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Question
The following information is given by Alchemy Medical College, Library department for the year 2020-21.
| Particulars | Amount (₹) |
| Books and Journals Fund as on 1.4.2020 | 4,50,000 |
| 7% Books and Journals Fund Investments as on 1.4.2020 | 4,00,000 |
| Interest on Books and Journals Fund Investments | 13,000 |
| Donations for Books and Journals | 20,000 |
| Books Purchased | 70,000 |
| General Fund as on 1.4.2020 | 10,00,000 |
Show the accounting treatment of the above-mentioned items in the Balance Sheet of the Alchemy Medical College as at 31st March,2021.
Solution
| An Extract of Balance Sheet as of 31st March, 2021 | |||||
| Liabilities | ₹ | Assets | ₹ | ||
| General Fund | 10,00,000 | 7% Books & Journals Fund | |||
| Add: Books and Journals Fund | 70,000 | 10,70,000 `(1/2)` | investment | 4,00,000 `(1/2)` | |
| Books & Journals Fund | 4,50,000 | Accrued Interest on Books and Journals Fund Investment | 5,000 `(1/2)` | ||
| Add: Donations for Books & Journals | 20,000 | Books | 70,000 `(1/2)` | ||
| Interest in Books & Journals | |||||
| Investment | 13,000 | ||||
| Accrued Interest | 15,000 | 28,000 | |||
| Less: Books purchased | 70,000 | 4,28,000(1) | |||
Working Note:
Interest on Books and Journals Investments
= `4,00,000 xx 7/100`
= 28,000
Accrued Interest
= 28,000 – 13,000
= 15,000
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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 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 :
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| Particulars | 31st March, 2018 ₹ |
31st March, 2019 ₹ |
| Stocks of Sports Materials | 6,200 | 4,800 |
| Creditors for Sports Materials | 9,800 | 7,200 |
| Advance to Suppliers for Sports Materials | 11,000 | 19,000 |
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