Advertisements
Advertisements
Question
From the following information of a club show the amounts of match expenses and match fund in the appropriate Financial Statements of the club for the year ended on 31st March, 2019:
| Particulars | ₹ |
| Match expenses paid during the year ended 31st March, 2019 | 1,02,000 |
| Match Fund as on 31st March, 2019 | 24,000 |
| Donation for Match Fund (Received during the year ended 31st March, 2019) | 40,000 |
| Proceeds from the sale of match tickets (Received during the year ended 31st March, 2019) | 15,000 |
Solution
|
Balance Sheet |
||||
| as at 31st March, 2019 | ||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Match Fund |
24,000 |
|
|
|
|
Add: Donation for Match Fund |
40,000 |
|
|
|
|
Add: Proceed from Sale of Tickets |
15,000 |
|
|
|
|
Less: Match Expenses (Note) |
(79,000) |
NIL |
|
|
|
Income and Expenditure Account |
|||||
|
Dr. |
for the year ended 31st March, 2019 |
Cr. |
|||
|
Expenditure |
Amount (₹) |
Income |
Amount (₹) |
||
|
Match Expenses (Note) |
23,000 |
|
|
||
Note: The total Match expenses amounts to Rs 1,02,000 whereas the total amount available in the Match Fund is only Rs 79,000 (i.e. Rs 24,000 + Rs 40,000 +Rs 15,000). This implies that expenses of Rs 79,000 is met through the Fund while the remaining expenses of Rs 23,000 (i.e. Rs 1,02,000 – Rs 79,000) are debited to the Income and Expenditure Account.
APPEARS IN
RELATED QUESTIONS
What is Capital Fund? How is it calculated?
“Income and Expenditure Account of a Not-for-Profit Organisation is akin to Profit and Loss Account of a business concern”. Explain the statement.
Prepare Income and Expenditure Account and Balance Sheet for the year ended December 31, 2016 from the following Receipt and Payment Account and Balance Sheet of culture club:
Receipt and Payment Account
for the year ending March 31, 2016
| Receipts | Amount (Rs) | Payments | Amount (Rs) | |
| Opening cash balance | 12000 | Furniture | 4,000 | |
| Subscription | Telephone expenses | 800 | ||
| 2014-2015 | 2,000 | 24,000 | Salary | |
| 2015-2016 |
22,000 |
2014-2015 | 1000 | |
| Entrance fees | 2,800 | 2015-2016 | 4000 | |
| Locker rent | 1000 | Newspapers | 700 | |
| Life membership fee | 1200 | Sundry expenses | 1,000 | |
| Government grant | 11,000 | Defence bonds | 18,000 | |
| Land | 20,000 | |||
| Closing cash balance | 2,500 | |||
| 52000 | 52,000 | |||
Balance Sheet
for the year ending March 31, 2015
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Advance locker rent |
200 |
Cash in hand | 12,000 |
| Subscription Received in |
1,000 |
Outstanding Expenses | 3,000 |
| Advance Outstanding salary | 2,000 | Building | 35,000 |
| Loan | 10,000 | ||
| Capital fund |
36,800 |
||
| 50000 | 50000 |
Following is the information in respect of certain items of a Sports Club. You are required to show them in the Income and Expenditure Account and the Balance Sheet.
| Details | Amount (Rs) |
| Sports Fund as on April 1, 2016 | 80000 |
| Sports Fund Investments | 80000 |
| Interest on Sports Fund Investments | 8000 |
| Donations for Sports Fund | 30000 |
| Sports Prizes awarded | 16000 |
| Expenses on Sports Events | 7000 |
| General Fund | 200000 |
| General Fund Investments | 200000 |
| Interest on General Fund Investments | 20000 |
How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2019 in each of the following alternative cases?
Case I During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.
Case II During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.Out of this, ₹ 25,000 was received from individuals whose membership is not yet approved.
How are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March, 2019?
RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31st March, 2019
| Dr. | Cr. | |||
|
Receipts |
₹ | Payments | ₹ | |
| To Sale of Sports Materials | 26,000 | By Creditors for Sports Materials | 61,000 | |
| (Book value ₹ 20,000) | By Cash purchase of Sports Materials | 10,000 | ||
Additional information :
| As at 31st March, 2018 (₹) |
As at 31st March, 2019 (₹) |
|
| Sports Materials | 20,000 | 25,000 |
| Creditors for Sports Materials | 7,000 | 15,000 |
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.
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 31-3-18 (₹) | As at 31-3-19 (₹) | |
| Creditors for stationery | 78,000 | 50,000 |
| Stock of stationery | 62.000 | 41,000 |
During 2018-19, payment made to creditors was ₹ 1,80,000.
The Income and Expenditure Account is prepared on which basis with the help of the Receipts and Payments Account?
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.
How would you treat the following item in the case of a 'not-for-profit 'organization?
"Receipts from Charity Show Rs.7,000. Expenses on Charity Show Rs.3,000".
Income and Expenditure Account records ______.
Income and Expenditure Account is a ______.
Credit side balance in the Income and Expenditure Account reveals:
The following information has been extracted from the financial statements of a not-for-profit organization for the year ended 31st March, 2019:
| Particulars | Amount (₹) |
| Opening Balance of Match Fund | 5,00,000 |
| Sale of Match tickets | 3,75,000 |
| Donation for Match Fund received during the year |
1,24,000 |
| Match expenses | 10,00,000 |
Which of the following statements is correct for the presentation of the above items in the financial statements of the not-for-profit organization?
Income and Expenditure Account is generally prepared in:
From the following information obtained from the books of 'Murlidhar Charitable Hospital', calculate the amount of medicines to be debited to the Income and Expenditure Account of the hospital for the year ended 31.03.2022.
| Particulars | 31.3.2021 Amount (₹) |
31.3.2022 Amount (₹) |
| Stock of medicines | 1,70,000 | 3,75,000 |
| Creditors for medicines | 5,40,000 | 8,25,000 |
During the year ₹ 11,49,000 were paid to the Creditors for medicines. Medicines of ₹ 3,30,000 were purchased in cash for emergency use.
