Dear students, here are the Illustrations Chapter 2 Accounts Of Not–For–Profit Organisation for your reference.
Illustration 1: From the following particulars of Tamil Educational Society, prepare Receipts and Payments account for the year ended 31st March, 2019.
| Particulars | Rs. | Particulars | Rs. |
|---|---|---|---|
| Opening cash balance as on 1.4.2018 | 18,000 | Building purchased | 2,10,000 |
| Rent paid | 6,000 | Staff salary | 55,000 |
| Scholarship given | 15,200 | Subscription received | 2,65,000 |
| Entrance fees received | 18,500 |
Ans:
In the books of Tamil Educational Society
Receipts and Payments Account for the year ended 31st March, 2019
| Receipts | Rs. | Payments | Rs. |
|---|---|---|---|
| To Balance b/d | By Rent paid | 6,000 | |
| Cash in hand | 18,000 | By Scholarship given | 15,200 |
| To Entrance fees | 18,500 | By Building purchased | 2,10,000 |
| To Subscription received | 2,65,000 | By Staff salary | 55,000 |
| By Balance c/d | |||
| Cash in hand | 15,300 | ||
| Total | 3,01,500 | Total | 3,01,500 |
Illustration 2: From the following particulars of Trichy Educational Society, prepare Receipts and Payments account for the year ended 31st December, 2018.
| Particulars | Rs. | Particulars | Rs |
|---|---|---|---|
| Opening cash balance as on 1.1.2018 | 20,000 | Locker rent received | 12,000 |
| Investments made | 80,000 | Sale of furniture | 5,000 |
| Honorarium paid | 3,000 | General expenses | 7,000 |
| Donation received | 80,000 | Postage | 1,000 |
| Audit fees paid | 2,000 | Subscription received | 10,000 |
Ans:
In the books of Trichy Educational Society
Receipts and Payments Account for the year ended 31st December, 2018
| Receipts | Rs. | Payments | Rs. |
|---|---|---|---|
| To Balance b/d | By Investments made | 80,000 | |
| Cash in hand | 20,000 | By Honorarium paid | 3,000 |
| To Donation received | 80,000 | By Audit fees | 2,000 |
| To Locker rent received | 12,000 | By General expenses | 7,000 |
| To Sale of furniture | 5,000 | By Postage | 1,000 |
| To Subscription | 10,000 | By Balance c/d | |
| Cash in hand | 34,000 | ||
| Total | 1,27,000 | Total | 1,27,000 |
Illustration 3: From the following particulars of Chennai Sports Club, prepare Receipts and Payments account for the year ended 31st March, 2018.
| Particulars | Rs. | Particulars | Rs. | Rs. |
|---|---|---|---|---|
| Opening cash balance as on 1.4.2017 | 10,000 | Subscriptions received | ||
| Opening bank balance as on 1.4.2017 | 15,000 | 2016 – 2017 | 4,500 | |
| Interest paid | 5,000 | 2017 – 2018 | 65,000 | |
| Telephone expenses | 7,000 | 2018 – 2019 | 5,000 | 74,500 |
| Upkeep of grounds | 22,500 | Tournament expenses | 12,500 | |
| Life membership fees received | 5,500 | Tournament fund receipts | 15,000 | |
| Bats and balls purchased | 13,000 | Closing balance of cash | 5,000 | |
| (31.3.2018) |
Ans:
In the books of Chennai Sports Club
Receipts and Payments Account for the year ended 31st March, 2018
| Receipts | Rs. | Rs. | Payments | Rs. | Rs. |
|---|---|---|---|---|---|
| To Balance b/d: | By Interest paid | 5,000 | |||
| Cash | 10,000 | By Telephone expenses | 7,000 | ||
| Bank | 15,000 | By Upkeep of grounds | 22,500 | ||
| To Life membership fees | By Bats and balls purchased | 13,000 | |||
| To Tournament fund receipts | By Tournament expenses | 12,500 | |||
| To Subscriptions received | By Balance c/d | ||||
| 2016 – 2017 | 4,500 | Cash | 5,000 | ||
| 2017 – 2018 | 65,000 | Bank (Bal. fig) | 55,000 | 60,000 | |
| 2018 – 2019 | 5,000 | ||||
| Total | 1,20,000 | Total | 1,20,000 |
Illustration 4: From the following particulars of Poompuhar Literary Association, prepare Receipts and Payments account for the year ended 31st March, 2019.
| Particulars | Rs. | Particulars | Rs. |
|---|---|---|---|
| Opening cash in hand as on 1.4.2018 | 5,000 | Subscriptions received | 20,000 |
| Bank overdraft as on 1.4.2018 | 4,000 | Repairs and renewals | 2,500 |
| Printing and stationery | 1,500 | Conveyance paid | 2,750 |
| Interest paid | 3,250 | Books purchased | 10,000 |
| Sale of investments | 1,000 | Insurance premium paid | 4,000 |
| Purchase of refreshments | 1,500 | Sundry receipts | 750 |
| Outstanding salary | 2,000 | Government grants received | 6,000 |
| Endowment fund receipts | 2,000 | Sale of refreshments | 1,500 |
| Lighting charges | 1,300 | Depreciation on buildings | 2,000 |
| Cash at bank on 31.03.2019 | 2,000 |
Ans:
In the books of Poompuhar Literary Association
Receipts and Payments Account for the year ended 31st March, 2019
| Receipts | Rs. | Payments | Rs. |
|---|---|---|---|
| To Balance b/d | By Balance b/d | ||
| Cash in hand | 5,000 | Bank overdraft | 4,000 |
| To Sale of investments | 1,000 | By Printing and stationery | 1,500 |
| To Endowment fund receipts | 2,000 | By Interest paid | 3,250 |
| To Subscriptions received | 20,000 | By Purchase of refreshments | 1,500 |
| To Sundry receipts | 750 | By Lighting charges | 1,300 |
| To Government grants received | 6,000 | By Repairs and renewals | 2,500 |
| To Sale of refreshments | 1,500 | By Conveyance paid | 2,750 |
| By Books purchased | 10,000 | ||
| By Insurance premium paid | 4,000 | ||
| By Balance c/d | |||
| Cash at bank | 2,000 | ||
| Cash in hand | 3,450 | ||
| Total | 36,250 | Total | 36,250 |
Note: Outstanding salary and depreciation are non-cash items, both are excluded in receipts and payments account.
Illustration 5: From the following particulars of Vellore Recreation Club, prepare Receipts and Payments account for the year ended 31st March, 2017.
| Particulars | Rs. | Particulars | Rs. |
|---|---|---|---|
| Opening cash balance as on 1.4.2016 | 3,000 | Receipts from entertainment | 20,000 |
| Opening bank balance as on 1.4.2016 | 12,000 | Admission fees received | 1,000 |
| Furniture purchased | 11,000 | Municipal taxes | 22,000 |
| Sports equipment purchased | 11,000 | Expenses of charity show | 2,000 |
| Donation received for pavilion | 8,000 | Billiards table purchased | 15,000 |
| Sale of old tennis balls | 1,500 | Construction of new tennis court | 18,000 |
| Newspapers bought | 500 | Receipts from charity show | 2,500 |
| Travelling expenses | 4,500 | Closing balance of cash in hand | 8,000 |
In the books of Vellore Recreation Club
Receipts and Payments Account for the year ended 31st March, 2017
| Receipts | Rs. | Rs. | Payments | Rs. |
|---|---|---|---|---|
| To Balance b/d | By Furniture purchased | 11,000 | ||
| Cash in hand | 3,000 | By Sports equipment purchased | 11,000 | |
| Cash at bank | 12,000 | 15,000 | By Newspapers bought | 500 |
| To Donation received for pavilion | 8,000 | By Travelling expenses | 4,500 | |
| To Sale of old tennis balls | 1,500 | By Municipal taxes | 22,000 | |
| To Receipts from entertainment | 20,000 | By Expenses of charity show | 2,000 | |
| To Admission fees | 1,000 | By Billiards table purchased | 15,000 | |
| To Receipts from charity show | 2,500 | By Construction of new tennis court | 18,000 | |
| To Balance c/d | By Balance c/d | |||
| (Bank overdraft) | 44,000 | Cash in hand | 8,000 | |
| Total | 92,000 | Total | 92,000 |
Illustration 6: From the following Receipts and Payment Account of Ooty Recreation Club, prepare Income and Expenditure Account for the year ended 31.03.2018.
| Receipts | Rs. | Payments | Rs. |
|---|---|---|---|
| To Opening balance | By Sports materials purchased | 10,000 | |
| Cash in hand | 5,000 | By Stationery paid | 7,000 |
| To Rent received | 10,000 | By Computer purchased | 25,000 |
| To Sale of investments | 8,000 | By Salaries | 20,000 |
| To Subscription received | 54,000 | By Closing balance | |
| Cash in hand | 15,000 | ||
| Total | 77,000 | Total | 77,000 |
Ans:
In the books of Ooty Recreation Club
Income and Expenditure Account for the year ended 31st March, 2018
| Expenditure | Rs. | Income | Rs. |
|---|---|---|---|
| To Sports materials purchased | 10,000 | By Rent received | 10,000 |
| To Stationery paid | 7,000 | By Subscription received | 54,000 |
| To Salaries | 20,000 | ||
| To Surplus | 27,000 | ||
| (Excess of income over expenditure) | |||
| Total | 64,000 | Total | 64,000 |
Illustration 7: From the following Receipts and Payment Account of Trichy Recreation Club, prepare Income and Expenditure Account for the year ended 31.03.2018.
| Receipts | Rs. | Payments | Rs. |
|---|---|---|---|
| To Opening balance | By Furniture purchased | 10,000 | |
| Cash in hand | 11,000 | By Rent | 2,800 |
| To Dividend received | 27,600 | By Secretary's honorarium | 15,000 |
| To Sale of old newspaper | 3,000 | By Postage | 1,700 |
| To Members’ subscription | 31,000 | By General expenses | 4,350 |
| To Locker rent | 8,000 | By Printing and Stationery | 45,000 |
| To Interest on investments | 1,250 | By Audit fees | 5,000 |
| To Sale of furniture | 5,000 | By Closing balance | |
| (Book value Rs. 4,400) | Cash in hand | 3,000 | |
| Total | 86,850 | Total | 86,850 |
Ans:
In the books of Trichy Recreation Club
Income and Expenditure Account for the year ended 31st March, 2018
| Expenditure | Rs. | Income | Rs. |
|---|---|---|---|
| To Rent | 2,800 | By Dividend received | 27,600 |
| To Secretary's honorarium | 15,000 | By Sale of old newspaper | 3,000 |
| To Postage | 1,700 | By Members’ subscription | 31,000 |
| To General expenses | 4,350 | By Locker rent | 8,000 |
| To Printing and stationery | 45,000 | By Interest on Investments | 1,250 |
| To Audit fees | 5,000 | By Profit on sale of furniture | 600 |
| (5,000 - 4,400) | |||
| By Deficit | 2,400 | ||
| Total | 73,850 | Total | 73,850 |
Illustration 8: From the following details calculate the amount that will be shown as subscription in Income and Expenditure Account for the year ending 31st March, 2017.
| Subscription received for | Rs. |
|---|---|
| 2015-16 | 7,500 |
| 2016-17 | 60,000 |
| 2017-18 | 1,500 |
| 69,000 |
Subscription outstanding for the year 2016-17 is Rs. 2,400. Subscription for 2016-17 received in 2015-16 was Rs. 1,000.
Ans:
Income and Expenditure Account for the year ended 31st March, 2017
| Expenditure | Rs. | Income | Rs. | Rs. |
|---|---|---|---|---|
| By Subscription | 60,000 | |||
| Add: Outstanding subscription for 2016-17 | 2,400 | |||
| Subscription received in advance for 2016-17 | 1,000 | 63,400 |
Illustration 9: How the following items will appear in the final accounts of a club for the year ending 31st March, 2019?
Receipts and Payments Account for the year ended 31st March, 2019
| Receipts | Rs. | Rs. | Payments | Rs. |
|---|---|---|---|---|
| To Subscription | ||||
| 2017-2018 | 5,000 | |||
| 2018-2019 | 48,000 | |||
| 2019-2020 | 3,000 | 56,000 |
There are 300 members in the club each paying an annual subscription of Rs. 200 per annum. Subscription still outstanding for the year 2017- 2018 is Rs. 1,000.
Ans:
Income and Expenditure Account for the year ended 31st March 2019
| Expenditure | Rs. | Rs. | Income | Rs. | Rs. |
|---|---|---|---|---|---|
| By Subscription | 48,000 | ||||
| Add: Outstanding subscription for 2018-2019 | 12,000 | 60,000 |
Balance sheet as on 31st March, 2019
| Liabilities | Rs. | Assets | Rs. | Rs. |
|---|---|---|---|---|
| Subscription received in | Outstanding subscription | |||
| advance for the year 2019-20 | 3,000 | 2017 – 2018 | 1,000 | |
| 2018 – 2019 | 12,000 | 13,000 |
| Total Subscription due for current the year (2018-19) 300 x Rs. 200 | Rs.60,000 |
||
| Less: Amount received for the current year (2018-19) | Rs.48,000 |
||
| Outstanding subscription for the current year (2018-2019) | Rs.12,000 |
||
Illustration 10: How will the following items appear in the final accounts of a club for the year ending 31st March 2017?
A club received subscription of Rs. 25,000 during the year 2016-17. This includes subscription of Rs. 2,000 for 2015-16 and Rs. 1,500 for the year 2017-18. Subscription of Rs. 500 is still outstanding for the year 2016-17.
Ans:
Income and Expenditure Account for the year ended 31st March, 2017
| Expenditure | Rs. | Rs. | Income | Rs. | Rs. |
|---|---|---|---|---|---|
| By Subscription | 25,000 | ||||
| Less: Subscription for the year 2015-16 | 2,000 | ||||
| 23,000 | |||||
| Less: Subscription for the year 2017-18 | 1,500 | ||||
| 21,500 | |||||
| Add: Outstanding subscription for the year 2016-17 | 500 | 22,000 |
Balance sheet as on 31st March, 2017
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Subscription received in advance for the year 2017-18 | Outstanding subscription for the year 2016-2017 | ||
| 1500 | 500 |
Illustration 11: Compute income from subscription for the year 2018 from the following particulars relating to a club.
| Particulars | 1.1.2018 (Rs.) | 31.12.2018 (Rs.) |
|---|---|---|
| Outstanding subscription | 10,000 | 7,000 |
| Subscription received in advance | 3,000 | 5,000 |
Subscription received during the year 2018: Rs. 1,50,000.
Ans:
Calculation of income from subscription for the year 2018:
| Particulars | Rs. | Rs. |
|---|---|---|
| Subscription received during the year 2018 | 1,50,000 | |
| Add: Subscription received for 2018 in 2017 | 3,000 | |
| Subscription outstanding for 2018 | 7,000 | 10,000 |
| 1,60,000 | ||
| Less: Subscription outstanding in 2017 | 10,000 | |
| Subscription received in advance in 2018 | 5,000 | 15,000 |
| Income from subscription for the year 2018 | 1,45,000 |
Illustration 12: From the following particulars, show how the item ‘subscription’ will appear in the Income and Expenditure Account for the year ended 31-12-2018?
Subscription received in 2018 is Rs. 16,000 which includes Rs. 3,000 for 2017 and Rs. 5,000 for 2019. Subscription outstanding for the year 2018 is Rs. 4,000. Subscription of Rs. 2,000 was received in advance for 2018 in the year 2017.
Ans:
Income and Expenditure Account for the year ended 31st December, 2018
| Expenditure | Rs. | Rs. | Income | Rs. | Rs. |
|---|---|---|---|---|---|
| By Subscription received during the year | 16,000 | ||||
| Less: Subscription received for 2017 | 3,000 | ||||
| 13,000 | |||||
| Less: Subscription received for 2019 | 5,000 | ||||
| 8,000 | |||||
| Add: Subscription due for 2018 | 4,000 | ||||
| 12,000 | |||||
| Add: Received in advance in 2017 for 2018 | 2,000 | 14,000 |
Illustration 13: How will the following items appear in the final accounts of a sports club?
| Particulars | Rs. |
|---|---|
| Stock of sports materials (01.04.2018) | 3,000 |
| Sports materials purchased during current year | 9,000 |
| Sale of old sport materials during current year | 500 |
| Stock of sports materials (31.03.2019) | 4,000 |
Ans:
Income and Expenditure Account for the year ended 31st March, 2019
| Expenditure | Rs. | Rs. | Income | Rs. |
|---|---|---|---|---|
| To Sports materials consumed: | By Sale of old sports materials | 500 | ||
| Opening stock | 3,000 | |||
| Add: Purchased in the current year | 9,000 | |||
| 12,000 | ||||
| Less: Closing stock | 4,000 | 8,000 |
Balance sheet as on 31st March, 2019
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Stock of sports materials | 4000 |
Illustration 14: From the following details calculate the printing and stationery to be debited to Income and Expenditure Account for the year ending 31st March, 2018 and also show how it will appear in the Balance Sheet as on 31st March, 2018.
| Amount paid for stationery during 2017- 2018 | Rs.1500 |
|
| Stock of stationery on 1st April, 2017 | Rs.300 | |
| Stock of stationery on 31st March, 2018 | Rs.200 | |
Ans:
Income and Expenditure Account for the year ended 31st March, 2018
| Expenditure | Rs. | Rs. | Income | Rs. |
|---|---|---|---|---|
| To Stationery consumed: | ||||
| Opening stock | 300 | |||
| Add: Purchases | 1,500 | |||
| 1,800 | ||||
| Less: Closing stock | 200 | 1,600 |
Balance sheet as on 31st March, 2018
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Stock of Stationery | 200 |
Illustration 15: How will the following appear in the final accounts of a club for the year 2017 –2018?
| Particulars | Rs. |
|---|---|
| Prize fund on 1.4.2017 | 60,000 |
| Prize fund investment on 1.4.2017 | 60,000 |
| Interest received on prize fund investment | 6,000 |
| Prizes distributed | 8,000 |
| Donation received for prize fund | 12,000 |
Ans:
Balance sheet as on 31st March, 2018
| Liabilities | Rs. | Assets | Rs. | |
|---|---|---|---|---|
| Prize fund | 60,000 | Prize fund investment | 60,000 | |
| Add: Interest received on prize fund investment | 6,000 | |||
| Add: Donation for prize fund | 12,000 | |||
| 78,000 | ||||
| Less: Prizes distributed | 8,000 | 70,000 |
Illustration 16: Compute capital fund of Karur Social Club as on 31.03.2018.
| Particulars as on 31.03.2018 | Rs. |
|---|---|
| Furniture | 50,000 |
| Buildings | 40,000 |
| Subscription outstanding for 2017-18 | 10,000 |
| Subscription received in advance for 2018-19 | 5,000 |
| Loan borrowed | 10,000 |
| Investments | 20,000 |
| Cash in hand | 4,000 |
| Cash at bank | 6,000 |
Ans:
Balance sheet as on 31st March, 2018
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Capital fund | 1,15,000 | Buildings | 40,000 |
| (Balancing figure) | Furniture | 50,000 | |
| Loan borrowed | 10,000 | Investments | 20,000 |
| Subscription received in advance | 5,000 | Subscription outstanding | 10,000 |
| Cash at bank | 6,000 | ||
| Cash in hand | 4,000 | ||
| Total | 1,30,000 | Total | 1,30,000 |
Illustration 17: From the following Receipts and Payments Account of Friends Football club, for the year ending 31st March, 2017, prepare Income and Expenditure Account for the year ending 31st March, 2017 and the Balance sheet as on that date.
In the books of Friends Football Club
Receipts and Payments Account for the year ended 31st March, 2017
| Receipts | Rs. | Rs. | Payments | Rs. | Rs. |
|---|---|---|---|---|---|
| To Balance b/d | By Furniture | 7,000 | |||
| Cash | 1,000 | By Sports materials purchased | 800 | ||
| Bank | 10,000 | 11,000 | By Special dinner expenses | 1,500 | |
| To Subscriptions | 5,000 | By Electricity charges | 900 | ||
| To Legacies | 6,000 | By Balance c/d | |||
| To Collection for special dinner | 2,000 | Cash in hand | 1,800 | ||
| Cash at bank | 12,000 | 13,800 | |||
| Total | 24,000 | Total | 24,000 |
Additional information:
(i) The club had furniture of Rs. 12,000 on 1st April 2016. Ignore depreciation on furniture.
(ii) Subscription outstanding for 2016-2017 Rs. 600.
(iii) Stock of sports materials on 31.03.2017 Rs. 100.
(iv) Capital fund as on 1st April 2016 was Rs. 23,000.
Ans:
In the books of Friends Football Club
Income and Expenditure Account for the year ended 31st March, 2017
| Expenditure | Rs. | Rs. | Income | Rs. | |
|---|---|---|---|---|---|
| To Sports materials consumed | By Subscription | 5,000 | |||
| Purchases | 800 | Add: Outstanding for 2016-17 | 600 | 5,600 | |
| Less: Closing stock | 100 | 700 | By Collection for special dinner | 2,000 | |
| To Special dinner expenses | 1,500 | ||||
| To Electricity charges | 900 | ||||
| To Excess of income over expenditure (surplus) | 4,500 | ||||
| Total | 7,600 | Total | 7,600 |
Balance sheet as on 31st March, 2017
| Liabilities | Rs. | Rs. | Assets | Rs. | Rs. |
|---|---|---|---|---|---|
| Capital fund | 23,000 | Furniture | 12,000 | ||
| Add: Excess of income over expenditure (surplus) | 4,500 | 27,500 | Add: Additions | 7,000 | 19,000 |
| Legacies | 6,000 | Stock of sports materials | 100 | ||
| Subscription outstanding for 2016-17 | 600 | ||||
| Cash at bank | 12,000 | ||||
| Cash in hand | 1,800 | ||||
| Total | 33,500 | Total | 33,500 |
Illustration 18: Following is the Receipts and Payments Account of Salem Recreation Club for the year ended 31st March, 2019.
In the books of Salem Recreation Club
Receipts and Payments Account for the year ended 31st March, 2019
| Receipts | Rs. | Rs. | Payments | Rs. |
|---|---|---|---|---|
| To Balance b/d: | By Furniture | 15,000 | ||
| Cash in hand | 9,000 | By Stationery | 2,400 | |
| To Subscriptions | By Investment | 12,500 | ||
| 2018 – 2019 | 12,500 | By Postage | 1,000 | |
| 2019 – 2020 | 400 | 12,900 | By Balance c/d: | |
| To Proceeds from entertainment | 12,000 | Cash in hand | 3,500 | |
| To Sundry receipts | 500 | |||
| Total | 34,400 | Total | 34,400 |
Additional information:
(i) There are 450 members each paying annual subscription of Rs. 30.
(ii) Stock of stationery on 31st March, 2018 Rs. 300 and on March 31, 2019 Rs. 500.
(iii) Capital fund as on 1st April 2018 was Rs. 9,300.
Prepare income and expenditure account for the year ended 31st March, 2019 and the balance sheet as on that date.
Ans:
Calculation of subscription to be received for the year 2018-19:
| Particulars as on 31.03.2018 | Rs. | |
|---|---|---|
| Subscription for the current year (450 × Rs. 30) | 13,500 | |
| Subscription received for the current year | 12,500 | |
| Subscription outstanding for the current year | 1,000 | |
| (Rs.13,500 – Rs.12,500) | ||
In the books of Salem Recreation Club
Income and Expenditure Account for the year ended 31st March, 2019
| Expenditure | Rs. | Rs. | Income | Rs. | Rs. |
|---|---|---|---|---|---|
| To Stationery | 2,400 | By Subscription | 12,500 | ||
| Add: Opening stock | 300 | Add: Outstanding for 2018-19 | 1,000 | ||
| 2,700 | (450 × Rs. 30) | 13,500 | |||
| Less: Closing stock | 500 | 2,200 | By Proceeds from entertainment | 12,000 | |
| To Postage | 1,000 | By Sundry receipts | 500 | ||
| To Excess of income over expenditure (surplus) | 22,800 | ||||
| Total | 26,000 | Total | 26,000 |
Balance sheet as on 31st March, 2019
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Capital fund | 9,300 | Furniture | 15,000 |
| Add: Excess of income over expenditure (surplus) | 22,800 | Investment | 12,500 |
| Subscription received in advance | Subscription in arrears for 2018-19 | 1,000 | |
| Stock of stationery | 500 | ||
| Cash in hand | 3,500 | ||
| Total | 32,500 | Total | 32,500 |
Illustration 19: From the following Receipts and Payments account of Coimbatore Cricket Club for the year ending 31st March 2016, prepare income and expenditure account for the year ending 31st March, 2016 and a balance sheet as on that date.
In the books of Coimbatore Cricket Club
Receipts and Payments Account for the year ending 31st March, 2016
| Receipts | Rs. | Payments | Rs. |
|---|---|---|---|
| To Balance b/d: | By Maintenance | 5,000 | |
| Cash at bank | 8,000 | By Furniture | 15,000 |
| To Subscriptions | 11,000 | By Tournament expenses | 1,400 |
| To Sale of old bats and balls | 100 | By Secretary’s honorarium | 4,500 |
| To Subscription for tournament | 2,000 | By Bats and balls | 7,400 |
| To Legacies | 20,000 | By Balance c/d: | |
| Cash at bank | 7,800 | ||
| Total | 41,100 | Total | 41,100 |
Additional information:
On 1st April, 2015 the club had stock of balls and bats Rs. 3,000 and an advance subscription of Rs. 500. Surplus on account of tournament should be kept in reserve for permanent pavilion. Subscription due on 31.03.2016 was Rs. 2,000. Stock of bats and balls on 31.3.2016 was Rs. 1,000.
Ans:
In the books of Coimbatore Cricket Club
Balance sheet as on 31st March, 2015
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Capital fund | 10,500 | Stock of balls and bats | 3,000 |
| (Balancing figure) | Cash at bank | 8,000 | |
| Subscription received in advance | 500 | ||
| Total | 11,000 | Total | 11,000 |
Income and Expenditure Account for the year ended 31st March, 2016
| Expenditure | Rs. | Rs. | Income | Rs. | Rs. |
|---|---|---|---|---|---|
| To Maintenance | 5,000 | By Subscriptions | 11,000 | ||
| To Secretary’s honorarium | 4,500 | Add: Received in advance in 2014-15 for 2015-16 | 500 | ||
| To Bats and balls | 7,400 | 11,500 | |||
| Add: Opening stock | 3,000 | Add: Outstanding for 2015-16 | 2,000 | 13,500 | |
| 10,400 | By Sale of old bats and balls | 100 | |||
| Less: Closing stock | 1,000 | 9,400 | By Excess of expenditure over income (deficit) | 5,300 | |
| Total | 18,900 | Total | 18,900 |
Balance sheet as on 31st March, 2016
| Liabilities | Rs. | Assets | Rs. | |
|---|---|---|---|---|
| Capital fund | 10,500 | Furniture | 15,000 | |
| Less : Excess of expenditure over income (deficit) | 5,300 | 5,200 | Stock of balls and bats | 1,000 |
| Reserve for Pavilion Fund | Subscriptions outstanding | 2,000 | ||
| Subscriptions for tournament | 2,000 | Cash at bank | 7,800 | |
| Less: Tournament Expenses | 1,400 | 600 | ||
| Legacies | 20,000 | |||
| Total | 25,800 | Total | 25,800 |
Illustration 20: The following is the summary of cash transactions of Delhi Literary Club for the year ending 31st March, 2019.
Delhi Literary Club
Receipts and Payments Account for the year ending 31st March, 2019
| Receipts | Rs. | Payments | Rs. |
|---|---|---|---|
| To Balance b/d | By Rents and Rates | 21,000 | |
| Cash in hand | 3,200 | By Lecture fees | 4,500 |
| To Entrance fees | 2,300 | By Sundry expenses | 7,200 |
| To Subscriptions | 46,000 | By Fixed deposit | 40,000 |
| To Life membership fees | 2,500 | By Balance c/d | |
| To Interest received on fixed deposit | 500 | Cash in hand | 4,300 |
| To Sale of furniture (on 1.4.2018) | 22,500 | ||
| (Book value Rs. 25,000) | |||
| Total | 77,000 | Total | 77,000 |
Additional information
(a) At the beginning of the year the club possessed books worth Rs. 20,000 and furniture worth Rs. 40,000.
(b) Subscription received in advance during the current year amounted to Rs. 1,000.
Prepare Income and Expenditure account of the club for the year ending 31st March, 2019 and the Balance sheet as on that date.
Ans:
In the books of Delhi Literary Club
Balance sheet as on 31st March, 2018
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Capital fund | 63,200 | Furniture | 40,000 |
| (Balancing figure) | Books | 20,000 | |
| Cash in hand | 3,200 | ||
| Total | 63,200 | Total | 63,200 |
Income and Expenditure Account for the year ended 31st March, 2019
| Expenditure | Rs. | Income | Rs. | Rs. |
|---|---|---|---|---|
| To Rent and rates | 21,000 | By Entrance fees | 2,300 | |
| To Lecture fees | 4,500 | By Subscriptions | 46,000 | |
| To Sundry expenses | 7,200 | Less: Received in advance during current year | 1,000 | 45,000 |
| To Loss on sale of furniture | 2,500 | By Interest received on fixed deposit | 500 | |
| (25,000-22,500) | ||||
| To Excess of income over expenditure (surplus) | 12,600 | |||
| Total | 47,800 | Total | 47,800 |
Balance sheet as on 31st March, 2019
| Liabilities | Rs. | Rs. | Assets | Rs. | Rs. |
|---|---|---|---|---|---|
| Capital fund | 63,200 | Furniture | 40,000 | ||
| Add: Excess of income over expenditure | 12,600 | 75,800 | Less: Book value furniture sold | 25,000 | 15,000 |
| Life membership fees | 2,500 | Books | 20,000 | ||
| Subscription received in advance | 1,000 | Fixed deposit | 40,000 | ||
| Cash in hand | 4,300 | ||||
| Total | 79,300 | Total | 79,300 |
Illustration 21: The following is the Receipts and Payments account of Madurai City Club for the year ending 31st March, 2018.
Madurai City Club
Receipts and Payments Account for the year ended 31st March, 2018
| Receipts | Rs. | Rs. | Payments | Rs. | Rs. |
|---|---|---|---|---|---|
| To Balance b/d: | By Upkeep of ground | 16,500 | |||
| Cash | 500 | By Match expenses | 19,000 | ||
| Bank | 7,000 | 7,500 | By Sundry expenses | 11,000 | |
| To Subscription | 30,000 | By Furniture | 20,000 | ||
| (including Rs. 4,000 for 2016-2017) | By Balance c/d: | ||||
| To Legacies | 9,000 | Cash in hand | 1,500 | ||
| To Hall rent | 10,000 | Cash at bank | 11,000 | 12,500 | |
| To Receipts for match fund | 22,500 | ||||
| Total | 79,000 | Total | 79,000 |
Additional information:
On 1st April, 2017, the club had investment of Rs. 40,000. The club also had a credit balance of Rs. 30,000 in Match fund account. On 31st March, 2017 subscriptions in arrears were Rs. 4,000 and the subscriptions in arrears on 31st March, 2018 were Rs. 4,500.
Prepare the final accounts.
Ans:
In the books of Madurai City Club
Balance sheet of as on 31st March, 2017
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Capital fund | 21,500 | Investment | 40,000 |
| (Balancing figure) | Subscriptions outstanding | 4,000 | |
| Match fund | 30,000 | Cash at bank | 7,000 |
| Cash in hand | 500 | ||
| Total | 51,500 | Total | 51,500 |
Income and Expenditure Account for the year ended 31st March, 2018
| Expenditure | Rs. | Income | Rs. | Rs. |
|---|---|---|---|---|
| To Upkeep of ground | 16,500 | By Subscriptions | 30,000 | |
| To Sundry expenses | 11,000 | Less: Received for 2016-17 | 4,000 | |
| To Excess of income over expenditure (surplus) | 13,000 | 26,000 | ||
| Add: Outstanding for the current year | 4,500 | 30,500 | ||
| By Hall rent | 10,000 | |||
| Total | 40,500 | Total | 40,500 |
Balance sheet as on 31st March, 2018
| Liabilities | Rs. | Rs. | Assets | Rs. |
|---|---|---|---|---|
| Capital fund | 21,500 | Furniture | 20,000 | |
| Add: Excess of income over expenditure (surplus) | 13,000 | 34,500 | Investment | 40,000 |
| Legacies | 9,000 | Subscription outstanding | 4,500 | |
| Match fund | 30,000 | Cash at bank | 11,000 | |
| Add: Receipts for match fund | 22,500 | Cash in hand | 1,500 | |
| 52,500 | ||||
| Less: Match expenses | 19,000 | 33,500 | ||
| Total | 77,000 | Total | 77,000 |
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