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Question
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.
Solution
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
RELATED QUESTIONS
“Income and Expenditure Account of a Not-for-Profit Organisation is akin to Profit and Loss Account of a business concern”. Explain the statement.
From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account and Balance Sheet for the year ending March 31, 2017.
| Dr. | Receipt and Payment Account for the year ending March 31, 2017 |
Cr. | |
| Receipts | Amount (Rs) | Payments | Amount (Rs) |
| Cash in hand as on 1.4.16 | 6,800 | Salaries | 24,000 |
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| 86800 | 86800 | ||
Additional Information:
|
As on |
As on |
||
| i) | Subscription received in advance | 1,000 | 3,200 |
| ii) | Outstanding subscription |
2,000 |
3,700 |
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| Details | Amount (Rs) |
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| Sports Fund Investments | 80000 |
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| ₹ | ₹ | |
| For the year ended 31st March, 2018 | 1,600 | |
| For the year ended 31st March, 2019 | 84,400 | |
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Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2019.
From the following information, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2019:
| ₹ | ||
| 1st April, 2018 | Subscriptions in Arrears | 50,000 |
| Subscriptions Received in Advance | 30,000 | |
| 31st March, 2019 | Subscriptions in Arrears | 25000 |
| Subscriptions Received in Advance | 70,000 |
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– ₹ 3,00,000
Subscription still in arrears for the year 2017 – 18 – ₹ 10,000.
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 |
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| As at 1-4-2018 | As at 31-3-2019 | |
| (₹) | (₹) | |
| Creditors for sports materials | 18,000 | 41,000 |
| Stock of sports materials | 27,000 | 38,000 |
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