Chapter 1 Accounting for Not for Profit Organisation Solutions

Question - 21 : - The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017:

Receipts

Amount

Rs

Payments

Amount

Rs

Balance from last year

2,270

Rent

6,600

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 entertainment

7,250

Printing and Stationery

1,050

Sale of old Books (books value Rs 1,000)

750

Legal fee

1,870

Interest

350

Books

6,500

Furniture purchased

8,600

Expenses on nukar drama

1,300

Cash in hand

8,040

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 include Rs 500 for the year 2018.
(b) In the beginning of the year the Sangh 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%.

Answer - 21 : -

Books of Nari Kalyan Samittee Income and Expenditure Account as on Dec. 31, 2017
Dr.					Cr.
Expenditure		Amount Rs	Income		Amount Rs
Rent		6,600	Subscription	32,500
Electric Charges		3,200	Add: Outstanding for 2017	750
Lecturer’s fee		730	33,250
Office Expenses		1,480	Less: Advance for 2018	(500)	32,750
Printing and Stationery		1,050	Donation		2,500
Legal Fee		1,870	Profit from Entertainment		7,250
Depreciation on:			Interest		350
Books	750
Furniture	580
Building	1,000	2,330
Expenses on Nukar Drama		1,300
Loss on Sale of Books		250
Surplus		24,040

		42,850			42,850

Balance Sheet as on Dec. 31, 2016
Liabilities	Amount Rs	Assets	Amount Rs
Capital Fund as Dec. 31, 2016	27,270	Building	20,000
(Balancing Figure)		Furniture	3,000
		Books	2,000
		Cash and Bank	2,270

	27,270		27,270

Balance Sheet as on Dec. 31, 2017
Liabilities		Amount Rs	Assets		Amount Rs
Capital Fund	27,270		Building	20,000
Add: Life Membership Fees	3,250		Less: 5% Depreciation	(1,000)	19,000
Add: Surplus	24,040	54,560
			Furniture	3,000
Advance Subscription for 2018		500	Add: Purchases	8,600
				11,600
			Less: 5% Depreciation	580	11,020

			Books	2,000
			Add: Purchases	6,500
			8,500
			Less: Sales	1,000
				7,500
			Less: 5% Depreciation	750	6,750
			Cash in Hand		8,040
			Cash at Bank		9,500
			Subscription Outstanding		750

		55,060			55,060

Question - 22 : - Following is the Receipt and Payment Account of Indian Sports Club, prepared Income and Expenditure Account, Balance Sheet as on December 31, 2017:

Receipt and Payment Account

for the year ending December 31, 2017

Receipts

Amount

Rs

Payments

Amount

Rs

Balance b/d

7,890

Salary

11,000

Subscriptions

52,000

Electric charges

5,500

Life member ship fee

2,200

Billiard Table

17,500

Entrance fee

3,200

Office expenses

4,100

Tournament fund

26,000

Printing and Stationery

2,300

Locker Rent

1,250

Tournament expenses

18,500

Sale of old sports goods (Costing Rs 2,200)

2,500

Repair of ground

2,000

Sale of Old Newspaper

750

Furniture purchased

7,700

Legacy

37,500

Sports equipments

12,000

Cash in Hand

12,690

Cash at Bank

10,000

Fixed Deposit (on 1.10.17 for 10% p.a)

30,000

1,33,290

1,33,290

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).

Answer - 22 : -

Indian Sports Club Income and Expenditure Account as on Dec. 31, 2017
Dr.					Cr.
Expenditure		Amount Rs	Income		Amount Rs
Salary	11,000		Subscriptions	52,000
Add: Outstanding for 2017	1,000	12,000	Add: Outstanding for 2017	3,200
Electric Charges		5,500		55,200
Office Expenses		4,100	Less: Outstanding for 2016	(1,200)	54,000
Printing and Stationery		2,300
Repair of Ground		2,000	Locker Rent	1,250
Depreciation on:			Add: Outstanding for 2017	250	1,500
Furniture	1,970
Building	3,600		Entrance Fees		3,200
Sports Equipments	2,730	8,300	Profit on Sale of Sports
Surplus		26,300	Equipments (Rs 2,500 – Rs 2,200)		300
			Sale of Old Newspapers		750
			Accrued Interest		750
		60,500			60,500

Balance Sheet as on January 01, 2016
Liabilities		Amount Rs	Assets		Amount Rs
Capital Fund (Balancing Figure)		74,590	Subscription Outstanding		1,200
			Building		36,000
			Furniture		12,000
			Sports Equipments		17,500
			Cash and Bank		7,890
		74,590			74,590


Balance Sheet as on Dec. 31, 2017
Liabilities		Amount Rs	Assets		Amount Rs
Salary Outstanding		1,000	Subscripting Outstanding		3,200
Tournament Fund	26,000		Locker Rent Outstanding		250
Less: Tournament Expenses	18,500	7,500	Building	36,000
			Less: 10% Depreciation	(3,600)	32,400
Capital fund	74,590
Add: Life Membership Fee	2,200		Furniture	12,000
Add: Legacy	37,500		Add: Purchases	7,700
Add: Surplus	26,300	1,40,590		19,700
			Less: 10% Depreciation	(1,970)	17,730

			Sports Equipments	17,500
			Add: Purchases	12,000
				29,500
			Less: Sales	(2,200)
				27,300
			Less: 10% Depreciation	(2,730)	24,570

			Billiard Table		17,500
			Cash in hand		12,690
			Cash at Bank		10,000
			Fixed Deposit	30,000
			Add: Accrued Interest	750	30,750

		1,49,090			1,49,090

Question - 23 : - 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.

Receipt and Payment Account

for the year ending March 31, 2017

Receipts

Amount

Rs

Payments

Amount

Rs

Cash in hand as on 1.4.16

6,800

Salaries

24,000

Subscription

60,200

Traveling Expenses

6,000

Donation

3,000

Stationery

2,300

Sale of furniture (Book value Rs 6000)

4,000

Rent

16,000

Entrance fee

800

Repair

700

Life membership fee

7,000

Books purchased

6,000

Interest on investment (@ 5% for full year)

5,000

Building purchased

30,000

Cash in hand as 31.3.2017

1,800

86,800

86,800

Additional Information:

As on

1.04.2016

As on

31.03.2017

(i)

Subscription received in advance

1,000

3,200

(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

Answer - 23 : -

Books of Jan Kalyan Club Income and Expenditure Account as on 31 March 2017
Dr.						Cr.
Expenditure			Amount Rs	Income		Amount Rs
Loss on Sale of Furniture (Rs 6,000 – Rs 4,000)			2,000	Subscription	60,200
Salaries			24,000	Less: Outstanding for 2016	(2,000)
Traveling Expenses			6,000		58,200
Stationery		2,300		Add: Outstanding for 2017	3,700
Add: Opening Stock		1,200			61,900
		3,500		Add: Advance in 2016	1,000
Less: Closing Stock		(800)	2,700		62,900
				Less: Advance in 2017	(3,200)	59,700
Repairs			700
Rent		16,000		Donation		3,000
Less: Outstanding for 2016		(1,000)		Entrance Fees		800
		15,000		Interest on Investments		5,000
Add: Outstanding for 2017		2,000	17,000
Depreciation on Books			3,000
Depreciation on Furniture			2,000
Surplus			11,100

			68,500			68,500

	Balance Sheet as on April 01, 2016
	Liabilities		Amount Rs	Assets		Amount Rs
	Advance Subscription		1,000	Cash in Hand		6,800
	Outstanding Rent		1,000	Investment {5,000 × (100/5)}		1,00,000
	Capital Fund (Balancing figure)		1,37,500	Subscription Outstanding		2,000
				Stock of Stationery		1,200
				Books		13,500
				Furniture		16,000
			1,39,500			1,39,500

Balance Sheet as on March 31, 2017
Liabilities		Amount Rs	Assets		Amount Rs
Advance Subscription		3,200	Subscription Outstanding		3,700
Outstanding Rent		2,000	Stock of Stationery		800
Capital Fund	1,37,500		Investments		1,00,000
Add: Life Membership Fees	7,000
Add: Surplus	11,100	1,55,600	Books	13,500
			Add: Purchases	6,000
				19,500
			Less: Depreciation	(3,000)	16,500

			Building		30,000
			Cash in Hand		1,800
			Furniture	16,000
			Less: Sales	6,000
				10,000
			Less: Depreciation	(2,000)	8,000

		1,60,800			1,60,800

Question - 24 : - Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017

Receipt and Payment Account

for the year ending March 31, 2017

Receipts

Amount

Rs

Payments

Amount

Rs

Opening Cash in hand

2,600

Rent

18,000

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 entertainment

3,000

Postage

1,000

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 following Information:
Subscription outstanding on March 31, 2016 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 01, 2016 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500
On March 31, 2017. The club took a loan of Rs 20,000 (@ 10% p.a.) in 2017.

Answer - 24 : -

Books of Shankar Sports Club Income and Expenditure Account as on 31 Dec. 2017
Dr.					Cr.
Expenditure		Amount Rs	Income		Amount Rs
Rent	18,000		Entrance Fees		3,200
Add: Outstanding for 2017	1,500		Locker Rent		1,200
	19,500		Profit from Entertainment		3,000
Less: Outstanding for 2016	(1,500)	18,000
			Subscription	40,000
Wages		7,000	Less: Outstanding for 2016	(1,200)
Depreciation on Furniture		2,500		38,800
Interest		2,000	Add: Outstanding for 2017	2,300	41,100
Postage	1,000		Deficit (Balancing Figure)		6,100
Add: Opening Stock	300
	1,300
Less: Closing Stock	(200)	1,100
Salaries		24,000

		54,600			54,600

Balance Sheet as on December 31, 2016
Liabilities	Amount Rs	Assets	Amount Rs
Rent Outstanding	1,500	Cash in Hand	2,600
10% Loan	20,000	Subscription Outstanding	1,200
		Furniture	15,000
		Stock of Postage Stamps	300
		Capital fund Deficit (Balancing figure)	2,400

	21,500		21,500

Balance Sheet as on December 31, 2017
Expenditure		Amount Rs	Income		Amount Rs
Rent Outstanding		1,500	Subscription Outstanding		2,300
10% Loan		20,000	Stock of Postage Stamps		200
Donation for Building		23,000	Billiard Table		14,000
Capital Fund	(2,400)		Furniture	15,000
Add: Life Membership Fee	7,000		Add: Purchases	10,000
Less: Deficit	(6,100)			25,000
			Less: Depreciation	(2,500)	22,500
			Cash in Hand		4,000
			* Capital Fund (Deficit)		1500
		44,500			44,500

Question - 25 : - 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:

Receipt and Payment Account

for the year ending March 31, 2016

Receipts

Amount

(Rs)

Payments

Amount

(Rs)

Opening cash balance

12,000

Furniture

4,000

Subscription

Telephone expenses

800

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 balance

2,500

52,000

52,000

Balance Sheet

for the year ending March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Advance locker rent

200

Cash in hand

12,000

Subscription received in Advance

1,000

Outstanding subscription

3,000

Outstanding salary

2,000

Building

35,000

Loan

10,000

Capital fund

36,800

50,000

50,000

Answer - 25 : -

Books of Culture Club Income and Expenditure Account as on March 31, 2016
Dr.								Cr.
Expenditure		Amount Rs		Income			Amount Rs
Telephone Expenses		800		Subscription	22,000
Salary		4,000		Add: Advance Received in 2015	1,000		23,000
Newspapers		700
Sundry Expenses		1,000		Entrance Fees			2,800
				Locker Rent		1,000
Surplus (Balancing figure)		31,500		Add: Advance Received in 2015		200	1,200
				Government Grants			11,000

		38,000					38,000


Balance Sheet as on March 31, 2016
Liabilities		Amount Rs	Assets				Amount Rs
Capital Fund	36,800		Subscription Still Outstanding for 2015				1,000
Add: Life Membership Fees	1,200		(Rs 3,000 – Rs 2,000)
Add: Surplus	31,500	69,500	Furniture				4,000
			Defence Bonds				18,000
Salary Still Outstanding for 2015		1,000	Land				20,000
Loan		10,000	Building				35,000
			Cash in Hand				2,500
		80,500					80,500

Question - 26 : - 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

Receipts

Amount

Rs

Payments

Amount

Rs

Balance b/d

15,000

Furniture

18,000

Sale of Old furniture (costing Rs 6,000)

4,000

Library books

10,000

Subscriptions:

Salaries

72,000

2015–16

18,000

General expenses

18,000

2016–17

60,000

Electric charges

12,000

2017–18

12,000

90,000

Newspapers

33,800

Sale of old newspapers

10,800

Postage

3,000

Profit from entertainment

44,000

Stationery

40,000

Rent

84,000

Audit fee

8,000

Balance c/d

33,000

2,47,800

2,47,800

Balance Sheet

as on March 31, 2016

Liabilities

Amount

Rs

Assets

Amount

Rs

Outstanding Salary

6,000

Cash

15,000

Capital Fund

6,94,000

Outstanding subscription

18,000

Library Books

30,000

Furniture

37,000

Land and Building

6,00,000

7,00,000

7,00,000

Additional Information:
1. The Club had 500 members each paying an annual subscription of Rs 150.
2. On 31.3.2016 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.

Answer - 26 : -

Books of Unity Club Income and Expenditure Account as on March 31, 2017
Dr.							Cr.
Expenditure			Amount Rs	Income		Amount Rs
Loss on Sale of Old Furniture (4,000 – 6,000)			2,000	Subscription
				500 members at Rs 150 each		75,000
Salaries		72,000		Sale of Old Newspapers		10,800
Add: Outstanding for 2015–16		1,200		Profit from Entertainment		44,000
		73,200		Rent		84,000
Less: Outstanding for 2016–17		(6,000)	67,200
General Expenses			18,000	Deficit (Balancing figure)		200
Electric Charges			12,000
Newspapers			33,800
Postage			3,000
Stationery			40,000
Audit Fees			8,000
Depreciation on Land and Building			30,000
			2,14,000			2,14,000


Balance Sheet as on 31 March 2017
Liabilities			Amount Rs	Assets		Amount Rs
Advance Subscription (for 2017–18)			12,000	Subscription Outstanding		15,000
Salaries Outstanding			1,200	Furniture	37,000
Capital Fund	6,94,000			Add: Purchases	18,000
Less: Deficit	(200)		6,93,800		55,000
				Less: Sales	(6,000)	49,000

				Library Books	30,000
				Add: Purchases	10,000	40,000

				Land and Building	6,00,000
				Less: 5% Depreciation	(30,000)	5,70,000

				Cash and Bank		33,000
			7,07,000			7,07,000

Question - 27 : - 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.

Details

Amount

Rs

Sports Fund as on April 1, 2016

80,000

Sports Fund Investments

80,000

Interest on 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 Investments

20,000

Answer - 27 : -

Income and Expenditure Account as on March 31, 2016
Dr.									Cr.
Expenditure			Amount Rs		Income		Amount Rs
					Interest on General Fund Investments		20,000




	Balance Sheet as on March 31, 2016
	Liabilities			Amount Rs		Assets		Amount Rs
	Sports Fund	80,000				Sports Fund Investments		80,000
	Add: Interest on Sports Fund					General Fund Investments		2,00,000
	Investments	8,000
	Add: Donation for Sports Fund	30,000
		1,18,000
	Less: Sports Prizes Awarded	(16,000)
	Less: Expenses on Sports Events	(7,000)		95,000

	General Fund			2,00,000

Question - 28 : -
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 on March 31, 2016 were Rs 6,500,
2. Subscription received in advance as on March 31, 2016 were Rs 4,100,
3. Subscription Outstanding as on March 31, 2017 were Rs 5,400,
4. Subscription received in advance as on 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.

Answer - 28 : -

Books of Maitrey Sports Club Income and Expenditure Account as on March 31, 2017
Dr.						Cr.
Expenditure	Amount Rs		Income		Amount Rs
			Subscription	68,500
			Less: O/s on Mar. 31, 2016	(6,500)
			62,000
			Add: Advance on Mar. 31, 2016	4,100
			Add: O/s on Mar. 31, 2017	5,400
			71,500
			Less: Advance on Mar. 31, 2017	(2,500)	69,000



Balance Sheet as on March 31, 2016
Liabilities	Amount Rs	Assets			Amount Rs
Subscription in Advance	4,100	Subscription Outstanding			6,500

Balance Sheet as on March 31, 2017
Liabilities	Amount Rs	Assets	Amount Rs
Subscription in Advance	2,500	Subscription Outstanding	5,400

Question - 29 : - Following is the Receipt and Payment account of Rohatgi Trust :

Receipt and Payment Account

for the year ending December 31, 2017

Receipts

Amount

Rs

Payments

Amount

Rs

Cash in hand

14,000

Rent

6,000

Cash at Bank

60,000

Salary

12,000

Subscriptions:

2016

2017

2018

5,000

83,000

3,000

91,000

Postage

Electricity charges

Purchase of furniture

Books

300

6,000

20,000

3,000

Sale of Investment

90,000

Defence Bonds

1,50,000

Interest on investment

2,000

Help to needy students

22,000

Sale of furniture (book value Rs 3,000)

3,200

Cash in hand

Cash at bank

10,900

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 on that date after the following adjustments: Subscription for 2017, still owing were Rs 7,000. Interest due on defence bonds was Rs7,000, 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.

Answer - 29 : -

Books of Rohatgi Trust Income and Expenditure Account as on December 31, 2017
Dr.						Cr.
Expenditure		Amount Rs	Income		Amount Rs
Rent	6,000		Subscription	83,000
Add: Outstanding	1,000	7,000	Add: Outstanding for 2017	7,000
			90,000
Salary	12,000		Less: Life Membership Fees	(400)	89,600
Less: Advance for 2018	(2,000)	10,000
			Interest Accrued on Defence Bonds		7,000
Postage		300	Profit on Sale of Investment (Rs 90,000 – Rs 80,000)		10,000
Electricity Charges		6,000	Profit on Sale of Furniture (Rs 3,200 – Rs 3,000)		200
Help to Needy Students		22,000	Interest on Investments		2,000
Surplus (Balancing Figure)		63,500
		1,08,800			1,08,800


Balance Sheet as on December 31, 2016
Liabilities		Amount Rs	Assets		Amount Rs
Capital fund (Balancing Figure)		2,01,000	Subscription Outstanding		5,000
			Investment (Rs 80,000 + Rs 30,000)		1,10,000
			Furniture		12,000
			Cash in hand		14,000
			Cash at bank		60,000
		2,01,000			2,01,000

Balance Sheet as on December 31, 2017
Expenditure		Amount Rs	Income		Amount Rs
Advance Subscription		3,000	Subscription Outstanding		7,000
Rent Outstanding		1,000	Defence Bonds	1,50,000
Capital Fund	2,01,000		Add: Accrued Interest on Defence Bonds	7,000	1,57,000
Add: Surplus	63,500
Add: Life Membership Fees	400	2,64,900	Investment		30,000
			Advance Salaries		2,000
			Furniture	12,000
			Add: Purchases	20,000
			32,000
			Less: Sales	(3,000)	29,000
			Books		3,000
			Cash in Hand		10,900
			Cash at Bank		30,000
		2,68,900			2,68,900

Question - 30 : - Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017

Receipt and Payment Account

for the year ending December 31, 2017

Receipts

Amount

Rs

Payments

Amount

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 investment

4,500

Insurances

2,000

Sale of old newspapers

200

Furniture

21,600

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 on 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 Rs1,100 accrued was not received.
(d) Rent Rs600: salary Rs900 and advertisement expenses Rs1,000 outstanding as on December 31, 2017.

Answer - 30 : -

Books of Delhi Charitable Trust Income and Expenditure Account as on December 31, 2017
Dr.			Cr.
Expenditure		Amount Rs		Income		Amount Rs
Insurance	2,000			Donation {9,000 × (1/3)}		3,000
Less: Prepaid {2,000 × (3/15)}	(400)	1,600		Interest on Investments	4,500
				Add: Accrued Interest	1,100	5,600
Charity		11,500
Rent and Taxes	3,200			Subscription		42,800
Add: Outstanding	600	3,800		Sale of Old Newspapers		200

Salary	6,000
Add: Outstanding	900	6,900
Printing		600
Postage		300
Advertisements	4,500
Add: Outstanding	1,000	5,500
Surplus (Balancing figure)		21,400
		51,600				51,600


Balance Sheet as on December 31, 2016
Liabilities		Amount Rs		Assets		Amount Rs
Capital Fund (Balancing figure)		24,100		Cash in Hand		11,500
				Cash at Bank		12,600
		24,100				24,100

Balance Sheet as on December 31, 2017
Liabilities		Amount Rs	Assets		Amount Rs
Capital Fund	24,100		Prepaid Insurance {2,000 × (3/15)}		400
Add: Donation {9,000 × (2/3)	6,000		Investment	23,000
Add: Legacies	18,000		Add: Accrued Interest	1,100	24,100
Add: Surplus	21,400	69,500	Furniture		21,600
Rent Outstanding		600	Cash in Hand		9,900
Salary Outstanding		900	Cash at Bank		16,000
Advertisement Expenses Outstanding		1,000
		72,000			72,000

Free - Previous Years Question Papers

Receipts	Amount Rs	Payments	Amount Rs
Balance from last year	2,270	Rent	6,600
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 entertainment	7,250	Printing and Stationery	1,050
Sale of old Books (books value Rs 1,000)	750	Legal fee	1,870
Interest	350	Books	6,500
		Furniture purchased	8,600
		Expenses on nukar drama	1,300
		Cash in hand	8,040
		Cash at bank	9,500

	48,870		48,870

Receipt and Payment Account for the year ending December 31, 2017
Receipts	Amount Rs	Payments	Amount Rs
Balance b/d	7,890	Salary	11,000
Subscriptions	52,000	Electric charges	5,500
Life member ship fee	2,200	Billiard Table	17,500
Entrance fee	3,200	Office expenses	4,100
Tournament fund	26,000	Printing and Stationery	2,300
Locker Rent	1,250	Tournament expenses	18,500
Sale of old sports goods (Costing Rs 2,200)	2,500	Repair of ground	2,000
Sale of Old Newspaper	750	Furniture purchased	7,700
Legacy	37,500	Sports equipments	12,000
		Cash in Hand	12,690
		Cash at Bank	10,000
		Fixed Deposit (on 1.10.17 for 10% p.a)	30,000

	1,33,290		1,33,290

		As on 1.04.2016	As on 31.03.2017
(i)	Subscription received in advance	1,000	3,200
(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

Receipt and Payment Account for the year ending March 31, 2016
Receipts		Amount (Rs)	Payments	Amount (Rs)
Opening cash balance		12,000	Furniture	4,000
Subscription			Telephone expenses	800
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 balance	2,500
		52,000		52,000

Balance Sheet for the year ending March 31, 2016
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Advance locker rent	200	Cash in hand	12,000
Subscription received in Advance	1,000	Outstanding subscription	3,000
Outstanding salary	2,000	Building	35,000
Loan	10,000
Capital fund	36,800
	50,000		50,000

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

Details	Amount Rs
Sports Fund as on April 1, 2016	80,000
Sports Fund Investments	80,000
Interest on 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 Investments	20,000

Receipt and Payment Account for the year ending December 31, 2017
Receipts		Amount Rs	Payments	Amount Rs
Cash in hand		14,000	Rent	6,000
Cash at Bank		60,000	Salary	12,000
Subscriptions: 2016 2017 2018	5,000 83,000 3,000	91,000	Postage Electricity charges Purchase of furniture Books	300 6,000 20,000 3,000
Sale of Investment		90,000	Defence Bonds	1,50,000
Interest on investment		2,000	Help to needy students	22,000
Sale of furniture (book value Rs 3,000)		3,200	Cash in hand Cash at bank	10,900 30,000
		2,60,200		2,60,200

Chapter 1 Accounting for Not for Profit Organisation Solutions

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