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Question
How are the following dealt with while preparing the final accounts for the year ended 31st , 2019?
| RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT) for the year ended 31st March, 2019 |
||||
| Dr. | Cr. | |||
| Receipts | ₹ | Payments | ₹ | |
| By Payments for Sports Material | 1,40,000 | |||
| BALANCE SHEET (AN EXTRACT) as at 1st April, 2018 |
||||
|
Liabilities |
₹ |
Assets |
₹ | |
| Creditors for Sports Materials | 6,000 | Sports Materials | 8,000 | |
Additional information :
Sports Materials in Hand on 31st March, 2019 – ₹ 22,000.
Solution
|
Income and Expenditure Account for the year ended March 31, 2019 |
||||||
|
Dr. |
|
Cr. |
||||
|
Expenditure |
Amount (₹) |
Income |
Amount (₹) |
|||
|
Sports Material |
1,40,000 |
|
|
|
||
|
Add: Opening Stock |
8,000 |
|
|
|
||
|
Less: Closing Stock |
(22,000) |
|
|
|
||
|
Less: Creditors in the beginning |
(6,000) |
1,20,000 |
|
|
||
|
Balance Sheet as on March 31, 2019 |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
|
|
Stock of Sport Materials |
22,000 |
Alternatively, Sports Material consumed can also be calculated as
|
Creditors for Sports Material Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Expenditure |
Amount (₹) |
Income |
Amount (₹) |
||
|
Bank A/c |
1,40,000 |
Balance b/d (Creditors in the beginning) |
6,000 |
||
|
(Amount paid for sports materials) |
|
Purchases A/c (Balancing Figure) |
1,34,000 |
||
|
|
1,40,000 |
|
1,40,000 |
||
Sports Material Consumed
= Opening Stock + Purchases – Closing Stock
= 8,000 + 1,34,000 – 22,000 = Rs 1,20,000
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RELATED QUESTIONS
Following is the Receipt and Payment Account of Indian Sports Club, prepared Income and Expenditure Account, Balance Sheet as on December 31, 2017:
Receipt and Payment Account
for the year ending December 31, 2017
| Receipts | Amount (Rs) | Payments | Amount (Rs) |
| Balance b/d | 7,890 | Salary | 11,000 |
| Subscriptions | 52,000 | Electric charges | 5,500 |
| Life member ship fee | 2,200 | Billiard Table | 17,500 |
| Entrance fee |
3,200 |
Office expenses | 4,100 |
| Tournament fund | 26,000 | Printing and Stationery | 2,300 |
| Locker Rent | 1,250 | Tournament expenses | 18,500 |
| Sale of old sports goods (Costing Rs 2,200) | 2,500 | Repair of ground | 2,000 |
| Sale of Old Newspaper |
750 |
Furniture purchased | 7,700 |
| Legacy |
37,500 |
Sports equipments | 12,000 |
| Cash in Hand | 12,690 | ||
| Cash at Bank | 10,000 | ||
| Fixed Deposit (on 1.10.17 for 10% p.a) | 30,000 | ||
| 133290 | 133290 |
Other Information:
Subscription outstanding was on December 31, 2016 Rs 1,200 and Rs 3,200 on December 31, 2017. Locker rent outstanding on December 31, 2017 Rs 250. Salary outstanding on December 31, 2017 Rs 1,000.
On January 1, 2017, club has Building Rs 36,000, furniture Rs 12,000, Sports equipments Rs 17,500. Depreciation charged on these items @ 10% (including Purchase).
How are the following items shown in the accounts of a Not-for-Profit Organisation ?
| Rs. | |
| Tournament Fund | 50,000 |
| Tournament Expenses | 15,000 |
| Receipts from Tournament | 20,000 |
How are the following dealt with in the accounts of a Not-for-Profit Organisation ?
|
Case I
|
Dr. (₹)
|
Cr.(₹) |
Case II
|
Dr. (₹) | Cr. (₹) |
| Prize Fund Prizes Paid Match Expenses |
12,000
15,000 |
50,000 | Match Fund Match Expenses Investments of Match Fund Interest on Match Fund Investments Prizes Paid |
35,000 60,000 19,000 |
1,00,000 3,000 |
How are the following dealt with while preparing the final accounts of a club?
| TRIAL BALANCE as at 31st March, 2019 |
||
| Particulars |
Dr.(₹)
|
Cr. (₹) |
| Match Fund | ........ | 80,000 |
| Match Fund Investments | 72,000 | ......... |
| Match Fund Bank Balance | 35,000 | ....... |
| Interest on Match Fund Investments | ......... | 2880 |
| Match Expenses | 5,500 | ......... |
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Case I
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Case II
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Case III
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