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प्रश्न
How will the following items be treated while preparing the financial statements of a not-for-profit organization for the year ended 31st March, 2019?
| As at 31-3-2018 (₹) | As at 31-3-2019 (₹) | |
| Creditors for medicines | 33,000 | 67,000 |
| Stock of medicines | 27,000 | 43,000 |
During 2018-19, the payment made to the creditors was ₹ 4,25,000.
उत्तर
In the books of ….
Income & Expenditure A/c
| Dr. | for the year ended 31st March, 2019 | Cr. | |
| Expenditure |
Amount (₹) |
Income | Amount (₹) |
| To Medicines consumed (WN 1) |
4,43,000 |
||
Balance Sheet as at 31st March, 2019
| Liabilities |
Amount (₹) |
Assets | Amount (₹) |
| Creditors for Medicines |
67,000 |
Stock of Medicines |
43,000 |
Working Notes:
(1)
| Dr. | Creditors for Medicines A/c | Cr. | |
| Particulars |
Amount (₹) |
Particulars | Amount (₹) |
| To Bank A/c |
4,25,000 |
By balance b/d | 33,000 |
| (Payment to creditors) |
|
By Stock of Medicines A/c | |
|
|
(Purchases made) (Bal. Fig.) | 4,59,000 | |
| To balance c/d |
67,000 |
||
|
4,92,000 |
4,92,000 | ||
)
| Dr. | Stock of Medicines A/c | Cr. | |
| Particulars |
Amount (₹) |
Particulars | Amount (₹) |
| To balance b/d |
27,000 |
By Income & Expenditure A/c | 4,43,000 |
|
|
(Bal. Fig.) | ||
| To Creditors for Medicines A/c |
4,59,000 |
By balance c/d | 43,000 |
|
4,86,000 |
4,86,000 | ||
APPEARS IN
संबंधित प्रश्न
From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2017.
Receipt and Payment Account for the year ending
as on December 31, 2017
| Receipts | Amount (Rs) | Payments | Amount (Rs) | |
| Balance b/d | General Expenses | 3,200 | ||
| Cash in hand | 4000 | News paper | 1850 | |
| Cash at Bank | 15550 | Electricity | 3000 | |
| Subscriptions | Fixed deposit with bank (on 31.06.2017) @ 10% p.a. |
18000 | ||
| 2016 | 1200 | 28200 | Books | 7000 |
| 2017 | 26500 | Salary | 3600 | |
| 2018 | 500 | Rent | 6500 | |
| Sale of old newspapers | 1250 | Postage charges | 300 | |
| Govt. grant | 12000 | Furniture (purchased) | 10500 | |
| Sale of old furniture (book value Rs 5, 000) | 3700 | Balance c/d | ||
| Interest received on FD | 450 | Cash in Hand | 3000 | |
| Cash at Bank | 8200 | |||
| 65150 | 65150 | |||
Information:
- Subscription outstanding as on 31.12. 2016 Rs 2,000 and on December 31, 2017 Rs 1,500.
- On December 31, 2017 Salary outstanding Rs 600, and one month rent paid in advance.
- On Jan. 01, 2016 organization owned Furniture Rs 12,000, Books Rs 5,000.
The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017:
| Receipts | Amount (Rs) | Payments | Amount (Rs) |
| Balance from last year | 2270 | Rent | 6600 |
| Subscriptions | 32500 | Electric charges | 3,200 |
| Life membership fee | 3250 | Lecturer’s fee | 730 |
| Donation | 2500 | Office expenses | 1,480 |
| Profit from entertainment | 7250 | Printing and Stationery | 1,050 |
| Sale of old Books (books value Rs 1,000) | 750 | Legal fee | 1,870 |
| Interest | 350 | Books | 6,500 |
|
Furniture purchased |
8,600 | ||
| Expenses on nukar drama | 1,300 | ||
| Cash in hand | 8040 | ||
| Cash at bank | 9500 | ||
| 48870 | 48870 |
You are required to prepare an Income and Expenditure Account after the following adjustments:
(a) Subscription still to be received are Rs 750, but subscription include Rs 500 for the year 2018.
(b) In the beginning of the year the Sangh owned building Rs 20,000 and furniture Rs 3,000 and Books Rs 2,000.
(c) Provide depreciation on furniture @ 5% (including purchase), books @ 10% and building @ 5%.
How are the following items of subscriptions shown in the Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheets as at 31st March, 2018 and 2019?
| ₹ | |
| Subscriptions received during the year ended 31st March, 2019 | 358,500 |
| Subscriptions outstanding on 31st March, 2018 | 30,000 |
| Subscriptions received in Advance on 31st March, 2018 | 22,500 |
| Subscriptions received in Advance on 31st March, 2019 | 13,500 |
| Subscriptions outstanding on 31st March, 2019 | 37,500 |
| (including ₹ 12,500 for the year ended 31st March, 2018) |
The book value of furniture on 1st April, 2018 is ₹ 60,000. Half of this furniture is sold for ₹ 20,000 on 30th September, 2018. Depreciation is to be charged on furniture @ 10% p.a.
Calculate loss on sale of furniture. Show how the loss on sale and depreciation on furniture will be shown in the Income and Expenditure Account for the year ended 31st March, 2019.
How are the following items dealt with while preparing Income and Expenditure Account of a club for the year ended 31st March, 2019?
| 1st April, 2018 (₹) |
31st March, 2019 (₹) | |
| Outstanding Locker Rent | 4,600 | 6,300 |
| Advance Locker Rent | 3,000 | 4,000 |
Locker Rent received during the year ended 31st March, 2019 – ₹ 52,000.
What are the significant sources of income for not-for-profit-organization?
Arrange the Steps in Ascending order in the preparation of the income and Expenditure Account?
- Pursue the Receipt and Payment Account thoroughly.
- Exclude the opening and closing balances of cash and bank as they are not an income.
- Consider the following items not appearing in the Receipt and Payment Account that need to be taken into account for determining the surplus I deficit for the current year: (1) Depreciation affixed assets. (2) Provision for doubtful debts, if required. (3) Profit or loss on sale of affixed assets.
- Consider only the revenue receipts to be shown on the income side of the Income and Expenditure Account. Some of these need to be adjusted by excluding the amounts relating to the preceding and the succeeding periods and including the amounts relating to the current year not yet received.
- Take the revenue expenses to the expenditure side of the Income and Expenditure Account with due adjustments as per the additional information provided relating to the amounts received in advance and those not yet received.
- Exclude the capital receipts and capital payments as these are to be shown in the Balance Sheet.
Income and Expenditure Account records ______.
Income and Expenditure Account is a ______.
Credit side balance in the Income and Expenditure Account reveals:
Assertion (A): The Income and Expenditure Account is like the cash book.
Reason (R): Income and Expenditure Account shows the surplus or deficit that is earned during the financial year by the non-profit organisation.
The following is the extract of the Receipts and Payments Account of the Rajasthan Society for the year ending 31st December 2021.
| Receipts | Amount (₹) |
Payments | Amount (₹) |
| By medicine | 18,000 |
A bill of medicine purchased during the year amounting to ₹ 2,000 was outstanding. The amount debited to the Income and Expenditure Account will be:
From the following which item is not entered in the Income and Expenditure Account?
In Receipts and Payments, Account ______ balance is carried forward to the same account for the next accounting period.
Salary paid for the year ended 31st March, 2010 amounted to ₹ 75,000. How much amount will be recorded in Income and Expenditure Account in the following case?
| Year | 31-3-2009 | 31-3-2010 |
| Outstanding Salary | 6,500 | 6,000 |
| Prepaid Salary | 1,200 | 1,000 |
Locker's rent amount received by a school is treated as:
Income and expenditure account is prepared by:
From the following 'Receipts and Payments Account' of Golden Club for the year ended 31.3.2022, prepare Income and Expenditure Account:
| Receipts and Payments Account of Golden Club for the year ended 31.3.2022 |
|||||
| Receipts | Amount (₹) | Amount (₹) | Payments | Amount (₹) | Amount (₹) |
| Balance b/d | Honorarium | 75,000 | |||
| Cash | 70,000 | 2,70,000 | Stationery | 15,000 | |
| Bank | 2,00,000 | Electricity Bill | 35,000 | ||
| Subscriptions | 2,00,000 | Rent | 1,20,000 | ||
| Entrance Fees | 50,000 | Furniture | 1,80,000 | ||
| Sale of old newspaper | 2,000 | Fixed Deposit @ 9% p.a. on 31.03.2022 | 1,00,000 | ||
| Sale of old furniture (book value ₹ 10,000) | 4,000 | Balancec/d | |||
| Donations | 45,000 | Cash | 26,000 | 76,000 | |
| Life membership fees | 30,000 | Bank | 50,000 | ||
| 6,01,000 | 6,01,000 | ||||
Additional Information:
- Club had 1750 members each paying an annual subscription of ₹ 100.
- Furniture was purchased on 31.3.2022.
