for the year ended December 31,
2017, and a balance sheet as of that date after the following adjustments:
Subscription for 2017, still owing were Rs. 7,000. Interest due on defence
bonds was Rs.7,000, Rent still owing was Rs. 1,000. The Book value of
investment sold was Rs. 80,000, Rs. 30,000 of the investment were still in
hand. Subscription received in 2017 included Rs. 400 from a life member.
The total furniture on January 1, 2017, was worth Rs.12,000. Salary paid
for the year 2018 is Rs.2,000.
Ans:

Amount Amount
Expenditure Income
8300
Postage Charges 300 Subscription 0
(+) O/s for 2016

Electricity 6000 7000
Help to needy 9000

students 22000 0
(-) Life
membership
Salary 6000 Fees 400 89600
(+) O/s
Salary for Interest Accrued on
2006 1000 7000 Defence Bonds 7000
1200 Profit on sale of

Rent 0 investments 10000
(-) Prepaid
for 2017 2000 10000 (90000 - 80000)
Profit on sale of furniture

Surplus 63500 200
(3200 - 3000)
Interest on Investments
2000

10880 10880
0 0
Balance Sheet
Amount Amount
Liabilities Assets
Capital Fund (BF) Subscription Outstanding

201000 5000
Cash in hand 14000

Cash at bank 60000
Furniture 12000
Investment (80000 +
30000) 110000
201000 201000
Balance Sheet
as of The salary December 31, 2017
Amount Amount
Liabilities Assets
20100
Capital 0 O/s Subscription 7000
Defence 15000
(+) Surplus 63500 Bonds 0

(+)
Accrued Int.
(+) Life 26490 on Def. 15700
Membershi 400 0 Bonds 7000 0
p Fees
Subscription received
in advance 3000 Furniture 12000
(+)
O/s Rent 1000 Purchases 20000
32000
(-) Sale 3000 29000
Investments 30000
Advance Salaries 2000
Cash in hand 10900
Cash at bank 30000
Books 3000
26890 26890
0 0
16. Following Receipt and Payment Account was prepared from the cash
book of Delhi Charitable Trust for the year ending December 31, 2017
Receipts Amount Payment Amount
(Rs.) (Rs.)
Balance b/d Charity 11,500
Cash in hand 11,500 Rent and taxes 3,200
Cash at bank 12,600 Salary 6,000
Donation 9,000 Printing 600
Subscription: 42,800 Postage 300
Legacies 18,000 Advertisements 4,500

Interest on 4,500 Insurance es 2,000
investment
Sale of old 200 Furniture 21,600
newspapers
Investment 23,000
Balance c/d:
Cash in hand 9,900
Cash at bank 16,000
98,600 98,600
Prepare Income and expenditure account for the year ended December 31,
2017, and a balance sheet as ofofThe salaryofofThe stock that date after the
following adjustments:
(a) It was decided to treat one-third of the amount received on account of
donation as income.
(b) Insurance premium was paid in advance for three months.
(c) Interest on investment Rs.1,100 accrued was not received.
(d) Rent Rs.600: salary Rs.900 and advertisement expenses Rs.1,000
outstanding as of December 31, 2018.
Ans:
Amou Amount
Expenditure nt Income
200 Interest on 450

Insurance 0 Investments 0
(-) Prepaid [2000 (+) Accrued 110

x (3/15)] 400 1600 Interest 0 5600
Rent and Taxes 320 Donation [9000 x (1/3)]

0 3000
(+) O/s Rent 600 3800 Subscription 42800

600 Sale of Old Newspaper
Salary 0 200
(+) O/s Salary 900 6900

450
Advertisement 0
100
(+) O/s 0 5500
Charity 11500
Printing 600
Postage 300
Surplus 21400
51600 51600
Balance Sheet
Cash at hand
Capital Fund (BF) 24100 11500
Cash at bank
12600
24100 24100
Balance Sheet
Amount Amount
Liabilities Assets

2410 Prepaid Insurance [2000
Capital 0 x (3/15)] 400
2140 Investments 2300

(+) Surplus 0 0
(+)
1800 Accrued
(+)Legacies 0 Interest 1100 24100
(+) Donation
[9000 x (2/3)] 6000 69500 Furniture 21600
O/s Rent 600 Cash in hand 9900

O/s Salary 900 Cash at bank 16000
O/s Advertisement
Expenses 1000
72000 72000
17. From the following Receipt and Payment Account of a club, prepare
Income and Expenditure Account for the year ended March 31, 2017, of
and the Balance Sheet as of that date.
Amount Amount
Receipts Payments
(Rs.) (Rs.)
Balance b/d 3,500 General expenses 900
Subscription: Salary 16,000
2015-16 Postage 1,300
2,0
00
2016-17 Electricity 7,800
70,0 charges
00
2017-18 75,000 Furniture 26,500
3,000
Sale of old Books 2,000 Books 13,000

(costing Rs.3,200) Newspapers 600
Rent from use of the 17,000 Meeting expenses 7,200
hall
Sale of newspapers 400 T.V. set 16,000
Profit from 7,300 Balance c/d 15,900
entertainment
1,05,20 1,05,200
0
(a) The club has 100 members each paying an annual subscription of
Rs.900. Subscriptions outstanding on March 31, 2016, were Rs.3,600.
(b) On March 31, 2017, salary outstanding amounted to Rs.1,000, Salary
paid included Rs. 1,000 for the year 2016.
(c) On April 1, 2017 the club owned land and building Rs.25,000, furniture
Rs.2,600 and books Rs.6,200.
Ans:
Amount Amount
Expenditure Income
1600 Subscription 7000

Salary 0 0
(+) O/s for (+) O/s for 2000

2016 1000 2016 0 90000
1700 Rent from use of the hall

0 17000
(-) O/s for Sale of Old Newspaper

2015 1000 16000 400
Profit from Entertainment

General Expenses 900 7300

Loss on sale of Old
Books 1200
Electricity Charges 7800

Newspaper 600
Meeting Expenses 7200
Postage 1300
Surplus 79700
114700 114700
Balance Sheet
O/s Salary 1000 O/s Subscription 3600
Capital Fund (BF) 39900 Furniture 2600
Books 6200
Cash and Bank
3500
Building 25000
40900 40900
Balance Sheet
as of, December 31, 2017
Amount , Amount
Liabilities Assets
3990 O/s Subscription 2000

Capital 0 2016 0

(+) 2015
(+) 7970 11960 Subscription still O/s
Surplus 0 0 1600 21600
Advanced
Subscription 3000 Furniture 2600
2650
O/s Salary 1000 (+) Purchase 0 29100
Books 6200
1300
(+) Purchase 0
1920
0
(-) Sales 3200 16000

Building 25000
T.V. Set 16000
Cash and Bank 15900
12360 12360
0 0
18. Following is the Receipt and Payment Account of Women’s Welfare

Club for the year ended December 31, 2017:
Amount Amount
Receipts Payments
(Rs.) (Rs.)
Balance b/d 7,250 Salary 12,500
Subscriptions 81,750 Stationery 1,700
Donations 3,000 Electricity 9,550
charges
Grant from 15,000 Insurance 7,500
Government
Sale of newspapers 300 EquipmentAdva 30,000
nced
Proceeds of charity 16,500 Petty expenses 500
show
Interest on 7,000 Expenses on 12,900
investments charity show
@ 10% for full year Newspapers 1,000
Sundries income 400 Lectures fee 16,500
Honorarium to 12,000
Secretary
Balance c/d 27,050
1,31,200 1,31,200
01.01.2017 31.12.2017
(Rs.) (Rs.)
Outstanding salaries 1,200 1,800
Insurance prepaid 700 300
Subscription outstanding 3,750 2,500
Subscription received in advance 1,750 1,000
Electricity charges outstanding — 1,250
Stock of stationery 2,250 700
Equipments 25,600 50,200
Building 1,20,000 1,14,000
Prepare Income and Expenditure Account for the year ended December 31,
2017, and Balance Sheet as on date.
Ans:

Amount Amount
Expenditure Income
125
(+) O/s for 180

2017 0 (+) O/s for 2017 2500
143
00 84250
(-) O/s for 120 1310

2016 0 0 (-) O/s for 2016 3750
170
Stationary 0 80500
(+) Opening 225 (+) Advance on

Stock 0 2016 1750
395
0 82250
(-) Closing (-) Advance on 8125

Stock 700 3250 2017 1000 0
Electric 955
Charges 0 Donations 3000
(+) O/s for 125 1080 1500

2017 0 0 Grant from Government 0
750
Insurance 0 Sale of Newspaper 300
(+) Prepaid Profit from Charity Show

in 2016 700 (16500 - 12900) 3600

820
0 Interest on Investments 7000
(-) Prepaid in
2017 300 7900 Sundries Income 400
Dep. on Equipment
5400
Petty Expenses
500
Newspaper 1000
Lecture Fees 1650

0
Honorarium to 1200
Secretary 0
Dep. on Building
6000
3410
Surplus 0
1105 1105
50 50
Balance Sheet
as of,full-yeara December 31, 2016
Amount Amount
Liabilities Assets
O/s Salary 1200 Insurance Prepaid 700

Subscription in
Advance 1750 O/s Subscription 3750

Capital Fund (BF)
226600 Stock of Stationary 2250
Equipment 25600
Building 120000
Cash and Bank 7250
Investment [7000 x (100/10)]
70000
229550 229550
Balance Sheet
Amount Amount
Liabilities Assets
22660
Capital 0 Equipment 25600
(+)
Surplus 34100 260700 (+) 30000
Purchase
Advance
Subscription 1000 55600
(-)
O/s Salary 1800 Depreciatio 5400 50200
n
O/s Electricity 12000
Charges 1250 Building 0
(-)
Depreciatio 6000 114000
n
Insurance Prepaid 300
O/s Subscription 2500

Stock of Stationary 700
Cash and Bank 27050
Investments 70000
264750 264750
19. As ofAdvanced March 31, 2015, the following balances have been
extracted from the books of the Indian Chartered Accountants Recreation
Club and you are asked to prepare an Income and Expenditure Account for
the year ended March 31, 2017, and a Balance Sheet as at that date.
Debit Balances Credit Balances
(Rs.) (Rs.)
Purchases 24,660 Subscriptions 9,7110
Dining Room 32,370 Billiard's Receipts 7,300
Rent 10,470 Sunday Receipts 410
Wages 18,690 Interest on Fixed 270
Deposit
Repairs and 5,400 Sundry Creditors 5370
Renewals
Fuel and Light 5,280 Grant from Institute 42,000
Misc. Expenses 4,050 (permanent)
Cash in hand 1,730 Income and Exp. A/c 1,380
Cash at bank 2,760 (2016)
Fixed Deposit 8,500
Sundry Debtors 2,250
Stationary 600
Billiard Table 2,070
Fixtures and 870
Fittings
Furniture 4,140
Club Premises 30,000
1,53,840 1,53,84
0
On March 31, 2016, of the full year, the stock of Stationary consisted of Rs.
900 and March 31, 2017 Rs. 60 respectively. Provide depreciation Rs. 60

on fixtures and fittings, Rs. 390 on billiard table and Rs. 560 on furniture.
Ans:
Note – The credit side on the Trial Balance is short by 60 Rs. Thus, we will be
required to open the Suspense Account in this case.
Note – The closing stock should be Rs. 960 instead of Rs. 900
Books of Indian Chartered Accountants Recreation Club
Restaurant Trading Account
Dr. Cr.
Particulars Amount Particulars Amount
Rs Rs
Opening Stock 1,170 Receipts from Dining Room 87,660
Purchases 24,660 Closing Stock 960

Dining Room 32,370
Exp.
Profit from 30,420
Restaurant
88,620 88,620
Income and Expenditure Account

As on March 31, 2017
Dr. Cr.
Rs Rs
Rent 10,470 Subscriptions 9,450

Wages 18,690 Sundry 410
Receipts

Repairs and Interest on
Renewals 5,400 Fixed 270
Deposits
Profit from
Fuel and Light 5,280 Restaurant 30,420
Billiards
Misc. Expenses 4,050 Receipts 7,300
Depreciation on
Fixtures and
Fittings 60
Billiards Table 390

Furniture 560 1,010
Surplus (Excess
of Income over 2,950
Expenditure)
47,850 47,850
Balance Sheet
As of March 31, 2017
Rs Rs
Sundry Creditors 5,310 Cash in Hand 560

Grant from
Institute 42,000 Cash at Bank 2,760
Suspense 60 Fixed Deposit 8,500

Capital
Fund
(Income
and Exp.
A/c as on
Apr.01,
2016) 1,380 Sundry Debtors 2,250
Add: China Glass, Cutlery

Surplus 2,950 4,330 and Linen 600
Billiards Table 2,070

Less:
Depreciation (390) 1,680
Fixture and
Fittings 870
Less:
Depreciation 810
(60
)
Furniture 4,140
Less:
Depreciation (560) 3,580
Club Premises 30,000
Stock of Restaurant 960

51,700 51,700

NCERT Solutions For Class 12 Accountancy Chapter 1 - Accounting For Not For Profit Organisation - 67p

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

NCERT Solutions For Class 12 Accountancy Chapter 1 - Accounting For Not For Profit Organisation - 67p

Uploaded by

Copyright:

Available Formats

NCERT Solutions for Class 12

Chapter 1 - Accounting For Not for Profit Organisation

1. State the meaning of ‘Not-for-Profit’ organizations?

2. State the meaning of receipt and payment account?

3. State the meaning of income and expenditure account

4. What are the features of Receipt and Payment accounts?

5. What steps are taken to prepare an Income and Expenditure account

6. What is a subscription? How is it calculated?

Class XII Accountancy www.vedantu.com 2

Total subscriptions received during the year ……….

Subscription to be shown in income and expenditure ……….

7. What is the capital fund? How it is calculated?

Class XII Accountancy www.vedantu.com 3

Capital fund at the end of the year ……….

8. Explain the statement: “Receipts and Payment Account is a summarised

Class XII Accountancy www.vedantu.com 4

Receipts and Payments Income and Expenditure

Nature of It is a real account. It is a nominal account.

Nature It is a summarised form of cash It is similar to the profit and

Class XII Accountancy www.vedantu.com 5

Capital and It includes the recording of It contains recordings of

Period It includes reception and It includes income and

Opening The opening balance It does not contain any

Adjustments It does not contain any It contains adjustments for

Class XII Accountancy www.vedantu.com 6

Class XII Accountancy www.vedantu.com 7

12. Show the treatment of the following items by a not-for-profit

(ii) Specific donation

Class XII Accountancy www.vedantu.com 8

(iv) Sale of old periodicals

(v) Sale of sports materials

(vi) Life membership fee

Class XII Accountancy www.vedantu.com 9

Date Particul- L.F. Amo- Date Particul- L.F. Amou-

Class XII Accountancy www.vedantu.com 10

14. What is a Receipt and Payment Account? How is it different from

Receipts and Payments Income and Expenditure

Nature of It is a real account. It is a nominal account.

Nature It is a summarised form of It is similar to the profit

Capital and It includes the stock recording It contains recordings of

Period It includes reception and It includes income and

Class XII Accountancy www.vedantu.com 11

Adjustments It does not contain any It contains adjustments for

Class XII Accountancy www.vedantu.com 12

Cash in hand 12000

Cash at bank 91000

2. The Receipt and Payment Account of Harimohan charitable institution

Class XII Accountancy www.vedantu.com 13

To Charities 60000 By Donations 16000

Class XII Accountancy www.vedantu.com 14

To Rent and By Interest 380

3. From the following particulars, prepare an Income and Expenditure

Class XII Accountancy www.vedantu.com 15

Class XII Accountancy www.vedantu.com 16

To Meeting Expense 18000

4. Following is the information given in respect of certain items of a Sports

Class XII Accountancy www.vedantu.com 17

Class XII Accountancy www.vedantu.com 18

General Fund 80000

(b) Tournament Fund:

(c) Life Membership fee received during the 28,000

Give reasons for your answers.

Class XII Accountancy www.vedantu.com 19