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NON PROFIT ORGANISATION ACCOUNTS
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21. Subscription received during the year ended 31st 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 31st 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 31st December, 2018.
Answer:
In the book of Sarvodaya Club
Income and Expenditure Account (an extract)
for the year ended 31st 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 31st 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 31st 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 31st 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 31st March, 2019, prepare Income and Expenditure Account Of the year ended 31st March, 2019:
Receipts and Payments Account of Shine Club
for the year ended 31st 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 31st 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 31st 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 31st 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 31st March, 2018.
Receipts and Payments account of Gems Club for the year ending 31st 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 31st March, 2018 were ₹20,000. Salaries unpaid on 31st 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 31st 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 31st March, 2020, prepare the Income and Expenditure Account:
Receipts and Payments account for the year ending 31st 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 1st 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 31st 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 31st December, 2016.
Receipts and Payments Account for the year ending on 31st 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 31st 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 1st 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 31st 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 31st 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 31st 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 31st December, 2018
Receipts and Payments Account for the year ended 31st 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 31st December, 2018 salaries outstanding was ₹150 and salaries paid during 2018 also included ₹100 for the year 2017.
- On 31st 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 31st 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 31st, 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 31st March 2017 was ₹10,00,000 and the club made similar additional investments during the year on 1st October, 2017.
You are required to prepare the Income and Expenditure Account of the club for the year ended March 31st, 2018.
Answer:
In the books of Queen’s club
Income and Expenditure Account for the year ending 31st 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 31st 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 31st 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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