Students, here are the answers for the book back exercises in Chapter 2 Accounts Of Not–For–Profit Organisation. If you have any doubts, please reach out to us in the comments section.
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Important Formulas, Accounts Formats and Notes for Chapter 2
Illustration problems in Chapter 2 Accounts Of Not–For–Profit Organisation.
Text Book Solutions
Multiple Choice Questions:
1. Receipts and payments account is a | |
a) Nominal A/c | b) Real A/c |
c) Personal A/c | d) Representative personal account |
2. Receipts and payments account records receipts and payments of | |
a) Revenue nature only | b) Capital nature only |
c) Both revenue and capital nature | d) None of the above |
3. Balance of receipts and payments account indicates the | |
(a) Loss incurred during the period | (b) Excess of income over expenditure of the period |
(c) Total cash payments during the period | (d) Cash and bank balance as on the date |
4. Income and expenditure account is a | |
a) Nominal A/c | b) Real A/c |
c) Personal A/c | d) Representative personal account |
5. Income and Expenditure Account is prepared to find out | |
a) Profit or loss | b) Cash and bank balance |
c) Surplus or deficit | d) Financial position |
6. Which of the following should not be recorded in the income and expenditure account? | |
a) Sale of old news papers | b) Loss on sale of asset |
c) Honorarium paid to the secretary | d) Sale proceeds of furniture |
7. Subscription due but not received for the current year is | |
a) An asset | b) A liability |
c) An expense | d) An item to be ignored |
8. Legacy is a | |
a) Revenue expenditure | b) Capital expenditure |
c) Revenue receipt | d) Capital receipt |
9. Donations received for a specific purpose is | |
a) Revenue receipt | b) Capital receipt |
c) Revenue expenditure | d) Capital expenditure |
10. There are 500 members in a club each paying Rs. 100 as annual subscription. Subscription due but not received for the current year is Rs. 200; Subscription received in advance is Rs. 300. Find out the amount of subscription to be shown in the income and expenditure account. | |
a) Rs. 50,000 | b) Rs. 50,200 |
c) Rs. 49,900 | d) Rs. 49,800 |
Very short answer questions
1. State the meaning of not–for–profit organisation.
Some organisations are established for the purpose of rendering services to the public withoutany profit motive. They may be created for the promotion of art, culture, education, sports, etc. These organisations are called not–for–profit organisation.
2. What is receipts and payments account?
Receipts and Payments account is a summary of cash and bank transactions of not–for–profit organisations prepared at the end of each financial year. It is a real account in nature.
3. What is legacy?
A gift made to a not–for–profit organisation by a will, is called legacy. It is a capital receipt.
4. Write a short note on life membership fees.
Life membership fees refers to a one-time payment made by an individual or an organization to become its member for the rest of their life. It is a capital receipt as it is non-recurring in nature.
5. Give four examples for capital receipts of not–for–profit organisation.
Life membership fees, legacies, specific donations and sale of fixed assets are four examples for capital receipts of not–for–profit organisation.
6. Give four examples for revenue receipts of not–for–profit organisation.
Subscription, interest on investment, interest on fixed deposits and sale of old newspapers are four examples for revenue receipts of not–for–profit organisation.
Short answer questions
1. What is income and expenditure account?
Income and expenditure account is a summary of income and expenditure of a not–for–profit organisation prepared at the end of an accounting year. It is prepared to find out the surplus or deficit pertaining to a particular year.
It is a nominal account in nature in which items of revenue receipts and revenue expenditure, relating to the current year alone are recorded. It is prepared following the accrual basis of accounting.
It is just like preparing a profit and loss account. In this account, incomes are shown on the credit side and expenses are shown on the debit side. Apart from cash items, non-cash items such as income accrued but not received, loss or gain on sale of fixed assets, depreciation, etc. will also be recorded.
It helps to enable the members to know the working of the organisation and to know whether its income is sufficient to meet its expenses. It can be prepared from a given receipts and payments account.
2. State the differences between Receipts and Payments Account and Income and Expenditure Account.
Basis | Receipts and Payments Account | Income and Expenditure Account |
---|---|---|
Purpose | It is prepared to know the cash receipts and cash payments. | It is prepared to know whether there is an excess of income over expenditure (surplus) or an excess of expenditure over income (deficit) during the current period. |
Nature of account | It is a real account. It is a summary of cash account. Cash receipts are recorded on the debit side and cash payments are recorded on the credit side. | It is a nominal account. It is similar to profit and loss account. Expenses are recorded on the debit side and incomes are recorded on the credit side. |
Basis of accounting | It is based on cash system of accounting. Non-cash items are not recorded. | It is based on accrual system of accounting. Non-cash items like outstanding expenses, depreciation, etc. are also recorded. |
Opening and closing balance | It commences with an opening balance of cash and bank and ends with closing balance of cash and bank. | There is no opening balance. It ends with surplus or deficit. |
Nature of items | It contains actual receipts and payments irrespective of revenue or capital items in nature. | It contains only revenue items, that is, only revenue expenses and revenue incomes. |
Period | All cash receipts and payments made during the year pertaining to the past period, current period and subsequent period are recorded. | It contains only the items relating to the current period. |
3. How annual subscription is dealt with in the final accounts of not–for–profit organisation?
Treatment in Income and Expenditure Account
When subscription received for the current year, previous years and subsequent period are given separately, subscription received for the current year will be shown on the credit side of Income and Expenditure Account after making the adjustments given below:
(i) Subscription outstanding for the current year is to be added.
(ii) Subscription received in advance in the previous year which is meant for the current year, is to be added.
When total subscription received during the current year is given, total subscriptions received during the current year will be shown on the credit side of Income and Expenditure Account after making the following adjustments:
(i) Subscription outstanding in the previous year which is received in the current year will be subtracted. Subscription outstanding for the current year is added.
(ii) Subscriptions received in advance in the previous year which is meant for the current year, is added and subscriptions received in advance in the current year which is meant for the subsequent year must be subtracted.
Treatment in Balance Sheet
(i) Subscriptions outstanding for the current year and still outstanding for the previous year will be shown on the assets side of the balance sheet.
(ii) Subscriptions received in advance in the current year will be shown on the liabilities side of the balance sheet.
4. How the following items are dealt with in the final accounts of not–for–profit organisation?
a) Sale of sports materials b) Life membership fees c) Tournament fund
a. The sale proceeds of old sports materials like balls, bats, etc. are treated as revenue receipts.
b. Amount received towards life membership fee from members is a capital receipt as it is non-recurring in nature.
c. Amount received from a specific fund such as towards Tournament fund should be treated as a capital receipt and shown on the liabilities side of the Balance sheet.
Exercises:
1. From the information given below, prepare Receipts and Payments account of Kurunji Sports Club for the year ended 31st December, 2018.
Particulars | Rs. | Particulars | Rs. |
---|---|---|---|
Cash in hand (01.01.2018) | 4,000 | Paid for printing charges | 2,500 |
Salaries paid | 3,000 | Lockers rent received | 1,000 |
Life membership fees received | 10,000 | Tournament receipts | 14,000 |
Subscription received | 15,000 | Tournament expenses | 10,500 |
Rent received | 2,000 | Investments purchased | 25,000 |
Ans:
In the Books of Kurunji Sports Club
Receipt and Payment Account for the year ending March 31st, 2017
Receipts | Rs. | Rs. | Payment | Rs. | Rs. |
---|---|---|---|---|---|
To Balance b/d (Cash) | 4,000 | By Salaries paid | 3,000 | ||
To Life membership fees received | 10,000 | By Paid for printing charges | 2,500 | ||
To Subscription received | 15,000 | By Investments purchased | 25,000 | ||
To Rent received | 2,000 | By Balance c/d (cash) | 5,000 | ||
By Lockers rent received | 1,000 | ||||
By Tournament receipts | 14,000 | ||||
Less : Tournament Expenses | 10,500 | 3,500 | |||
Total | 35,500 | Total | 35,500 |
2. From the information given below, prepare Receipts and Payments account of Coimbatore Cricket Club for the year ending 31st March, 2019.
Particulars | Rs. | Rs. | Particulars | Rs. |
---|---|---|---|---|
Bank overdraft (1.4.2018) | 6,000 | Honorarium paid | 2,800 | |
Cash in hand (1.4.2018) | 1,000 | Water and electricity charges | 700 | |
Wages paid for ground maintenance | 2,000 | Match expenses | 2,600 | |
Subscription received: | Sports material purchased | 1,900 | ||
Previous year | 500 | Match fund receipts | 5,200 | |
Current year | 9,600 | Legacies received | 2,000 | |
Subsequent year | 400 | 10,500 | Cash balance (31.03.2019) | 300 |
Wages yet to be paid | 2,200 | Donation received for pavilion | 2,000 | |
Interest on loan paid | 2,000 |
Ans:
In the book of Coimbatore Cricket Club
Receipts and Payment Account for the year ended 31st March 2018
Receipts | Rs. | Rs. | Payments | Rs. | Rs. |
---|---|---|---|---|---|
To Balance b/d (Cash) | 1,000 | By Balance b/d (Bank o/d) | 6,000 | ||
Subscription received | By Wages yet to be paid | 2,000 | |||
Previous year | 500 | By Interest on loan paid | 2,000 | ||
Current year | 9,600 | By Honorarium paid | 2,800 | ||
Subsequent year | 400 | 10,500 | By Water and electricity | 7,00 | |
To Match fund receipts | 5,200 | charges | 2,600 | ||
To Legacies received | 2,000 | By Match expenses | 1,900 | ||
To Donation received for pavilion | 2,000 | By Sports material purchased | |||
By Balance c/d | |||||
Cash | 300 | ||||
Bank | 2,400 | 2,700 |
|||
Total | 20,700 | Total | 20,700 |
3. From the information given below, prepare Receipts and Payments account of Madurai Mother Theresa Mahalir Mandram for the year ended 31st December, 2018.
Particulars | Rs. | Particulars | Rs. |
---|---|---|---|
Cash balance as on 1.1.2018 | 2,000 | Fire Insurance premium paid | 1,500 |
Bank balance as on 1.1.2018 | 3,000 | Subscription received | 8,500 |
Sale of old newspapers | 500 | Furniture purchased | 6,000 |
Stationery purchased | 6,000 | Purchase of newspapers | 700 |
Audit fees paid | 2,000 | Depreciation on furniture | 900 |
Entrance fees received | 3,000 | Cash balance as on 31.12.2018 | 2,500 |
Sundry charges | 6,000 | Conveyance paid | 1,000 |
Scholarships given | 2,000 | Sale of furniture | 4,000 |
Interest on investments | 2,000 |
Ans:
In the books of Madurai Mother Theresa Mahalir Mandram
Receipts and Payments a/c for the year ended 31.03.2019
Receipts | Rs. | Rs. | Payments | Rs. |
---|---|---|---|---|
To Balance b/d | By Stationery purchased | 6,000 | ||
Cash | 2,000 | By Audit fees paid | 2,000 | |
Bank | 3,000 | 5,000 | By Sundry charges | 6,000 |
To Sale of old newspapers | 500 | By Scholarship given | 2,000 | |
To Entrance fees received | 3,000 | By Fire Insurance premium paid | 1,500 | |
To Interest on investments | 2,000 | By Furniture purchased | 6,000 | |
To Subscription received | 8,500 | By purchase of newspapers | 700 | |
To Sale of furniture | 4,000 | By Conveyance paid | 1,000 | |
To Balance c/d (Bank) O/D | 4,700 | By Balance c/d (cash) | 2,500 | |
Total | 27,700 | Total | 27,700 |
4. Mayiladuthurai Recreation Club gives you the following details. Prepare Receipts and Payments account for the year ended 31st March, 2019.
Particulars | Rs. | Particulars | Rs. |
---|---|---|---|
Opening cash balance | 15,000 | Salary of watchman | 12,000 |
Opening bank balance | 25,000 | Club annual day expenses | 15,000 |
Donations received | 48,000 | Lighting charges | 16,500 |
Sale of old equipment | 26,000 | Entertainment expenses | 13,500 |
Refreshment charges | 13,000 | Billiards table purchased | 5,000 |
Club annual day collections | 18,000 | Expenses of charity show | 3,000 |
Construction of tennis court | 7,000 | Sale of investments | 12,000 |
Receipts from charity show | 4,000 | Closing cash balance | 12,000 |
Rent paid | 1,000 |
Ans:
In the book of Mayiladuthurai Recreation Club
Receipts and Payment Account for the year ended 31st March 2019
Receipts | Rs. | Payments | Rs. |
---|---|---|---|
To Balance b/d (Cash) | 15,000 | By Refreshment charges | 13,000 |
(Bank) | 25,000 | By Construction of tennis court | 7,000 |
To Donations received | 48,000 | By Rent paid | 1,000 |
To Sale of old equipment | 26,000 | By Salary of watchman | 12,000 |
To Club annual day collections | 18,000 | By Club annual day expenses | 15,000 |
To Receipts from charity show | 4,000 | By Lighting charges | 16,500 |
To Sale of investments | 12,000 | By Entertainment expenses | 13,500 |
By Billiards table purchased | 5,000 | ||
By Expenses of charity show | 3,000 | ||
By Balance b/d (Cash) | 12,000 | ||
50,000 | |||
Total | 1,48,000 | Total | 1,48,000 |
5. From the following information, prepare Receipts and Payments account of Cuddalore Kabaddi Association for the year ended 31st March, 2019.
Particulars | Rs. | Particulars | Rs. |
---|---|---|---|
Opening cash balance (1.4.2018) | 11,000 | Interest and bank charges | 250 |
Bank overdraft balance (1.4.2018) | 20,000 | Miscellaneous income | 350 |
Stationery purchased | 5,200 | Upkeep of ground | 550 |
Travelling expenses | 1,800 | Grant from Government | 12,000 |
Dividend received | 3,000 | Telephone charges paid | 2,800 |
General expenses | 500 | Endowment fund receipts | 10,000 |
Admission fees | 4,000 | Insurance premium paid | 2,000 |
Courier charges | 2,000 | Electricity charges paid | 5,000 |
Municipal taxes paid | 3,000 | Closing cash balance (31.03.2019) | 1,750 |
Ans:
In the books of Cuddalore Kabadi Association
Receipts and Payment Account for the year ended 31st March 2019
Receipts | Rs. | Payments | Rs. |
---|---|---|---|
To Balance b/d (Cash) | 11,000 | By Balance b/d (Bank) O/D | 20,000 |
To Divident received | 3,000 | By Stationery purchased | 5,200 |
To Admission fees | 4,000 | By Travelling expenses | 1,800 |
To Miscellaneous income | 350 | By General expenses | 500 |
To Grant from Government | 12,000 | By Courier charges | 2,000 |
To Endowment fund receipts | 10,000 | By Municipal tax paid | 3,000 |
To Balance c/d (Bank O/D) | 4,500 | By Interest and bank charges | 250 |
By Upkeep of ground | 550 | ||
By Telephone charges paid | 2,800 | ||
By Insurance premium paid | 2,000 | ||
By Electricity charges paid | 5,000 | ||
By Balance C/d (Cash) | 1,750 | ||
Total | 44,850 | Total | 44,850 |
6. From the following receipts and payments account of Tenkasi Thiruvalluvar Manram, prepare income and expenditure account for the year ended 31st March, 2019.
Receipts | Rs. | Payments | Rs. |
---|---|---|---|
To Balance b/d | By Salaries | 20,000 | |
Cash in hand | 14,000 | By Rent | 24,000 |
To Interest received | 5,000 | By Travelling expenses | 2,000 |
To Subscription | 55,000 | By Printing and stationery | 6,000 |
To Legacies | 48,000 | By Investments made | 50,000 |
To Entrance fees | 7,000 | By Sports equipment purchased | 33,000 |
To Sale of furniture | 16,000 | By Balance c/d | |
(Book value: Rs.17,000) | Cash in hand | 10,000 | |
Total | 1,45,000 | Total | 1,45,000 |
Ans:
In the books of Tenkasi Thiruvalluvar Manram
Income and Expenditure Account for the year ended 31st March 2019
Expenditure | Rs. | Income | Rs. |
---|---|---|---|
To loss on sale of furniture | 1,000 | By Interest received | 5,000 |
To Salaries | 20,000 | By Subscription | 55,00 |
To Rent | 24,000 | By Entrance fees | 7,000 |
To Travelling expenses | 2,000 | ||
To Printing and Stationery | 6,000 | ||
To Surplus (Excess of income over expenditure) | 14,000 | ||
Total | 67,000 | Total | 67,000 |
7. From the following receipts and payment account, prepare income and expenditure account of Kumbakonam Basket Ball Association for the year ended 31st March, 2018.
Receipts | Rs. | Rs. | Payments | Rs. | Rs. |
---|---|---|---|---|---|
To Balance b/d | By Rent of ground paid | 12,000 | |||
Cash in hand | 23,000 | By Printing charges | 5,000 | ||
Cash at bank | 12,000 | 35,000 | By Bank charges | 1,000 | |
To Rent of hall received | 6,000 | By Insurance of building | 2,000 | ||
To Subscription received | 9,000 | By Tournament expenses | 16,000 | ||
To Life membership fees | 7,000 | By Audit fees | 3,000 | ||
To Locker rent received | 2,000 | By Sports materials purchased | 4,000 | ||
By Balance c/d | |||||
Cash in hand | 2,000 | ||||
Cash at bank | 14,000 | 16,000 | |||
Total | 59,000 | Total | 59,000 |
Ans:
In the books of Kumbakonam Basket Ball Association
Income and Expenditure Account for the year ended 31st March 2019
Expenditure | Rs. | Income | Rs. |
---|---|---|---|
To Rent of ground paid | 12,000 | By Rent of hall received | 6,000 |
To Printing charges | 5,000 | By Subscription received | 9,000 |
To Bank charges | 1,000 | By Locker rent received | 2,000 |
To Insurance for building | 2,000 | By Deficit (Excess of expenditure over income) | 26,000 |
To Tournament expenses | 16,000 | ||
To Audit fees | 3,000 | ||
To Sports materials purchased | 4,000 | ||
Total | 43,000 | Total | 43,000 |
8. From the following receipts and payments account and the additional information given below, calculate the amount of subscription to be shown in Income and expenditure account for the year ending 31st December, 2018.
Receipts | Rs. | Rs. | Payments | Rs. | Rs. |
---|---|---|---|---|---|
To Subscription | |||||
2017 | 28,000 | ||||
2018 | 1,72,000 | ||||
2019 | 12,000 | 2,12,000 |
Additional information: Subscription outstanding for the year 2018 is Rs. 8,000.
Ans:
Income and expenditure account for the year ending 31st December, 2018
Expenditure | Rs. | Income | Rs. | |
---|---|---|---|---|
By Subscription | 1,72,000 | |||
Add : Subscription Outstanding | 8,000 | 1,80,000 |
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 | 10,000 | |||
2018-2019 | 50,000 | |||
2019-2020 | 5,000 | 65,000 |
There are 200 members in the club each paying an annual subscription of Rs. 400 per annum. Subscription still outstanding for the year 2017- 2018 is Rs. 2,000.
Ans:
Income and Expenditure Account for the year ended 31st March 2019
Expenditure | Rs. | Income | Rs. | Rs. |
---|---|---|---|---|
By Subscription | 50,000 | |||
Add: Subscription Outstanding (2018 – 2019) | 30,000 | 80,000 |
Balance Sheet as on 31st March 2019
Liabilities | Rs. | Assets | Rs. | |
---|---|---|---|---|
Subscription received in advance (2019 – 2020) | 5,000 | Outstanding Subscription | ||
2017 – 2018 | 2,000 | |||
2018 – 2019 | 30,000 | 32,000 |
10. How will the following items appear in the final accounts of a club for the year ending 31st March 2017? Received subscription of Rs. 40,000 during the year 2016-17. This includes subscription of Rs. 5,000 for 2015-16 and Rs. 3,000 for the year 2017-18. Subscription of Rs. 1,000 is still outstanding for the year 2016-17.
Ans:
Income and Expenditure Account for the year ended 31st March 2017
Expenditure | Rs. | Income | Rs. | |
---|---|---|---|---|
By Subscription | 40,000 | |||
Less: Subscription for the year 2015-16 | 5,000 | |||
35,000 | ||||
Less: Subscription for the year 2017-18 | 3,000 | |||
32,000 | ||||
Add: Outstanding Subscription for the year 2016 - 17 | 1,000 | 33,000 |
Balance Sheet as on 31st March 2017
Liabilities | Rs. | Assets | Rs. |
---|---|---|---|
Subscription received in advance (2017 – 2018) | 3,000 | Outstanding Subscription 2016 – 2017 | 1,000 |
11. Compute income from subscription for the year 2018 from the following particulars relating to a club.
Particulars | 1.1.2018 | 31.12.2018 |
---|---|---|
Outstanding subscription | 3,000 | 5,000 |
Subscription received in advance | 4,000 | 7,000 |
Subscription received during the year 2018: Rs. 45,000
Ans:
Income and Expenditure Account for the year ended 31st December 2019
Expenditure | Rs. | Income | Rs. | |
---|---|---|---|---|
By Subscription | 45,000 | |||
Less: Subscription for the year 31.12.2018 | 7,000 | |||
38,000 | ||||
Less: Outstanding Subscription in 1.1.2018 | 3,000 | |||
35,000 | ||||
Add: Subscription received in advance 01.01.2018 | 4,000 | |||
44,000 | ||||
Add: Outstanding Subscription for the year 31.12.2018 | 5,000 | 44,000 |
Balance Sheet as on 31st December 2018
Liabilities | Rs. | Asset | Rs. |
---|---|---|---|
Subscription received in advance 31.12.2018 | 7,000 | Outstanding Subscription 31.12.2018 | 5,000 |
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. 50,000 which includes Rs. 5,000 for 2017 and Rs. 7,000 for 2019. Subscription outstanding for the year 2018 is Rs. 6,000. Subscription of Rs. 4,000 was received in advance for 2018 in the year 2017.
Ans:
Income and Expenditure Account for the year ended 31st December 2018
Expenditure | Rs. | Income | Rs. | |
---|---|---|---|---|
By Subscription | 50,000 | |||
Less: Subscription for the year 2019 | 7,000 | |||
43,000 | ||||
Less: Outstanding Subscription in 2017 | 5,000 | |||
38,000 | ||||
Add: Subscription received in advance 2017 | 4,000 | |||
42,000 | ||||
Add: Outstanding Subscription for the year 2018 | 6,000 | 48,000 |
13. How the following items appear in the final accounts of Thoothukudi Young Pioneers Association?
There are one hundred members in the association each paying Rs. 25 as annual subscription. By the end of the year 10 members had not paid their subscription but four members had paid for the next year in advance.
Ans:
In the books of Thoothukudi Young Pioneers Association
Income and Expenditure Account for the year ended XXXX
Expenditure | Rs. | Income | Rs. |
---|---|---|---|
By Subscription | 2,500 |
Balance Sheet as on XXX
Liabilities | Rs. | Asset | Rs. |
---|---|---|---|
Subscription received in advance | 100 | Outstanding Subscription | 250 |
14. How will the following appear in the final accounts of Marthandam Women Cultural Association?
Particulars | Rs. |
---|---|
Stock of sports materials on 1.4.2018 | 16,000 |
Sports materials purchased during the year | 84,000 |
Stock of sports materials on 31.3.2019 | 10,000 |
Ans:
In the books of Marthandam Women Cultural Association
Income and Expenditure Account for the year ended 31st March 2019
Expenditure | Rs. | Rs. | Income | Rs. |
---|---|---|---|---|
To Opening Stock | 16,000 | |||
Add : Purchase | 84,000 | |||
1,00,000 | ||||
Less : Closing Stock | 10,000 | 90,000 |
Balance Sheet as on 31st March 2019
Liabilities | Rs. | Asset | Rs. |
---|---|---|---|
Closing Stock | 10,000 |
15. How will the following appear in the final accounts of Vedaranyam Sports club?
Particulars | Rs. |
---|---|
Opening stock of bats and balls | 3,000 |
Purchase of bats and balls during the year | 17,000 |
Sale of old bats and balls | 2,000 |
Closing stock of bats and balls | 4,000 |
Ans:
In the books of Vedaranyam Sports club
Income and Expenditure Account for the year ended 31st March 2019
Expenditure | Rs. | Rs. | Income | Rs. |
---|---|---|---|---|
To Opening Stock | 3,000 | Sale of old bats and balls | 2,000 | |
Add : Purchase | 17,000 | |||
20,000 | ||||
Less : Closing Stock | 4,000 | 16,000 |
Balance Sheet as on 31st March 2019
Liabilities | Rs. | Assets | Rs. |
---|---|---|---|
Closing Stock | 4,000 |
16. Show how the following items appear in the income and expenditure account of Sirkazhi Singers Association?
Particulars | Rs. |
---|---|
Stock of stationery on 1.4.2018 | 2,600 |
Purchase of stationery during the year | 6,500 |
Stock of stationery on 31.3.2019 | 2,200 |
Ans:
In the books of Sirkazhi Singers Association
Income and Expenditure Account for the year ended 31st March 2019
Expenditure | Rs. | Rs. | Income | Rs. |
---|---|---|---|---|
To Opening Stock | 2,600 | |||
Add : Purchase | 6,500 | |||
9,100 | ||||
Less : Closing Stock | 2,200 | 6,900 |
17. Chennai tennis club had Match fund showing credit balance of Rs. 24,000 on 1st April, 2018. Receipt to the fund during the year was Rs. 26,000. Match expenses incurred during the year was Rs. 33,000. How these items will appear in the final accounts of the club for the year ended 31st March, 2019?
Ans:
In the books of Chennai Tennis Club
Balance Sheet as on 31st March 2019
Liabilities | Rs. | Rs. | Asset | Rs. |
---|---|---|---|---|
Match Fund on 01-04-2018 | 24,000 | |||
Add : Receipt to the fund during the year | 26,000 | |||
50,000 | ||||
Less : Match expenses during the year | 33,000 | 17,000 |
18. How will the following appear in the final accounts of Karaikudi sports club for the year ending 31st March, 2019?
Particulars | Rs. |
---|---|
Tournament fund on 1st April 2018 | 90,000 |
Tournament fund investment on 1st April 2018 | 90,000 |
Interest received on tournament fund investment | 9,000 |
Donation to tournament fund | 10,000 |
Tournament expenses | 60,000 |
Ans:
In the books of Vedaranyam Sports club
Balance Sheet as on 31st March 2019
Liabilities | Rs. | Rs. | Asset | Rs. |
---|---|---|---|---|
Tournament fund on 01-04-2018 | 90,000 | Tournament fund investment | 90,000 | |
Add : Interest received on tournament fund investment | 9,000 | |||
10,000 | ||||
Add : Donation to tournament fund | 109,000 | |||
Less : Match expenses during the year | 60,000 | 49,000 |
19. Compute capital fund of Salem Sports Club as on 1.4.2019.
Particulars | Rs. | Particulars | Rs. |
---|---|---|---|
Sports equipment | 30,000 | Prize fund | 10,000 |
Computer | 25,000 | Prize fund investments | 10,000 |
Subscription outstanding for 2018-19 | 5,000 | Cash in hand | 7,000 |
Subscription received in advance for 2019-20 | 8,000 | Cash at bank | 21,000 |
Ans:
In the books of Salem Sports Club
Balance Sheet as on 31st March 2019
Liabilities | Rs. | Asset | Rs. |
---|---|---|---|
Capital fund | 80,000 | Cash in hand | 7,000 |
Prize fund | 10,000 | Cash at bank | 21,000 |
Subscription received in advance for 2019 - 20 | 8,000 | Sports equipment | 30,000 |
Computer | 25,000 | ||
Subscription outstanding for 2018-19 | 5,000 | ||
Prize fund investments | 10,000 | ||
Total | 98,000 | Total | 98,000 |
20. From the following Receipts and Payment account and from the information given below of Ramanathapuram Sports Club, prepare Income and Expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.
Receipts and Payments Account for the year ended 31st December, 2018
Receipts | Rs. | Rs. | Payments | Rs. | Rs. |
---|---|---|---|---|---|
To Balance b/d | By Rent | 11,000 | |||
Cash in hand | 5,000 | By Entertainment expenses | 11,200 | ||
Cash at bank | 10,000 | 15,000 | By Furniture | 10,000 | |
To Subscription | By Sports materials purchased | 13,000 | |||
2017 | 12,000 | By Match expenses | 12,000 | ||
2018 | 33,000 | By Investments made | 28,000 | ||
2019 | 16,000 | 61,000 | By Balance c/d | ||
To Entrance fees | 6,000 | Cash in hand | 1,300 | ||
To General donations | 7,000 | Cash at bank | 4,000 | 5,300 | |
To Sale of old sports materials | 1,000 | ||||
To Miscellaneous receipts | 500 | ||||
Total | 90,500 | Total | 90,500 |
Additional information:
(i) Capital fund as on 1st January 2018 Rs. 30,000.
(ii) Opening stock of sports material Rs. 3,000 and closing stock of sports material Rs. 5,000.
Ans:
In the books of Ramanathapuram Sports Club
Income and Expenditure Account for the year ended 31st December, 2018
Expenditure | Rs. | Rs. | Income | Rs. |
---|---|---|---|---|
To opening stock | 3,000 | By Subscription | 33,000 | |
Add : Sports materials Purchased | 13,000 | By Entrance fees | 6,000 | |
16,000 | By General donations | 7,000 | ||
Less : closing stock | 5,000 | 11,000 | By Sale of old sports materials | 1,000 |
To Rent | 11,000 | By Miscellaneous receipts | 500 | |
To Match expenses | 12,000 | |||
To Entertainment Expenses | 11,200 | |||
To Surplus (Excess of income over expenditure) | 2,300 | |||
Total | 47,500 | Total | 47,500 |
Balance Sheet as on 31st December, 2018
Liabilities | Rs. | Rs. | Asset | Rs. |
---|---|---|---|---|
Capital fund | 30,000 | Cash in hand | 1,300 | |
Add : Surplus | 2,300 | 32,300 | Cash at bank | 4,000 |
Subscription received in advance for 2019 | 16,000 | Furniture | 10,000 | |
Total | Investments made | 28,000 | ||
Closing stock Sports materials | 5,000 | |||
Total | 48,300 | Total | 48,300 |
21. From the following Receipts and Payment account of Yercaud Youth Association, prepare Income and expenditure account for the year ended 31st March, 2019 and the balance sheet as on that date.
Receipts and Payments Account for the year ended 31st March, 2019
Receipts | Rs. | Payments | Rs. |
---|---|---|---|
To Balance b/d | By Salary | 14,000 | |
Cash in hand | 9,600 | By Office expenses | 7,200 |
To Government grants for purchase of books | 10,000 | By Books purchased | 15,000 |
By Stationery purchased | 1,800 | ||
To Subscription | 24,800 | By Newspaper purchased | 2,100 |
To Admission fees | 2,000 | By Prizes awarded | 5,000 |
To Prize fund receipts | 6,000 | By Balance c/d | |
To Bank interest | 1,500 | Cash in hand | 9,900 |
To Sale of newspapers | 1,100 | ||
Total | 55,000 | Total | 55,000 |
Additional information:
(i) Opening capital fund Rs. 20,000.
(ii) Stock of books on 1.4.2018 Rs. 9,200.
(iii) Subscription due but not received Rs. 1,700.
(iv) Stock of stationery on 1.4.2018 Rs. 1,200 and stock of stationery on 31.3.2019, Rs. 2,000
Ans:
In the Books of Yercaud Youth Association
Income and Expenditure a/c for the year ended 31st March, 2019
Expenditure | Rs. | Rs. | Income | Rs. | Rs. |
---|---|---|---|---|---|
To Salary | 14,000 | By Subscription | 24,800 | ||
To Office Expenses | 7,200 | Add : Due – not received | 1,700 | 26,500 | |
To Stock of Stationery | By Admission Fees | 2,000 | |||
Opening Stock | 1,200 | By Bank Interest | 1,500 | ||
Add: Purchase | 1,800 | By Sale of news paper | 1,100 | ||
3,000 | |||||
Less : Closing Stock | 2,000 | 1,000 | |||
To Newspaper purchased | 2,100 | ||||
To Surplus | 6,800 | ||||
[Excess of Income over Expenditure] | |||||
Total | 31,100 | Total | 31,100 |
Balance Sheet for the year ended 31st March, 2019
Liabilities | Rs. | Rs. | Assets | Rs. | |
---|---|---|---|---|---|
Capital Fund | 20,000 | Closing Stock of Stationery | 2,000 | ||
Add : Surplus | 6,800 | 26,800 | Subscription Due | 1,700 | |
Government Grants for Books | 10,000 | Opening Stock of Books | 9,200 | ||
Prize fund receipts | 6000 | Add : Purchased | 15,000 | 24,200 | |
Less: Prize awarded | 5000 | 1000 | Cash – in – hand | 9,900 | |
Total | 37,800 | Total | 37,800 |
22. Following is the Receipts and Payments account of Neyveli Science Club for the year ended 31st December, 2018.
Receipts and Payments Account for the year ended 31st December, 2018
Receipts | Rs. | Payments | Rs. | Rs. |
---|---|---|---|---|
To Balance b/d | By Balance b/d | |||
Cash in hand | 2,400 | Bank overdraft | 1,000 | |
To Subscription | 8,700 | By Postage expenses | 200 | |
To Life membership fees | 5,000 | By Science equipments purchased | 10,000 | |
To Exhibition fund receipts | 7,000 | By Laboratory expenses | 2,400 | |
To Sale of science equipments | 6,000 | By Secretary’s honorarium | 5,000 | |
(Book value Rs. 5,000) | By Audit fees | 3,600 | ||
To Miscellaneous income | 500 | By General charges | 1,800 | |
By Exhibition expenses | 5,000 | |||
By Balance c/d | ||||
Cash in hand | 200 | |||
Cash at bank | 400 | 600 | ||
Total | 29,600 | Total | 29,600 |
Additional information:
(i) Opening capital fund Rs. 6,400
(ii) Subscription includes Rs. 600 for the year 2019
(iii) Science equipment as on 1.1.2018 Rs. 5,000
(iv) Surplus on account of exhibition should be kept in reserve for new auditorium.
Prepare income and expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.
Ans:
In the books of Neyveli Sceince Club
Income and Expending Accounting for the year ended, 31st December, 2018
Expenditure | Rs. | Income | Rs. | Rs. |
---|---|---|---|---|
To Postage expenses | 200 | By Subscription | 8,700 | |
To Laboratory expenses | 2,400 | Less : Subscription for 2019 | 600 | 8,100 |
To Secretary’s honorium | 5,000 | By Sale of Science equipments | 6,000 | |
To Audit fees | 3,600 | Less : book value | 5,000 | 1,000 |
To General charges | 1,800 | By Miscellaneous income | 5,00 | |
By Deficit (Excess of expenditure over income) | 3,400 | |||
Total | 13,000 | Total | 13,000 |
Balance Sheet as on 31st December, 2018
Liabilities | Rs. | Rs. | Assets | Rs. | |
---|---|---|---|---|---|
Capital fund | 6,400 | Science equipment’s | 10,000 | ||
Add: Opening stock | 5,000 | ||||
Less : Deficit | 3,400 | 3,000 | Less: Sale of equipment | 5,000 | 10,000 |
Life Membership fees | 5,000 | Cash in hand | 200 | ||
Subscription received in advance for 2019 | 600 | Cash at bank | 400 | ||
Exhibition fund receipts | 7,000 | ||||
Less: Exhibition expenses | 5,000 | 2,000 | |||
Total | 10,600 | Total | 10,600 |
23. From the following Receipts and Payments account of Sivakasi Pensioner’s Recreation Club, prepare income and expenditure account for the year ended 31st March, 2018 and the balance sheet as on that date.
Receipts and Payments Account for the year ended 31st March, 2018
Receipts | Rs. | Rs. | Payments | Rs. |
---|---|---|---|---|
To balance b/d | By Rent and rates | 18,000 | ||
Cash in hand | 10,000 | By Electricity charges | 17,000 | |
Cash at bank | 20,000 | 30,000 | By Furniture purchased | 12,000 |
To Subscription | By Billiards table purchased | 70,000 | ||
2016 – 2017 | 5,000 | By Repairs and renewals | 16,000 | |
2017 – 2018 | 25,000 | By Special dinner expenses | 4,000 | |
2018 – 2019 | 6,000 | 36,000 | By Sundry expenses | 2,000 |
To Legacies | 40,000 | By Balance c/d | ||
To Rent from hall | 14,000 | Cash in hand | 1,000 |
|
To Lockers rent | 5,000 | |||
To Collection for special dinner | 12,000 | |||
To Balance c/d | ||||
Bank overdraft | 3,000 | |||
Total | 1,40,000 | Total | 1,40,000 |
Additional information:
(i) The club had 300 members each paying Rs. 100 as annual subscription.
(ii) The club had furniture Rs. 10,000 on 1.4.2017.
(iii) The subscription still due but not received for the year 2016 – 2017 is Rs. 1,000.
Ans:
In the books of Sivakasi Pensioner’s Recreation Club
Balance Sheet as on 1st April, 2018
Liabilities | Rs. | Assets | Rs. |
---|---|---|---|
Capital Fund | 46,000 | Furniture | 10,000 |
(Balancing Figure) | 46,000 | Cash in hand | 10,000 |
Cash at bank | 20,000 | ||
Subscription outstanding 2016-2017 | 1,000 | ||
Subscription outstanding 2017 - 2018 | 5,000 | ||
Total | 46,000 | Total | 46,000 |
Income and Expenditure Account for the year ended 31st December, 2018
Expenditure | Rs. | Income | Rs. | Rs. |
---|---|---|---|---|
To Rent and rates | 18,000 | By Subscription for 2018-2019 | 25,000 | |
To Electricity charges | 17,000 | Add : Subscription outstanding | 5,000 | 30,000 |
To Repairs and renewal | 16,000 | By Rent from hall | 14,000 | |
To Special dinner expenses | 4,000 | By Lockers rent | 5,000 | |
To Sundry Expenses | 2,000 | By Collection for special dinner | 12,000 | |
To Surplus (Excess of income over expenditure) | 4,000 | |||
Total | 61,000 | Total | 61,000 |
Balance Sheet as on 31st March, 2018
Liabilites | Rs. | Rs. | Assets | Rs. | Rs. |
---|---|---|---|---|---|
Capital fund | 46,000 | Furniture | 10,000 | ||
Add : Surplus | 4,000 | 50,000 | Add : Furniture purchased | 12,000 | 22,000 |
Subscription received in advance for 2019 | 6,000 | By Billiards table purchased | 70,000 | ||
Legacies | 40,000 | Cash | 1,000 | ||
Bank Overdraft | 3,000 | Subscription outstanding 2016 - 2017 | 1,000 | ||
Subscription outstanding 2018 - 2019 | 5,000 | ||||
Total | 99,000 | Total | 99,000 |
24. Following is the Receipts and payments account of Virudhunagar Volleyball Association for the year ended 31st December, 2018.
Receipts and Payments Account for the year ended 31st December, 2018
Receipts | Rs. | Rs. | Payments | Rs. | Rs. |
---|---|---|---|---|---|
To balance b/d | By Match expenses | 25,000 | |||
Cash in hand | 5,000 | By Upkeep of pavilion | 17,000 | ||
To Subscription | By Secretary’s honorarium | 18,000 | |||
2017 | 10,000 | By Bats and balls purchased | 22,000 | ||
2018 | 55,000 | By Grass seeds | 2,000 | ||
2019 | 5,000 | 70,000 | By Fixed deposit | 58,000 | |
To Donations | 40,000 | By Sundry expenses | 3,000 | ||
To Match fund receipts | 30,000 | By Balance c/d | |||
To Interest on fixed deposit | 8,000 | Cash in hand | 7,000 | ||
To Miscellaneous receipts | 5,000 | Cash at bank | 6,000 | 13,000 | |
Total | 1,58,000 | Total | 1,58,000 |
Additional information:
(i) On 1.1.2018, the association owned investments Rs. 10,000, premises and grounds Rs. 40,000, stock of bats and balls Rs. 5,000.
(ii) Subscription Rs. 5,000 related to 2017 is still due.
(iii) Subscription due for the year 2018, Rs. 6,000.
Prepare income and expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.
Ans:
In the books of Virudhunagar Volleyball Association
Balance Sheet as on 1st January, 2018
Liabilities | Rs. | Assets | Rs. |
---|---|---|---|
Capital Fund | 75,000 | Investment | 10,000 |
(Balancing Figure) | Premises and Grounds | 40,000 | |
Stock of bats and balls | 5,000 | ||
Subscription outstanding 2017 | 5,000 | ||
Subscription received 2017 | 10,000 | ||
Cash in hand | 5,000 | ||
Total | 75,000 | Total | 75,000 |
Income and Expenditure Accounting for the year ended, 31st December, 2018
Expenditure | Rs. | Rs. | Income | Rs. | Rs. |
---|---|---|---|---|---|
To Opening stock | 5,000 | By Subscription for 2018 | 55,000 | ||
Add : Purchase of bats | 22,000 | 27,000 | Add : Subscription outstanding | 6,000 | 61,000 |
To Match Expenses | 25,000 | By Donations | 40,000 | ||
To Upkeep of pavilion | 17,000 | By Match fund receipts | 30,000 | ||
To Secretary’s honorarium | 18,000 | By Interest on fixed deposit | 8,000 | ||
To Grass seeds | 2,000 | By Miscellaneous receipts | 5,000 | ||
To Sundry expenses | 3,000 | ||||
To Surplus (Excess of income under expenditure) | 52,000 | ||||
Total | 1,44,000 | Total | 1,44,000 |
Balance Sheet as on 31st Dec, 2018
Liabilities | Rs. | Rs. | Assets | Rs. |
---|---|---|---|---|
Capital fund | 75,000 | Fixed deposit | 58,000 | |
Add : Surplus | 52,000 | 1,27,00 | Cash in hand | 7,000 |
Subscription received in advance for 2019 | 5,000 | Cash at bank | 6,000 | |
Investment | 10,000 | |||
Premise and Grounds | 40,000 | |||
Subscription outstanding 2018 | 6,000 | |||
Subscription outstanding 2017 | 5,000 | |||
Total | 1,32,000 | Total | 1,32,000 |
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