NON PROFIT ORGANISATION ACCOUNTS

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NON PROFIT ORGANISATION ACCOUNTS

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21. Subscription received during the year ended 31^st December, 2018 by Sarvodaya Club were as under:

2017 Rs. 3, 000

2018 Rs. 93, 000

2019 Rs. 2, 000

The club has 500 members each paying Rs, 200 as annual Subscription. Subscription outstanding as on 31^st December, 2017 are Rs. 6, 000. Calculate the amount of subscription to be shown in Income and Expenditure A/c and show the relevant data in the Balance Sheet as on 31^st December, 2018.

Answer:

In the book of Sarvodaya Club

Income and Expenditure Account (an extract)

for the year ended 31^st December, 2018

Dr. Cr.

Expenditure	Amount (Rs.)	Income	Amount(Rs.)
		By Subscription Received For current year 93, 000 Add : O/s for current year 7, 000	1, 00, 000

Balance Sheet (an extract)

As at 31^st December, 2018

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Subscription Received in advance for 2019	2, 000		10, 000

NON PROFIT ORGANISATION ACCOUNTS

22. From the following Particulars of Glorious Club, prepare Receipts and Payments Account for the year ended 31^st March, 2019:

Particular	Amount (Rs.)
Opening balance of cash	16, 000
Subscriptions (including Rs. 13, 000 for 2017-18)	93, 000
Investment purchased	35, 000
Maintenance expenses	15, 000
Locker rent	40, 000
Life membership fees	85, 000
Insurance premium	6, 000

Ans.

Receipts and Payment Account of Glorious Club

for the year ending 31^st March ,2019

Dr. Cr.

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
To Balance b/d	16, 000	By Investments	35, 000
To Subscription (Including Rs. 13, 000 for 2017-18)	93, 000	By Insurance Premium	6, 000
To Locker rent	40, 000	By Maintenance Expenses	15, 000
To Life membership fees	85, 000	By Balance c/d	1, 78, 000
	2, 34, 000		2, 34, 000

23. From the given Receipts and Payments Account and additional information of Shine Club for the year ended 31^st March, 2019, prepare Income and Expenditure Account Of the year ended 31^st March, 2019:

Receipts and Payments Account of Shine Club

for the year ended 31^st March, 2019

Dr. Cr.

Receipts	Amount(Rs.)	Payments	Amount (Rs.)
To Balance b/d	50, 000	By furniture & Equipment	1, 22,000
To Donations	45, 000	By Salaries	32, 000
To Subscriptions 2017-18 1, 600 2018-19 60, 000 2019-20 5, 000	66, 600	By Balance c/d	13, 400
To Interest received	5, 800
	1, 67, 400		1, 67, 400

NON PROFIT ORGANISATION ACCOUNTS

Additional Information

Furniture and equipment were purchased on 1-10-2018. Depreciation @ 10% p.a. was to be provided on furniture and equipment.
Subscription in arrears for the year 2018-19 were Rs. 2, 000.
Outstanding salary Rs. 6, 000.

Ans.

In the Books of Shine Club

Income and Expenditure Account for the year ending 31^st March, 2019

Dr. Cr.

Expenditure	Amount (Rs.)	Income	Amount(Rs.)
To Depreciation on furniture and equipment	6, 100	By Subscription 60, 000 Add : Subscriptions outstanding 2, 000	62, 000
To Salary 32, 000 Add : Outstanding Salary 6, 000	38, 000	By Donations	45, 000
To Surplus : Excess of Income over Expenditure	68,700	By Interest	5, 800
1, 12, 800	1, 12, 800

NON PROFIT ORGANISATION ACCOUNTS

24. From the following Receipts and Payments Account of Shyam Music Club for the year ended 31^st March, 2019 and additional information, prepare Income and Expenditure Account for the year ended 31. 3. 2019:

Receipts and Payments Account of Shyam Music Club for the year ended 31.3.2019

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
To Balance b/d : Cash 10, 000 Bank 15, 000	25, 000	By Honorarium	71, 000
To Subscription 2017-18 13, 000 2018-19 2, 00, 000 2019-20 17, 000	2, 30, 000	By Musical Instruments	40, 000
To Locker Rent	8, 000	By Electricity Bill	31, 000
To Sale of old Furniture (book value Rs. 10, 000)	15, 000	By Balance c/d Cash 50, 000 Bank 40, 000 Fixed Deposit@ 7% p.a on 31.3.2019) 1, 15, 000	2, 05, 500
To Building Fund Donations	45, 000
To Life Membership Fee	19, 500
To Administration Fee	5, 000
	3, 47, 500		3, 47, 500

NON PROFIT ORGANISATION ACCOUNTS

Additional Information:

The Club had 225 members each paying an annual subscription of Rs. 1, 000
Musical instruments were purchased on 1. 10. 2018. Depreciation @ 15 % p.a. was to be charged on musical instruments.

Ans.

Income and Expenditure Account for the year ending 31^st March, 2019

Dr. Cr.

Expenditure	₹	Income	₹
To depreciation of musical instruments	3,000	By Subscriptions 2,00,000 Add: Subscriptions outstanding 25,000	2,25,000
To Honorarium	71,000	By Locker rent	8,000
To Electricity bill	31,000	By Gain on sale of old furniture	5,000
To excess of income over expenditure (Surplus)	1,38,000	By admission fee	5,000
	2,43,000		2,43,000

NON PROFIT ORGANISATION ACCOUNTS

Depreciation on musical instrument: 15% of 40,000 * ½= 3,000

Outstanding subscription: Total subscription to be paid- Subscription actually paid= (225*100)-(2,00,000)= 25,000

Gain on the sale of old furniture: 15,000-10,000= 5,000.

25. From the following information of Gems Club, prepare Income and Expenditure account for the year ended 31^st March, 2018.

Receipts and Payments account of Gems Club for the year ending 31^st March, 2018.

Dr. Cr.

Receipts	₹	Payments	₹
To balance b/d	50,000	By furniture	1,30,000
To Interest on Investments	2,400	By salaries	64,500
To Donations	17,000	By miscellaneous expenses	52,000
To Subscriptions	3,00,000	By telephone charges	12,000
To Rent Received	70,000	By fax machine	6,000
To sale of old newspapers	600	By 6% Investments (on 01.08.2017)	1,00,000
		By printing and stationery	19,000
		By balance c/d	56,500
	4,40,000		4,40,000

NON PROFIT ORGANISATION ACCOUNTS

Additional Information:

Subscriptions received included ₹15,000 for 2018-19. The amount of subscriptions outstanding on 31^st March, 2018 were ₹20,000. Salaries unpaid on 31^st March, 2018 were ₹8,000 and rent receivable was 2,000. Opening stock of printing and stationery was ₹12,000, whereas closing stock was ₹15,000.

Answer:

Income and Expenditure Account of Gems Club for the year ended 31^st March, 2018.

Dr. Cr.

Expenditure	₹	Income	₹
To salaries 64,500 Add: Outstanding 8,000	72,500	By Subscription= 3,00,000 Less: Advance= (15,000) Add: Outstanding subscription= 20,000	3,05,000
To Miscellaneous expenses	52,000	By Interest on Investment= 2,400 Add: Accrued Interest= 1,600	4,000
To telephone charges	12,000	By Donations	17,000
To printing and stationery Opening stock= 12,000 Add: Purchases= 19,000 Less: Closing stock= (15,000)	16,000	By rent received= 70,000 Add: Receivable= 2,000	72,000
To surplus	2,46,100	By sale of old newspapers	600
	3,98,600		3,98,600

NON PROFIT ORGANISATION ACCOUNTS

26. From the following receipts and payments account of Krish fitness and wellness club for the year ended 31^st March, 2020, prepare the Income and Expenditure Account:

Receipts and Payments account for the year ending 31^st March, 2020

Dr. Cr.

Receipts	₹	Payments	₹
To balance c/d	85,000	By doctors and coach’s honorarium	25,000
To Subscription	68,500	By medicines	15,500
To entrance fees	25,000	By medical equipment	30,000
To life membership fees	30,000	By general expenses	8,000
To donation for tournament fund	20,000	By furniture	20,000
To sale of old medical equipment (Book value ₹15,000)	5,000	By newspapers	8,000
To miscellaneous receipts	15,000	By rent, rates and taxes	5,000
		By Tournament expenses	60,000
		By balance c/d	77,000
	2,48,500		2,48,500

NON PROFIT ORGANISATION ACCOUNTS

Additional information:

Following opening balances appeared in the books on 1^st April, 2019:

Tournament fund ₹15,000.
Medical Equipment ₹1,50,000.
Outstanding subscription was 8,000 and advance subscription ₹5,000 (for 2019-20).

During the year 2019-20, depreciation on medical equipment was ₹25,000

There were 600 members each paying an annual subscription of ₹100.

Answer:

In the books of Krish fitness and wellness club

Income and expenditure Account for the year ending 31^st March, 2019.

Dr. Cr.

Expenditure	₹	Income	₹
To loss on sale of medical equipment	10,000	By subscriptions	60,000
To doctor and coach’s honorarium	25,000	By entrance fees	25,000
To medicine consumed	15,500	By miscellaneous receipts	15,000
To depreciation on medical equipment	25,000	By deficit	21,500
To general expenses	8,000
To newspapers	8,000
To rent, rates and taxes	5,000
To tournament expenses	25,000
	1,21,500		1,21,500

NON PROFIT ORGANISATION ACCOUNTS

Working Note

Calculation of tournament expenses= Tournament expenses- Donation for tournament fund- Tournament fund

60,000-20,000-15,000= 25,000

Calculation of loss on sale of medical equipment= 15,000-5,000= 10,000

27. Receipts and Payments Account of Ganesh Sports club is given below, for the year ended 31^st December, 2016.

Receipts and Payments Account for the year ending on 31^st December, 2016

Dr. Cr.

Receipts	₹	Payments	₹
To cash in hand (balance b/d)	36,000	By rent	1,80,000
To entrance fees	32,000	By wages	70,000
To donation for building	2,30,000	By billiard table	2,50,000
To locker rent	12,000	By furniture	1,00,000
To life membership fees	70,000	By electricity charges	20,000
To profit from entertainment	30,000	By postage	10,000
To subscription	5,00,000	By salary	2,40,000
		By cash in hand (balance c/d)	40,000
	9,10,000		9,10,000

Prepare Income and Expenditure Account and balance sheet with the help of the following information:

Subscription outstanding on 31^st December, 2015 is ₹12,000 and ₹23,000 on 31.12.2016.
Opening stock of postage stamps is ₹3,000 and closing stock is ₹2,000.
On 1^st January, 2016 the club owned furniture ₹2,00,000, Furniture valued ₹2,25,000 on 31.12.2016.
The club took a loan of ₹2,00,000 @10% p.a. in 2015.

Answer:

In the books of Ganesh Sports Club

Income and Expenditure Account for the year ending 31^st December, 2016

Dr. Cr.

Expenditure	₹	Income	₹
To Rent	1,80,000	By entrance fee	32,000
To wages	70,000	By locker rent	12,000
To depreciation on furniture	75,000	By profit from entertainment	30,000
To postage (10,000+3,000-2,000)	11,000	By subscriptions (5,00,000+23,000- 12,000)	5,11,000
To electricity charges	20,000	By deficit (balancing figure)	31,000
To salary	2,40,000
To interest outstanding on loan	20,000
	6,16,000		6,16,000

NON PROFIT ORGANISATION ACCOUNTS

Balance Sheet as at 31^st December, 2015

Liabilities	₹	Assets	₹
Loan	2,00,000	Cash	36,000
Capital (Balancing figure)	51,000	Outstanding subscription	12,000
		Furniture	2,00,000
		Postage stamp stock	3,000
	2,51,000		2,51,000

Balance sheet as at 31^st December, 2016

Liabilities	₹	Assets	₹
Loan		Cash	40,000
Interest on Loan		Outstanding subscription	23,000
Donation		Furniture	2,25,000
Capital fund= 51,000 Less: Deficit = 31,000 Add: Life membership fees= 70,000	90,000	Postage stamp stock	2,000
		Billiards table	2,50,000
	5,40,000		5,40,000

NON PROFIT ORGANISATION ACCOUNTS

28. From the following information o9fo Receipts and Payments account, prepare an Income and Expenditure Account of Royal club for the year ending 31^st December, 2018

Receipts and Payments Account for the year ended 31^st December, 2018

Dr. Cr.

Receipts	₹	Payments	₹
To Balance b/d	1,500	By Salaries	1,900
To Subscriptions 2017= 200 2018= 2,000 2019=250	2,450	By general expenses	800
To Entrance fees	650	By Books purchase (1.7.2018)	800
To Donations	1,200	By electric charges	200
To Life membership fees	1,500	By Balance c/d	3,850
To sale of newspapers	100
To Rent	150
	7,550		7,550

NON PROFIT ORGANISATION ACCOUNTS

Additional Information

The club has 50 members each paying an annual subscription of ₹50.
On 31^st December, 2018 salaries outstanding was ₹150 and salaries paid during 2018 also included ₹100 for the year 2017.
On 31^st December, 2017 the club had land and building ₹10,000, furniture ₹3,500 and books ₹1,500.
Provide depreciation on the furniture and books @10% p.a.

Answer:

In the books of Royal Club

Income and Expenditure Account for the year ended on 31^st December, 2018

Dr. Cr.

Expenditure	₹	Income	₹
To Salaries= 1,900 Add: Outstanding for 2018= 150 Less: For 2017= 100	1,950	By subscriptions	2,500
To Depreciation on: Furniture= 350 Books= 190	540	By entrance fees	650
To General Expenses	800	By donations	1,200
To Electric charges	200	By sale of newspapers	100
To surplus (balancing figure)	1,110	By rent	150
	4,600		4,600

NON PROFIT ORGANISATION ACCOUNTS

Working notes

Depreciation @ 10% on ₹1,500 (for 12 months)= ₹150

Depreciation @10% on ₹800 (for 6 months)= ₹40

Total depreciation= ₹190

29. The following is the Receipts and Payments account of Queen’s club for the year ended March 31^st, 2018:

Receipts	₹	Payments	₹
To balance b/d	1,82,000	By Salaries	1,66,000
To Subscriptions	1,80,000	By stationery	32,000
To Tournament Fund	1,64,000	By rent	48,000
To Interest (Investments)	65,000	By telephone expenses	8,000
To Donations	1,12,000	By sports materials and expenses	78,000
To sale concert tickets	2,47,000	By Investment @6%p.a.	5,00,000
		By miscellaneous expenses	24,000
		By concert expenses	58,000
		By Balance c/d	36,000
	9,50,000		9,50,000

Additional Information:

Subscriptions include ₹12,000 for 2016-17 and ₹18,000 for 2018-19.
Stock of sports material at the beginning and at the end of the year was ₹12,000 and ₹21,000 respectively.
Rent includes ₹4,000 paid for March 2017. Rent of ₹4,000 is outstanding for march, 2018.
Telephone expenses included ₹2,000 paid in advance for next year.
The value of investments on 31^st March 2017 was ₹10,00,000 and the club made similar additional investments during the year on 1^st October, 2017.

You are required to prepare the Income and Expenditure Account of the club for the year ended March 31^st, 2018.

Answer:

In the books of Queen’s club

Income and Expenditure Account for the year ending 31^st March, 2018

Dr. Cr.

Expenditure	₹	Income	₹
To miscellaneous expenses	24,000	By subscription received= 1,80,000 Less: Subscription for 2016-17= (12,000) Add: Subscription for 2018-19= 18,000	1,50,000
To salaries	1,66,000	By donations	1,12,000
To rent paid= 48,000 Add: Outstanding for March 2018= 4,000 Less: Outstanding for March 2017= (4,000)	48,000	By Interest on investment = 65,000 Add: Interest accrued on investment= 10,000	75,000
To stationery	32,000	By sale of concert tickets	2,47,000
To telephone expense= 8,000 Less: Prepaid expense= (2,000)	6,000
To sports materials= 78,000 Add: Opening stock= 12,000 Less: closing stock= (21,000)	69,000
To concert expenses	58,000
To surplus (balancing figure)	1,81,000
	5,84,000		5,84,000

NON PROFIT ORGANISATION ACCOUNTS

Working Note:

Interest on Investment:

6% on ₹10,00,000 = ₹60,000
6% on ₹5,00,000 for 6 months = ₹15,000

Total = ₹75,000

30. Following is the receipts and payments account of Chennai sports club for the year ended 31.12.2018:

Receipts	₹	Payments	₹
To balance b/d	5,000	By salary	12,000
To subscriptions	26,000	By furniture	10,000
To entrance fee	4,000	By office expenses	8,000
To tournament fund	15,000	By tournament expenses	21,000
To sale of old newspapers	2,000	By sports equipment	20,000
To legacy	35,000	By balance c/d	16,000
	87,000

NON PROFIT ORGANISATION ACCOUNTS

Other Information:

On 31.12.2018, subscriptions outstanding was ₹4,000 and on 31.12.2017, subscription outstanding was ₹3,000. Salary outstanding on 31.12.2018 was ₹2,000.
On 1.1.2018, the club has Building ₹80,000, furniture ₹20,000, 10% investment ₹45,000 and sports equipments ₹25,000. Depreciation charges on these items including purchases was 10%.

Prepare Income and Expenditure Account of the Club for the year ended 31.12.2018 and ascertain the Capital fund as on 32.12. 2017

Answer:

In the books of Chennai Sports Club

Income and Expenditure Account for the year ending 31^st December, 2018

Dr. Cr.

Expenditure	₹	Income	₹
To salary= 12,000 Add: Outstanding salary= 2,000	14,000	By subscriptions	27,000
To office expenses	8,000	By entrance fee	4,000
To tournament expenses (net)	6,000	By sale of old newspapers	2,000
To depreciation on building	8,000	By accrued interest	4,500
To depreciation on furniture (2000+1000)	3,000	By deficit (balancing figure)	6,000
To depreciation on sports equipments (2500+2000)	4,500
	43,500		43,500

NON PROFIT ORGANISATION ACCOUNTS

Balance sheet as at 31^st December, 2017

Liabilities	₹	Assets	₹
Capital fund (balancing figure)	1,78,000	Cash	5,000
		Subscriptions outstanding	3,000
		Buildings	80,000
		Furniture	20,000
		10% Investments	45,000
		Sports Equipment	25,000
	1,78,000		1,78,000

Working Note:

Salary = 12,000

Add: Outstanding = 2,000

Total =14,000

Subscriptions =26,000

Add: Outstanding =4,000

Less: Outstanding =(3,000)

Total =27,000

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NON PROFIT ORGANISATIONS ACCOUNTS CLASS 12 ; MCQs , NUMERICAL PROBLEMS

NON PROFIT ORGANISATION ACCOUNTS

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