‘Wunacademy Special class on A Practice Session on NPO - Part VIII July 6, 2020 + Ca Sushant Soni@ wusrrarions The following was the Receipts and Payments Account of Exe Club for the year ended March. 31, 2016 Allthe figures in thousands Cashin hand Balance at Bank as per Pass Book: Deposit Account Current Account Bank Interest Donations and Subscriptions Receipts from teas Contribution to fares Sale of Equipment ‘Net proceeds of Variety Entertainment Donation for forth coming Tournament 100 2.230) 600 30 2,600 300 100 80 780) 1,000) 7,820) ‘Groundsman’ Fee 750 ‘Moving Machine 1,500 Rent of Ground 250 (Cost of Teas 250 Fares 400 Printing & Office Expenses 280 Repairs to Equipment 500 Honorarium to Secretary and Treasurer of2015 400 Balance at Bank as per Pass Book: Deposit Account 3,090 (Current Account 150 Cashin hand 250 7.820You are given the following additional information: ‘Subscription due 150 100 “Amount due for printing etc. 100) 80 ‘Cheques unpresented being payment for repairs 300) 260 Estimated value of machinery and equipment 800 1750 Interestnot yet entered inthe Pass book 20 ‘Bonus to Groundsman o/s. 300 For the year ended March. 31, 2016, the honorarium to the Secretary and Treasurer are to be increased by a total of £200. Required Prepare the Income and Expenditure Account for period ending 31-03-2016 and the relevant Balance Sheet.To Groundsman's fee To Rent of Ground To Fares' Expenses Less : Contribution To Printing & Office Expenses To Repairs ‘To Depreciation on Machinery pening balance and Purchases ‘Less: Closing Balance Less: Sale ‘To Honorarium to Sect. & Treasurer ‘To Bonus to Groundsman To Excess of Income over Expenditure Income and Expenditure Account of Exe Club forthe year ending 31st March, 2016 (100) 2300 (1750) 550 750) 250) 300 | 260 470 300 3.430) (all figures in thousand) By Donations and Subscription) 2,550 By Receipts from teas 50 (Fares) ess expenses (@300 -€250) By Proceeds of Variety Entertainment 780 By Interest (€30 + £20) 50Balance Sheet of Exe Club as on 31st March, 2016 Outstanding Expenses: Groundsman Bonus 300| Cash in hand 250 Printing 80| Cash in Deposit A/c 3,090 Honorarium 600| Subscription Due 100 Bank Overdraft (€260-150) 110] interest Due 20 Capital Fund: Opening Machinery & Equipments 1,750 ‘Add: Surplus for the year 3,129 Tournament Fund (Donation) 1,000) 5,210) 210 Balance Sheet as on 1st April, 2015, Cees | Te ae | Outstanding Expenses and ‘Cashin hand 100 Honorarium (100 + %400) '500| Cash in Deposit A/c 2230 Capital Fund (Balancing Figure) 3,080 Cash in Current A/c 300 Subscription Due 150 ‘Machinery 300 3580) 3580= @ iwstearions The Income and Expenditure Account ofthe Youth Club for the Year 2016 is as follows: To To To To To To To To To Salaries General Expenses Audit Fee Secretary Honearum Stationery @ Printing Annual Dinner Expenses Interest Bank Charges Depreciation ~> Bis Surplus Ee 4,750) ‘500 250 1,000) 450 1,500) 150 300 600) 9500) 7,500 250 1,000 750 9,500This account had been prepared after the following adjustments: Subscription outstanding at the end of 2015 ‘Subscription received in Advance on 31st December, 2015 ‘Subscription received in advance on 31st December, 2016 Subscription outstanding on 31st December, 2016 Salaries Outstanding at the beginning and the end of 2016 were respectively © 400 and 8450. General Expenses include insurance prepaid to the extent of 860. Audit fee for 2016 is as yet unpaid. During 2016 ‘uit fe for 2015 was paid amounting to200. The Club owned a freehold lease of ground valued at £10,000. The club had sports equipment on Ist January, 2016valued at 72,600. At the end ofthe year, after depreciation, this equipment amounted to £2,700. In 2015, the ‘lub has raised a bank loan of 2,000. This was outstanding throughout 2016. On 31st December, 2016 cash in hand amounted to #1,600. Required Prepare the Receipts and Payments Account for 2016 and Balance Sheet as at the end of the year. 450 270 750Re L ren Sir laase wolo asset the usme date bola nh tha ki opening h yaa closing toh hum ‘ssume karenge ki opening h?To To To To Balance b/d (balancing figure) Subscriptions as perincome & Expenditure Account ‘Add: 2015's Received 2017's Received Less: 2016's Received in 2015 Lets: 2016's Outstanding Entrance Fees Contribution for annuat dinner Sport meet Receiptiess Balance b/d ‘Add: aid for 2015 ‘Less: Unpaid for 2016 By General Expenses ‘Add : Paid for 2017 By Audit fee (2016) ‘Secy. Honorarium 250| By Annual Dinner Expenses 1,000 ape ee Bapicharoes 8y Sports Equipments 750| 12700- (2600-300) By Balance c/d 10.560 1.500 150 Ww o> 1.800 70.560Balance sheet of Youth Cub as at December 31,2016 Subscription received inadvonce Aust Fee Outstanding Salaries Outstanding BankLoan Capital Fund Balance as per previous Balance Sheet ‘Add: Surplustor 2016 540) 270 250, 450 Freehold Ground Sport Equipment: Asperlast Balance Sheet 2000 Aditions 12,140) 15:10 Less: Depreciation Subscription Outstanding Insurance Prepaid (cash inhand gle as.110 Balance Sheet of Youth Club as at 315t December, 2015 Subscriptions receved in advance Salaries oustanding Audi fees unpaid fankLoan, ‘Capita Fund (balancing gure) 450) 400) 200) 2000] 11540) ‘Freehold Ground ‘Sports Equipment ‘Subscriptions Outstanding (Cashin hand 14590) "RSP dn fy ISG 70 OPery WA a Subbscepho ado | Upkeep of Gros L200 13, 22p +400 Cie en Posay 6eg 620 | 10,600 im Trak 1000 i cen (9320 | (nm Ols EP esi 240 2240 vO SaAaw tLeoo Sale of nef. 260 sits Reuk 600 ker Isvo Qvare do he cap 2000 butvoru fez 1300 () Captard — BO5 | 26 ms luo quo A tntevy wm Pyinbd hess oy clows Balonu(GY ILLusTRATION6 From the following Income and Expenditure Account and the Balance Sheet of club, prepare its Receipts and Payments Account and Subscription Account forthe year ended 31st March, 2016: Income & Expenditure Account for the To. Upkeep of Ground 10,000] 8y Subscriptions 17,320 To Printing 1,000| By Sale of Newspapers (Old) 260 To Salaries 11,000) By Lectures 1,500 To Depreciation on Furniture 1,000| By Entrance Fee —+ aD To Rent 600) By Misc. Income 400 By Deficit en 23,600) 3,600hy SS ow Balance Sheet as at 31st March, 2016 Subscription n Advance a (2016-17) Geen — Au ‘Add: Interest < pa Furniture 100| Ground and Building Prize Fund investment pa) |cesnintnd i \Subscription (outstanding) (2015-16) (2.000)|, 24,000] 56420 (2,820)| 53,600 1,300|__ 54,900] 79,000) 9,000 47,000 20,000 2300 700 79,000146 U 4 Sibscriptcn) outstanding iq 2014-15 was % 800 ghd for 2015-16 3700, wo Subscription, received in. in. advance in 2014-15 was €200 ar in 2014-15 was %200 and inQ015-16 for 2016 17 706, ols PY yeromd in OY hue = Cun gar. sub vend din Pre 200© sowution Receipts and Payments Account for the year ending 31st March, 2016 Receipts | Payments To Balance b/d By Upkeep of Ground (Balancing figure) (C4660) (10,000 + 600) 10,600 To Subscription 17,320 | By Printing (1,000 + 240) 1,240 To. Intereston PrizeFundinvestments| 1,000|By_ Salaries 11,000 To Lecture (fee) 1,500/By Rent 600 To Entrance Fee 2,600| By Prizes 2,000 To Sale of Newspapers (old) 260|By Balance c/d 2,300 To. Misc.Income 400] 27740 27.740 Working note: & 600 paid for upkeep of ground for 2014-15 and £240 paid for printing have been added to the amount shown as expenditure for the year to arrive at total payment under these heads.To Subscription ‘Outstanding (2014-15) To Subscription In Advance (2016-17) Subscription Account By Cash (Balancing figure) By Subscription Outstanding (2015-16) By Subscription in Advance (2014-15) 700 18,220(@ wwustrarion? The Sportwites Club gives the following Receipts and Payments Account forthe year ended March 31, 2016: Receipts and Payments Account To Balance b/d —> Can By umes ¢ 2 To Subscriptions * (28,600 |8y Rent and electricity To Miscellaneous income 700 | By Library books - BIs To. Interest on Fixed deposit * (000 |By Magazines and newspapers * 2172 a1 By Sundry expenses % ("10.278 eect ey sto |P Sportsequipments ~> 7 / 7000 cy ‘ els _|BY Balancec/d 2450 ow 36 120 36,120 _Figures of other assets and liabilities are furnished as follows: Salaries outstanding Outstanding rent & electricity Outstanding for magazines and newspapers Fixed Deposit (10%) with bank Interest accrued thereon Subscription receivable Prepaid expenses Furniture Srrseeoments Library books The closing values of furniture and sports equipments are to be determined after charging depreciation at 10% and 20% p.a. respectively inclusive ofthe additions, if any, during the year. The Club’ library books are revalued ‘at the end of every year and the value at the end of March 31, 2016 was 5,250.TLE hn 15-16 To Salas 12,000 By Sub. 28,606 © ped fey Py ae 790 GPrecd4r0e¥ C263) Gr alstracy Ie] 14 6O |G oe acy S75. 29512 To R aS j poli a oe fag & (26) By mis \nc 300 G ols ar 373 7325 To Manor 2 Zi 3 tyreredte 2000 eee Vile abe eC ci 7 (224) © hecd PY ae i SW] 2060 O ols forcy 34g 2286. |) ole he cy To Sudeep le27t * (> ped ie Py uz iE (Md n Cotes (G2) ] 1Q OFS | Agee Jo DEP (4604 1640478») 225°Bis br 15-16 Ols- fing ie oo Libvary Books suv og Add: Rovxert 1000 RE $33 lea. bep (930) 625° magent 340} 1493 Spotds ee ph 7260 Add. 2 aft sow o Der (10h) (64a 6S60 : furhe a 460) 8640 ¢ itd A o/s Bualece [o3So— op 47008 a cnger Creed] UNE Al Bonk clea Ban find Dapsr 20009 asod Liter ols soo Peped <2oo/s expense? Hak +40 RE Roy bat 226 mo ater, Capited fd Gr ae Bis fom 1-157 fur Spry cal vp Ubvog Rtn load 4 4D pith Bu Cash IB ank 4FIOD | Of wren eee dls Sywlo Teepe? CAP 4609 72~7 SOO 20000 4820 Aan ezS 4 ——— YB REDRequired From the above information you are required to prepare: (a) The Club's Balance Sheet as at March 31, 2015; (b) The Club's Income and Expenditure Account for the year ended March 31, 2016. (0) The Club's Closing Balance Sheet as at March 31, 2016.@ sownon a) Outstanding expenses: Salaries Rent & Electricity Magazines & Newspapers Capital Fund (Balancing figure) Sportswriters Club Balance Sheet as on 31st March, 2015 1,800) 47,000 Furniture Library Books Sports Equipment Fixed Deposit Cashin hand &at Bank Prepaid Expenses Subscription receivable Interest accrued 9,600 5,000 7,200 20,000 4820 47 1,263Income and Expenditure Account for the year ending 31st March, 2016 To Salaries 11,460| By Subscription 28912 To Rent & Electricity 7,329 By Interest on FD 2.000 To Magazines & Newspapers 2,286 |By ‘Misc. Income 700 To Sundry Expenses 10,075 |By Excess of expenditure To Depreciation : ‘over income 2888 Furniture 960 Sports Equipment 1640 Library Books 750| 3350 34,500) 34,500@ Balance Sheet of sports Writers Club ‘ason 31st March, 201 ‘Outstanding Expenses: Furniture Salaries v0) Cost 9,600 Rent &flecticy 7 tess: Depreciation (960)| 8640 Newspapers 340] 1483) Magazines & Sport ‘Capital Fund Equipment: ‘Opening balance 447000 Opening balance 7200 Less: Excess of ‘Addition 11000 ‘exp.overincome | (2888)| 44,112 ‘3.200 Less: Depreciation (1640)| 6560 LUbrary Books: Opening Balance 5000 ‘Addition 11000 “6000 Less: Depreciation 7s0)| 5250 Fixed Deposit 20000 Cashin hand & at bank 2450 Prepaid Expenses 620 ‘Subscription Receivable 1575 Inerest accrued 500 5595 45595,Working Notes: Paid during the year ‘Add : Outstanding on 313.2016 {ess :Prepaidon 313.2015 Less: Outstanding on 313.2015 ess: Prepaidon 313.2016 ‘expenditure for the year 0, | Depreciation (a) Furmiture @10% on £9,600 (©) Sports Equipment @ 20% on #8.200 (0) Ubrary books book value Revalued at (| Subscription Received in cash ‘did: Recetvable on 313.2016 es Recelvable on 3132015 v2000] 7220) 2.172) 10.278 wo] 973] aa = | - -|_ a7 v2.79] 8193) 2512) 10.695 io! en] ae) = -| -| -| 620 Tiaéo| —7329| 2.286) 10075 t 960 10 6000 (5230) 750 28.600 |__1s5 30175 1263, 2912The following is the Receipts and Payments Account of Lion Club for the year ended 31 March 2016 Receipts == | Payments fa ‘Opening balance: Salaries Cash 10,000 Creditors Bank 3,850| Printing and stationary Subscription received 2,02,750| Postage Entrance donation 1,00,000] Telephones and telex Interest received '58,000| Repairs and maintenance Sale of assets 8,000| Glass and table linen Miscellaneous income 9,000] Crockery and cutlery Receipts at Garden upkeep Coffee room 10,70,000| Membership fees Soft drinks 5,10,000| Insurance ‘Swimming pool £80,000) Electricity Tennis court 102,000] Closing balance: Cash Bank 71,53,600)‘The assets and liabilities as on 1.4.2015 were as follows: Fixed assets (net) ,00,000 Stock 3,80,000 Investment in 12% Government securities 5,00,000 Outstanding subscription 12,000 Prepaid insurance 1,000 Sundry creditors 1.12000 Subscription received in advance 15,000 Entrance donation received pending membership 1,00,000 Gratuity fund 150,000 ‘The following adjustments are to be made while drawing up the accounts: (9) Subscription received in advance as on 31st March, 2016 was 18,000, (i), Outstanding subscription as on 31st March, 2016 was & 7,000. (id Outstanding expenses are salaries € 8,000 and electricity 15,000. (iv) 50% of the entrance donation was to be capitalized. There was no pending membership as on 31st March, 2016. (v) The cost of assets sold net as on 1.4.2015 was & 10,000. (vi) Depreciation isto be provided at the rate of 10% on assets.* Asum of Rs. 20,000 received in October 2015 as entrance donation from an applicant was to be refunded as he has not fulfilled the requisite membership qualifications. The refund was made on 3.6.2016. * Purchases made during the year amounted Rs. 15,00,000. * The value of closing stock was Rs. 2,10,000. * 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 March 2016 and the Balance Sheet as on 31 March 2016 along with necessary workings.Income and Expenditure Account of Lion Club for the year ended 31st March, 2016 Expenditure To Salaries To Printing and stationary To Postage To Telephone and telex To Repairs and maintenance To Glassand table linen To Crockery and cutlery To Garden upkeep To Membership fees To Insurance To Electricity charges To Loss on sale of assets To Depreciation z 1,28,000 70,000) 40,000) 52,000 48,000) 12,000 14,000 8,000 4,000 6,000 43,000) 2,000 49,000, 476,000, Income By Subscription By Entrance donation By Interest By Miscellaneous income By Profit from operations By Excess of expenditure over income (deficit transferred to capital fund 1,94,750 90,000 60,000 9,000 92,000 30,250Balance Sheet of Lion Club as on 31st March, 2016 Liabilities 2 | Acsots z Capital fund, 110,89,600} Fixed assets 441,000 Gratuity fund 150,000} stock 2,10,000 ‘Sundry creditors {92,000 | Investments 5,00,000 ‘Subscription received in advance 18,000| Subscription outstanding 7,000 Entrance donation refundable 20,000 interest accrued 2.000 Outstanding expenses 23,000] Bank 2.24,600 ‘Cash 8,000 13,92,600) 73,92,600 1 ‘Opening Balance Sheet Balance Sheet of Lion Club as on 1st April, 2015 Liabilities | Assets z Sundry creditors Fixed assets 5,00,000 ‘Subscription received in advance Stock 380,000 Entrance donation received in advance Investments. 5,00,000 Gratuity fund Subscription outstanding 12,000 Capital fund (balance figure) 10,29.850 | Prepaid expenses Cash Bank2. Subscription Subscription received during the year ‘Add: Outstanding subscription on 31.3.2016 ‘Add: Recelved in advance as on 1.4.2015 Less: Outstanding subscription as on 1.4.2015 Less: Received in advance as on 31.3.2016 3. Entrance donation Entrance donation received during the year ‘Add: Received in advance as on 1.4.2015 Less: Entrance donation in respect of ineligible member Less: 50% capitalized Taken to income and expenditure accountLoss on sale of asset e Cost of asset sold 10,000 Less: Sale proceeds (8,000) Loss on sale of asset 2,000 5. Depreciation « Fixed asset as per trial balance 5,00,000, Less: Cost of asset sold 10,000) 490,000, Depreciation on & 4,90,000 @ 10% 49,000 6. Salaries « Salary paid during the year 1,20,000 ‘Add: Outstanding as on 31.3.2016 8,000 11,28,000 7. Electricity charges z Electricity charges paid during the year 28,000 ‘Add: Outstanding as on 31.3.2016 15,000 43,0008 Interest Interest on 123% Government securities investment (®5,00,000 @ 12% pa) Less Interest recelved during the year Interest acerved Interest credited to Income and Expenditure Account 9. Profit from operations Cost of goods sold: ‘Opening stock ‘Add: Purchases Less: Closing stock Cost of goods sold (A) Receipts from operations: Receipt from coffee room Receipt from soft drinks Receipts from swimming pool Receipts from tennis court Total receipts (6) Profit from operations (8-A) 60,000 (58,000) |_ 2008 60,000 3,80,000 15,00,000 18,80,000 (2.10.000) 16,70,000 10,70,000 5,10,000 80,000 1.02000 17.62.00 9200010. Insurance z Insurance paid during the year 5,000 ‘Add: repaid insurance as on 1.42015 1,000 6,000 11. Sundry creditors t Opening balance as on 1.42015 112,000 ‘Add: Purchases made during the year 150,000 16,12,000 Less: Payments made during the year (15,20,000) Closing balance as on 313.2016 92,000 12. Outstanding expenses z Outstanding salaries 8,000 Outstanding electricity charges 15,000 Outstanding expenses 23,000‘Smith Library Society showed the following position on 31% March, 2017, Balance Sheet as on 31% March, 2017 Liabilities & | Assets z Capital fund 7,93,000 | Electrical fittings 1,50,000 Expenses payable 7,000 | Furniture 50,000 Books: 4,00,000 Investment in securities 1,50,000 Cash at bank 25,000 Cash in hand 25,000 8,00,000 8,00,000The receipts and payment account for the year ended on 31% March, 2018 is given below: z z To. Balance bid By Electric charges 7,200 Cash at bank 25,000 By Postage and stationary | 5,000 Cash in hand 25,000 50,000 By Telephone charges 5,000 To Entrance fee 30,000 | By Books purchased 60,000 To Membership subscription | 2,00,000|By Outstanding expenses 7,000 paid To Sale proceeds of old| 1,500/By Rent 88,000 papers To Hire of lecture hall 20,000 | By Investment in securities 40,000 To. Interest on securities, 8,000|By Salaries 66,000 By Balance cid Cash at bank 20,000 Cash in hand 11,300 3,09,500 3,09.500You are required to prepare income and expenditure account for the year ended 31% March, 2018 and a balance sheet as at 315, March, 2018 after making the following adjustments: Membership subscription included & 10,000 received in advance. Provide for outstanding rent % 4,000 and salaries % 3,000. Books to be depreciated @ 10% including additions. Electrical fittings and furniture are also to be depreciated at the same rate. 75% of the entrance fees is to be capitalized. Interest on securities is to be calculated @ 5% p.a. including purchases made on 41.10.2017 for % 40,000.Solution to Problem No: 1‘Smith Library Society Income and Expenditure Account for the year ended 31% March, 2018 be @ [Espendtre income 4 ro Electric charges 7,200|8y —Enirance fe (25% of 7.500 To. Pesage an staorny S000] % 30000) To. Telephone charges 5.000|8y Membership 2.00000 To Rent 88,000) ‘subscription 10.000} 1.90,000) ‘Ada: Outstanding | 4000) 02, 000|Le8s Received in advance ro salaries 66000 By Sale proceeds of of 1.500 ‘Add. Outstanding 3.000] 69,000] papers fro Deprecion WN) By Hire of lecture hall 20,000 Electrical tings | 15000 ly Interest on scutes | 8.000 Fumie 5 00 (wn2) Books 45000} 66000] Add: Receivable 00} 0.500 ley Defct. excess of 16,700 expenditve over zas200 24820Balance Sheet of Smith Library Society as on 31% March, 2018 Liabilities = | Asset = = Capital fund 7,93,000 Electrical fittings | 1,50,000 Add: Entrance | _22,500 Less: Depreciation | (15,000) | 1,35,000 8,15,500 Furniture 50,000 Less: Excess of Less: Depreciation | (5,000) | 45,000 expenditure over Books 4,60,000 income 16,700) | 7,98,800 Outstanding Less Depreciation | (46,000) | 4,14,000 expenses: 4,000 Investment: Rent Salaries 3,000 | 7,000 | Securities 1,90,000 Membership Accrued interest 500 | 1,90,500 subseristion in Cash at bank 20.000 advance 10,000 Cash in hand 11,300 8.15800 8.15800Working Notes: A. Depreciation v Electrical fittings 10% of % 1,50,000 15,000 Furniture 10% of % 50,000 5,000 Books 10% of % 4,60,000 46,000 2. Interest on Securities Interest @ 5% p.a. on % 1,50,000 for full year 7,500 Interest @ 5% p.a. on % 40,000 for half year 1,000 Less: Received Receivable 8,500 (8,000) 500The Receipts and Payments account of Trustwell Club prepared on 31% March, 2018 is, as follows’ Receipts and Payments Account Receipt @] Avount Payment ‘Anmount z z To Balance b/d 450 | By Expenses (including To Annual income tom Payment for sports ‘Subscription 4,590 ‘material 2,700) 6,300 ‘Add: Outstanding of By Loss on Salo of Furniure last year received (cost price © 450) 180 this year —180 By Balance cid 90,450 4770 Less: Prepaid of last year 20] 4,680 To Oer feos 1,800 To Donation for Buiding 20,000 96,990 96,930Additional information: ‘Trustwell club had balances as on 1.4.2017 : - Fumiture % 1,800; investment at 5% % 27,000; Sports material € 6 660; Balance as on 31.3.2018 : Subscription Receivable % 270; ‘Subscription received in advance % 90; Stock of sports material = 1,800. Do you agree with above Receipts and Payments account? If not, prepare correct Receipts and Payments account and Income and Expenditure account for the year ended 31+ March, 2018 and Balance Sheet on that date.Solution to Problem No: 2Corrected Receipts and Payments Account of Trustwell Club forthe year ended 31st March, 2018 Receipts @] Amount | Payments “Amount 7 z To | Balance bia 450 | By | Expenses To | Subscription @ 6300 -| 3,600 ‘Annual Income 4590 By | €2,700) 2700 Sports Material Less: Receivable as on By | Balance cid 90,720 3132018 270 (Cash in Hand ‘Add: Advence received and at Bank) for the year 2018-2019 90 ‘Add: Receivable 2s on 313.2017 180 Less: Advance received as on 3132017 _90] 4500 To | Oher Fees 1.800 To | Donation for Building 90,000 To | Sele of Fumiture 270 oe 97,020 97,020Income and Expenditure Account of Trustwell club for the year ended 31st March, 2018 Expenditure Amount | income ‘Amount z z To | Sundry Expenses 3,600 | By | Subscription 4,590 To | Sports Material By | Other fees 1,800 Balance as on | 6,660 By | Interest on 1,350 142017 investment Add: Purchases 2700 (6% on % 27,000) Less: Balance as on By | Deficit: Excess of 313.2018 1,800} 7,560 Expenditure over} 3,600 To | Loss on sale of Income Furiture 480 14,340 11,340Balance Sheet of Trustwell club as on 31st March, 2018 Liabilities “Amount Assets ‘Amount @ @ Capital Fund 36,000 Fumiture 1,800 Less: Excess of Less: Sold 450| 1,350 Expenditure 3,600} 32,400 | 5% Investment 27,000 over Income Building Fund 90,000 | Interest Accrued on Investment 1,350 Subscription Received 90 | Sports Material 1,800 in Advance Subscription 270 Receivable Cash in Hand and at Bank 90,720 1,22,490 1,22.490Working Note: Balance Sheet of Trustwell Club as on 1st April, 2017 Liabilities Amount | Assets Amount ‘Subscription Fumiture 1,800 Received in Advance 90 | Investment 27,000 Capital Fund 36,000 | Sports Material 6,660 (Balancing Figure) Subscription Receivable 180 ____| Cash in Hand and at Bank a) 36,090 36,090The following information of M/s. TT Club are related for the year ended 31" March, 2018: (a) Balances ‘As on 01-04-2017 | As on 31-3-2018 ® ® Stock of Sports Material 75,000 1,12,500 ‘Amount due for Sports Material 67,500 97,500 Subscription due 11,250 16,500 Subscription received in advance 9,000 5,250 (2). Subscription received during the year ® 375,000 (3) Payments for Sports Material during the year % 2,25,000 You are required to: (A) Calculate the amount of Subscription and Sports Material that will appear in Income & Expenditure Account for the year ended 31.03.2018 and (8) Also show how these items would appear in the Balance Sheet as on 31.03.2018.Solution to Problem No: 3Subscription for the year ended 31.3.2018 Account ? Subscription received during the year 3,75,000 Less: Subscription receivable on 1.4.2017 11,250 Less: Subscription received in advance on 31.3.2018 _5,250 | (16,500) 3,58,500 ‘Add: Subscription receivable on 31.3.2018 16,500 ‘Add: Subscription received in advance on 1.4.2017 9,000 | _25,500 Amount of Subscription appearing in Income & Expenditure 3,84,000Sports material consumed during the year end 31.3.2018 & Payment for Sports material 2,25,000 Less: Amounts due for sports material on 1.4.2017 67,500) 1,57,500 Add: Amounts due for sports material on 31.3.2018 97,500 Purchase of sports material 2.58,000 Sports material consumed: Stock of sports material on 1.4.2017 75,000 Add: Purchase of sports material during the year 2,58,000 3,30,000 Less: Stock of sports material on 31.3.2018 (4.12,500 Amount of Sports Material appearing in Income & Expenditure Account 2,17,500Balance Sheet of M/s TT Club For the year ended 31* March, 2048 (An extract) Liabilities @|Assets z Unearned Subscription 5,250 | Subscription receivable 16,500 Amount due for sports material | 97,500] Stock of sports material 1,12,500From the following data, prepare an income and Expenditure Account for the year ended 31st December 2019, and Balance Sheet as at that date of the Jeevan Hospital Receipts and Payments Account for the year ended 31 December, 2019 RECEDTS = PAYMENTS: = Te Balance bid By Salane: Cash 200 (€ 7,200 for 2018) 91,200 Bank 5200] 6,000] By Hospital Equipment 47.000 To. Subscriptions: By Furniture purchased 6.000 For 2018 6.100 | By Additions to Bulking 0,000 For 2019 24,500 | By Printing ‘and ‘2.400 For 2020 21400 Statonery To Government Grant: By Diet expenses 15.600 For buicing 00,000 | By Rent and rates For maintenance 20.000 (€ 300 tor 2020) 2.000 To Donations (not to be 8,000 | By office expenses 2,000 capitalized) By Investments 20,000 To Net collections from By Balances: Bank e800] 9.200 88.200Additional information: Value of building under construction as on 31.12.2019 Value of hospital equipment on 31.12.2019 Building Fund as on 1.1. 2019 Subscriptions in arrears as on 31.12.2018 Investments in 8% Govt. securities were made on 1st July, 2019. 1,40,000 51,000 80,000 6,500Solution to Problem No: 4Jeevan Hospital Income & Expenditure Account for the year ended 31 December, 2019 Expenditure (®) | Income ® To Salaries 24,000 | By Subscriptions 24,500 To Diet expenses 15,600 | By Govt Grants (Maintenance) | 20,000 To Rent & Rates 1,700 | By Fees, Sundry Patients 4,800 To Printing & Stationery 2,400 | By Donations 8,000 To. Electricity & Water-charges | 2,400 | By Benefit shows (net | 6,000 collections) To Office expenses 2,000 | By Interest on Investments 800 To Excess of Income over expenditure transferred to Capital Fund 46,000 64,100 64.100at 31st Dec., 2019 Liabilities [Assets z z| Capital Fund Building Opening balance | 49,300 Opening balance | 90,000) Excess of] Addition 50,000] 1,40,000 Income Over Expenditure | 16,000] 66,300 | Hospital Equipment Building Fund Opening balance pening balance 80,000 Addition 47,000} 1,000 |Add : Govt. Grant 0,000] 1,80,000| Furniture 6,000 ‘Subscriptions Investments. received in advance 2,400 | 8% Govt. Securities 20,000 Subscriptions receivable 1,400 Accrued interest 00 Prepaid expenses (Rent) 300 ‘Cash at Bank 6,800 ‘Cash in hand 1,400 2.27700 221.700|Working Notes: (1) Balance sheet as at 3st Dee, 2019 abies | Assets z Capital Fund ‘uiing 0,00 (Calon Figure) 49,300 | Equgmont w000 Buing Fund 80,00 | Subscrpton Recenable | 6.500 Credo fr Expenses (Cash at Bark 5200 Salaries payable L200 | Cashin nant —0 s.sas00 1.38500 (@)_ Value of Building z Balance on Sts Dee. 2019 140000 Pid dur the year s.000 Balance on St! Dee. 2018, 0.000 (8). Value of Equipment Balance on St Doc. 2010 51000 Paid dug he year 1.000) Balance on 3! Dec. 2018, 000 (4) Subscription due for 2018, Recenable on StstDec. 2018 6500 Recened in 2019 5.100 ‘Sul Receivable for 2018 1400From the following information supplied by M.B.S. Club, prepare Receipts and Payments account and Income and Expenditure Account for the year ended 31% March 2019. 01.04.2018 31.03.2019 ci z Outstanding subscription 1,40,000 2,00,000 Advance subscription 25,000 30,000 Outstanding salaries 15,000 18,000 Cash in Hand and at Bank 1,10,000 ? 10% Investment 1,40,000 70,000 Furniture 28,000 14,000 Machinery 10,000 20,000 Sports goods 15,000. 25,000‘Subscription for the year amount to %3,00,000/. Salaries paid 7 60,000. Face value of the Investment was % 1,75,000, 50% of the Investment was sold at 80% of Face Value. Interest on investments was received 7 14,000. Fumiture was sold for 7 8000 at the beginning of the year. Machinery and Sports Goods purchased and put to use at the last date of the year. Charge depreciation @ 15% p.a. on Machinery and Sports goods and @10% p.a. on Fumiture Following Expenses were made during the year: Sports Expenses: 750,000 Rent: 24,000 out of which % 2,000 outstanding Misc. Expenses: 75,000 (10 + 10= 20 Marks)Solution to Problem No:5Receipts and Payments Account for the year ended 31-03-2019 Receipts To balance bid Cash and bank To Subscription received (WIN.1) To Sale of investnents (WN 2) To Interest received on investment To Sale of furniture zg 4,10,000 2,45,000 70,000 14,000 8,000 4,47,000 Payments By Salaries By Purchase of sports goods © (25,000-15,000) By Purchase of machinery 2 (20,000-10,000) By Sports expenses By Rent paid (24,000 -2,000) By Miscelaneous expenses By Balance od Cash and bank 60,000 10,000 10,000 50,000 22,000 5,000 290,000 447,000Income and Expenditure account or the year ended 31-03-2019 Expenditure a @ | ncome z z To Salores 0,000 By Sibson 3.00,000 ‘Adi: Ousening 2019 | 18.000 By Inerest on Irvestent 78.000 Received — | 14000 Less Oustordng fr 2018 | (15.00 ] 63.000 | Acrued | gg00| 17,500 (WN5) To Spor expenses +9000 ToRent 24000 ToMscelancous exp 5,000 To Loss on sake of 6,000 fume (WN3) ToDepreciaton (WN) Fumie 1400 Machinery 1.500 ‘Spor’ goods 220] 5180 ToSuphs 1164350Working Notes: 4 Calculation of Subscription received during the year 2018-19 z ‘Subscription due for 2018-19 3,00,000 ‘Add: Outstanding of 2018 1,40,000 Less: Outstanding of 2019 (2,00,000) Add: Subscription of 2019 received in advance 30,000 Less: Subscription of 2018 received in advance (25,000) 2,45,000 Calculation of Sale price and profit on sale of investment Face value of investment sold: % 1,75,000 x 50% = % 87,500 Sales price: % 87,500 x 80% = % 70,000 Cost price of investment sold: & 1,40,000 x 50% = % 70,000 Profitloss on sale of investment. % 70,000 - % 70,000 = NIL3. Losson sale of furniture £ Value of furniture as on 01-04-2018 28,000 Velue of fumiture as on 31-03-2019 14,000 Value of furniture sold atthe beginning of the year 14,000 Less: Sales price of fumiture (8,000) Loss on sale of furniture 6,000 4. Depreciation Fumiture - %14,000* 10% = 1.400 Machinery %10,000 15% = 1,800 ‘Sports goods 215,000 15% = 2,250 5, Interest accrued on investment z Face value of inestmenton 07-04-2018 175,000 Interest @ 10% 17,500 Less: Interest received during the year 14,000) Interest accrued during the ye 3,500(a) You are provided with the following: Balance Sheet as on 31 March, 2017 Liabilities (@) | Assets (0 Capital Fund 1,06,200 | Building 1,50,000 Subscription received in Advance | 6,000 | Outstanding Subscription 3,800 Outstanding Expenses 14,000 | Outstanding Locker Rent 2,400 Loan 40,000 | Cash in hand 20,000 Sundly Creditors 10,000 pots Total 1,76,200 1,76,200The Receipts and Payment Account for the year ended on 31* March, 2018 Receipts @ Payment @ To Balance b/d By Expenses: Cash in Hand 20,000 For 2017 12,000 To Subscriptions. For 2018 20,000 | 32,000 For 2017 2000 By Land 40,000 For 2018 21,000 By Interest 4,000 For 2019 1,000 24,000 | By Miscellaneous Expenses | 4,700 To Entrance Fees 38,000 | By Balance e/d To Locker Rent 7,000 | Cash in Hand 18,300 To Sele proceeds of old| 1,000 newspapers To Miscellaneous Income 9,000 pie 99,000 99, You are required to prepare Income and Expenditure account for the year ended 31° March, 2018 and a Balance Sheet as at 31% March, 2018 (Workings should form part of your answer).Solution to Problem No: 6(a) Income and Expenditure Account for the year ended 31% March, 2018 Expenditure z Income z To Expenses 20,000 | By Subscriptions (21,000 + 6,000) | 27,000 To Interest 4,000 | By Locker rent (7,000 - 2,400) 4,600 ToMise. Expenses | 4 799| By Sale proceeds of old| 4 99 eae eee 12.800 Nise. income g.g00 41,600 41,600Balance Sheet as at 31*t March, 2018 Liabilities ‘Amount Assets ‘Amount @®) «®) Capital fund Land and Building | 1,90,000 Bal. as on 1.4.2017 1,06,200 ‘Subscription receivable (2017) 1,800 Add: Entrance fee 38,000 (3,800 - 2,000) Add: Surplus 42.900} 1,57,100 Loan 40,000 | Cash in hand 18,300 Creditors 10,000 Outstanding expenses 2,000 (2017) (14,000-12,000) Subscription received in advance 4,000 Peet 2,140,100 2,10,100 Note: Entrance fees have been capitalized in the above solution.