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Question
How will the following items be treated while preparing the Income and Expenditure Account and Balance Sheet of a Not-for-profit-organization for the year ended 31st March 2019?
| 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 |
During 2018-19 the payment made to creditors for sports material was ₹ 5,23,000.
Solution
In the books of ….
Income & Expenditure A/c for the year ended 31st March 2019
| Dr. | Cr. | ||
| Expenditure |
Amount (₹)
|
Income |
Amount (₹)
|
| To Sports Material consumed (WN 1) | 5,35,000 | ||
Balance Sheet as at 31st March, 2019
| Liabilities |
Amount(₹)
|
Assets |
Amount(₹)
|
| Creditors for Sports Material | 41,000 | Stock of Sports Material | 38,000 |
Working Notes:
1)
| Dr. | Creditors for Sports Material A/c | Cr. | |
| Particulars | Amount(₹) | Particulars | Amount(₹) |
| To Bank A/c | 5,23,000 | By balance b/d | 18,000 |
| (Payment to creditors) | By Stock of Sports Material A/c | ||
| (Purchases made) (Bal. Fig.) | 5,46,000 | ||
| To balance c/d | 41,000 | ||
| 5,64,000 | 5,64,000 | ||
2)
| Dr. | Stock of Sports Material A/c | Cr. | |
| Particulars | Amount(₹) | Particulars | Amount(₹) |
| To Balance b/d | 27,0000 |
By Income & Expenditure A/c |
5,35,000 |
| (Bal. Fig.) | |||
| To Creditors for Sports material a/c | 5,46,000 | By balance c/d | 38,000 |
| 5,73,000 | 5,73,000 | ||
APPEARS IN
RELATED QUESTIONS
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 |
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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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.
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|
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019 |
|||||
| Dr. | Cr. | ||||
| Receipts | ₹ | Payments | ₹ | ||
| To Balance b/d (cash) | 1,80,000 |
By Salaries |
4,80,000 | ||
| To Subscriptions | 9,00,000 | By Rent | 50,000 | ||
| To Sale of Investments | 2,00,000 | By Stationery | 20,000 | ||
| To Sale of Old Furniture (Book Value ₹ 40,000) | 30,000 | By Defence Bonds | 3,00,000 | ||
| To Donations | 10,000 | By Furniture | 2,00,000 | ||
| By Bicycles | 30,000 | ||||
| By Balance c/d (Cash) | 2,40,000 | ||||
|
13,20,000 |
13,20,000 | ||||
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 |
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Payments | Amount (₹) |
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