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Question
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) |
Solution
| Dr. | Income and Expenditure Account for the year ended March 31, 2019 |
Cr. | ||
| Expenditure | Amount (₹) | Income | Amount (₹) | Amount (₹) |
| Subscriptions | 3,58,500 | |||
| Add: Outstanding at the end | 37,500 | |||
| Add: Advance in the beginning | 22,500 | |||
| Less: Outstanding in the beginning | 30,000 | |||
| Less: Advance at the end | 13,500 | 3,75,000 | ||
| Balance Sheet as on March 31, 2018 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Subscription received in Advance | 22,500 | Subscriptions Outstanding | 30,000 |
| Balance Sheet as on March 31, 2018 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Subscription received in Advance | 13,500 | Subscriptions Outstanding |
37,500 |
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What is Capital Fund? How is it calculated?
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%.
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 |
Subscriptions received during the year ended 31st March ,2019 are
| ₹ | ₹ | |
| For the year ended 31st March, 2018 | 1,600 | |
| For the year ended 31st March, 2019 | 84,400 | |
| For the year ended 31st March, 2020 | 3,200 | 89,200 |
There are 450 members, each paying an annual subscription of ₹ 200; ₹ 1,800 were in arrears for the year ended 31st March, 2018.
Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2019.
How are the following dealt with while preparing the final accounts for the year ended 31st March, 2019?
|
RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT) |
||||
|
Dr. |
|
Cr. | ||
| Receipts | ₹ |
Payments |
₹ | |
|
|
By Payments for Medicines | 1,50,000 | ||
Additional information :
| As at 1st April, 2018 (₹) |
As at 31st March, 2019 (₹) |
|
| Stock of Medicines | 50,000 | 75,000 |
| Creditors for Medicines | 40,000 | 60,000 |
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.
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 for the year ended 31st March 2019.
Receipts and Payments Account of Shine Club for the year ended 31st March, 2019
| Receipts |
Amount (₹) |
Payments |
Amount (₹) |
| To balance b/d |
50,000 |
By Furniture & equipments |
1,22,000 |
| To donations |
45,000 |
By Salaries |
32,000 |
| To subscriptions : |
|
By balance c/d |
13,400 |
| 2017-18 - 1,600 |
|
|
|
| 2018-19 - 60,000 |
|
|
|
| 2019-20 - 5,000 |
66,600 |
|
|
| To interest received |
5,800 |
|
|
|
1,67,400 |
1,67,400 |
Additional Information :
(i) Furniture and equipments were purchased on 1-10-2018. Depreciation @ 10% p.a. was to be provided on furniture and equipments.
(ii) Subscriptions in arrears for the year 2018-19 were ₹ 2,000
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| 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?
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 |
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31st March, 2021 (₹) |
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31.3.2022 Amount (₹) |
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