Double Entry Book Keeping Ts Grewal Vol. I 2019 for Class 12 Commerce Accountancy Chapter 1 - Financial Statements Of Not For Profit Organisations

Question 1:

From the information given below, prepare Receipts and Payments Account of Railway Club for the year ended 31st march, 2019:


	(₹)		(₹)
Cash in Hand on 1st April, 2018	4,390	Salaries	21,500
Subscription	37,600	Honorarium to Secretary	2,500
Donations	8,000	Interest Received on Investments	2,950
Entrance Fees	4,300	Printing and Stationery	350
Rent Received for Club Halls	5,250	Petty Cash Expenses	900
Electricity Charges	3,440	Insurance Premium Paid	310
Taxes paid	490

Answer:

In the books of Railway Club
Dr.	Receipts and Payments A/c for the year ended 31^st March, 2019				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To balance b/d		4,390	By Electricity Charges	3,440
To Subscriptions		37,600	By Taxes Paid	490
To Donations		8,000	By Salaries	21,500
To Entrance Fees		4,300	By Honorarium to Secretary	2,500
To Rent Received for Club Halls		5,250	By Printing and Stationery	350
To Interest Received on Investments		2,950	By Petty Cash Expenses	900
			By Insurance Premium Paid	310
			By balance c/d	33,000

		62,490		62,490

Question 2:

Bengal Cricket Club was inaugurated on 1st April, 2018. It had the following Receipts and Payments during the year ended 31st March, 2019:
Receipts: Entrance Fees ₹ 10,000; Subscriptions ₹ 60,000; Donations ₹ 10,000.
Payments: Rent ₹ 15,000; Postages ₹ 1,000; Newspapers and Magazines ₹ 8,000; Investments ₹ 30,000; Stationery ₹ 4,000; Entertainment Expenses ₹ 3,000; Miscellaneous Expenses ₹ 2,000.
Show the Receipts and Payments Account for the year ended 31st March, 2019.

Answer:

In the books of Bengal Cricket Club
Dr.	Receipts and Payments A/c for the year ended 31^st March, 2019				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To Entrance Fees		10,000	By Rent	15,000
To Subscriptions		60,000	By Postages	1,000
To Donations		10,000	By Newspapers and Magazines	8,000
			By Investments	30,000
			By Stationery	4,000
			By Entertainment Expenses	3,000
			By Miscellaneous Expenses	2,000
			By balance c/d (as on 31^st Mar, 2019)	17,000

		80,000		80,000

Question 3:

The following information were obtained from the books of Delhi Club as on 31st March, 2019 at the end of the first year of the Club, prepare Receipts and Payment Account for the year ending 31st March, 2019:


Receipts	(₹)	Payments	(₹)
Donation for Building and Library Room	2,00,000	Purchase of Land	10,000
Entrance Fees	17,000	Purchase of Furniture	1,30,000
Subscription	19,000	Salaries	4,800
Lockers Rent	1,660	Maintenance of Play Grounds	1,000
Refreshment Receipts	16,000	Rent	8,000
Government Grant	25,000	Refreshment Payments	8,000
		Library Books	25,000
		Purchase of 90% Government Bonds	1,60,000
		Term Deposit with Bank	15,000

Answer:

In the books of Delhi Club
Dr.	Receipts and Payments A/c for the year ended 31^st March, 2019				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To Donation for Building and Library Room		2,00,000	By Purchase of Land	10,000
To Entrance Fees		17,000	By Purchase of Furniture	1,30,000
To Subscription		19,000	By Salaries	4,800
To Lockers Rent		1,660	By Maintenance of Play Grounds	1,000
To Refreshment Receipts		16,000	By Rent	8,000
To Government Grant		25,000	By Refreshment Payments	8,000
To balance c/d		83,140	By Library Books	25,000
			By Purchase of 9% Government Bonds	1,60,000
			By Term Deposit with Bank	15,000

		3,61,800		3,61,800

Question 4:

From the following information, prepare Receipts and Payments Account of Long-town Sports Club for the year ending 31st March, 2019:


Particulars	(₹)	Particulars	(₹)
Opening Balance:		Charity Given	10,000
Cash in Hand	50,000	Match Expenses	30,000
Cash at bank	60,000	Salaries	63,600
Subscription Received:		Honorarium	4,000
2017-18	4,000	12% Investment Purchased	60,000
2018-19	1,40,000	Entrance Fees	4,000
2019-20	8,000	Interest on 12% Investments	6,000
Furniture Purchased	70,000	Closing Balance:
General Donations	20,000	Cash in Hand	24,000
Donations for Tournament	40,000	Cash at Bank	?

Answer:

In the books of Longtown Sports Club
Dr.	Receipts and Payments A/c for the year ended 31^st March, 2019				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To Opening Balance:			By Charity Given	10,000
Cash in Hand		50,000	By Match Expenses	30,000
Cash at Bank		60,000	By Salaries	63,600
To Subscriptions Received:			By Honorarium	4,000
2017-18		4,000	By 12% Investment Purchased	60,000
2018-19		1,40,000	By Furniture Purchased	70,000
2019-20		8,000	By Closing Balance
To Entrance Fees		4,000	Cash in Hand	24,000
To General Donations		20,000	Cash at Bank (WN1) (Bal. Fig.)	70,400
To Donations for Tournament		40,000
To Interest on 12% Investments		6,000

		3,32,000		3,32,000

Working Notes:

Calculation of closing balance of Cash:

Total Receipts = ₹ 3,32,000
Total Payments = ₹ 2,37,600
Cash in Hand = ₹ 24,000

Cash at Bank	=	Total Receipts – (Total Payments + Closing Balance of Cash)
	=	₹ [3,32,000 – 2,61,600] = ₹ 70,400

Question 5:

From the following particulars of Evergreen club, prepare Receipts and payments Account for the year ended 31^stMarch,2019:

	(₹)		(₹)
Cash in Hand on 1stApril,2018	50,000	Newspaper and Magazines	87,000
Cash at Bank on 1st April,2018	3,40,000	Sale of Old Newspaper	12,000
Subscriptions Received	15,70,000	Books Purchased	3,40,000
Donations Received	2,80,000	Sports Materials Purchased	4,70,000
Investments purchased	5,00,000	Interest on Investments Received	50,000
Rent paid	50,000	Honorarium to coaches	1,50,000
General Expenses	2,30,000	Cash in Hand on 31st March,2019	30,000
Postage and stationery	25,000	Cash at Bank on 31st March ,2019	?

Answer:

Books of Evergreen Club
Receipts and Payments Account for the year ended March 31, 2019
Dr.						Cr.
Receipts		Amount (₹)	Payments		Amount (₹)
Balance b/d			Investments Purchased		5,00,000
Cash in Hand	50,000		Rent Paid		50,000
Cash at Bank	3,40,000	3,90,000	General Expenses		2,30,000
Subscription Received		15,70,000	Postage and Stationery		25,000
Donation Received		2,80,000	Newspapers and Magazines		87,000
Sale of Old Newspapers		12,000	Books Purchased		3,40,000
Interest on Investments Received		50,000	Sports Material Purchased		4,70,000
			Honorarium to Coacher		1,50,000
			Balance c/d
			Cash in Hand	30000
			Cash at Bank (Balancing Figure)	4,20000	4,50,000
		23,02,000			23,02,000

Question 6:

How are the following items shown in the accounts of a Not-for-Profit Organisation ?

	₹
Tournament Fund	50,000
Tournament Expenses	15,000
Receipts from Tournament	20,000

Answer:

Balance Sheet
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Tournament Found	50,000
Add: Tournament Receipts	20,000
Less: Tournament Expenses	(15,000)	55,000

Question 7:

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

Answer:

Case 1

Balance Sheet
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Prize Fund	50,000
Less: Prize Paid	(12,000)	38,000

Note: Match Expenses of Rs 15,000 are not deductible from the Prize Fund. This is because the Prize Fund is maintained only to meet the expenses relating to the Prize. However, the match expenses (i.e. Rs 15,000) will be debited to the Income and Expenditure Account as there is no specific fund is maintained to meet such expenses.

Case 2

Balance Sheet
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Match Fund	1,00,000		Match Fund Investments	60,000
Less: Match Expenses	(35,000)
Add: Interest on Match Fund Investments	3,000	68,000

Note: Prizes paid worth Rs 19,000 are not deductible from the Match fund because the Match Fund. This is because Match Fund is maintained only to meet the expenses relating to the Match. However, the prizes paid (i.e. Rs 19,000) will be debited to the Income and Expenditure Account as there is no specific fund is maintained for distributing the prizes. Also, the interest on Match Fund Investments is added to the Match Fund because it is an income related to this particular fund.

Question 8:

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	3,500	....
Interest on Match Fund Investments	.....	2,880
Match Expenses	5,500	....

Answer:

Balance Sheet
as at 31st March, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Match Fund	80,000		Match Fund Investment	72,000
Add: Interest on Match Fund Investment	2,880		Match Fund Bank Balance	3,500
Less: Match Expenses	(5,500)	77,380

Question 9:

From the following information of a club show the amounts of match expenses and match fund in the appropriate Financial Statements of the club for the year ended on 31st March, 2019:

Particulars	₹
Match expenses paid during the year ended 31st March, 2019	1,02,000
Match Fund as on 31st March, 2019	24,000
Donation for Match Fund (Received during the year ended 31st March, 2019)	40,000
Proceeds from the sale of match tickets (Received during the year ended 31st March, 2019)	15,000

Answer:

Balance Sheet
as at 31st March, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Match Fund	24,000
Add: Donation for Match Fund	40,000
Add: Proceed from Sale of Tickets	15,000
Less: Match Expenses (Note)	(79,000)	NIL

Income and Expenditure Account
Dr.	for the year ended 31st March, 2019				Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
Match Expenses (Note)		23,000

Note: The total Match expenses amounts to Rs 1,02,000 whereas the total amount available in the Match Fund is only Rs 79,000 (i.e. Rs 24,000 + Rs 40,000 +Rs 15,000). This implies that expenses of Rs 79,000 is met through the Fund while the remaining expenses of Rs 23,000 (i.e. Rs 1,02,000 – Rs 79,000) are debited to the Income and Expenditure Account.

Question 10:

Show how are the following items dealt with while preparing the final accounts for the year ended 31st March, 2019 of a Not-for-profit Organisation:
Case I
Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed. Capital Fund as at 31st March, 2018 is ₹ 20,00,000.
Case II
Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed. Pavilion Fund as at 31st March, 2018 is ₹ 10,00,000 and Capital Fund as at 31st March, 2018 is ₹ 20,00,000.
Case III
Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed. Pavilion Fund as at 31st March, 2018 is ₹ 10,00,000, and Capital Fund as at 31st March, 2018 is ₹ 20,00,000. Donation Received for Pavilion on 1st January, 2019 is ₹ 5,00,000.

Answer:

Case 1

Balance Sheet as on March 31, 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund	20,00,000	Pavilion Work-in-Progress	6,00,000

Case 2

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Pavilion Fund	10,00,000		Pavilion Work-in-Progress	6,00,000
Less: Expenditure on Construction of Pavilion	(6,00,000)	4,00,000
Capital Fund	20,00,000
Add: Pavilion Work-in-Progress	6,00,000	26,00,000

Case 3

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Pavilion Fund	10,00,000
Add: Donation	5,00,000		Pavilion Work-in-Progress	6,00,000
Less: Expenditure on Construction of Pavilion	(6,00,000)	9,00,000
Capital Fund	20,00,000
Add: Pavilion Work-in-Progress	6,00,000	26,00,000

Question 11:

How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2019 in each of the following alternative cases?

Case I During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.

Case II During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.Out of this, ₹ 25,000 was received from individuals whose membership is not yet approved.

Answer:

Case 1

Income and Expenditure Account for the year ended March 31, 2019
Dr.				Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
		Entrance Fees	1,00,000

Case 2

Income and Expenditure Account for the year ended March 31, 2019
Dr.				Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
		Entrance Fees	75,000
		(1,00,000 – 25,000)

Question 12:

In the year ended 31st March, 2019, subscriptions received by the Jaipur Literary Society were ₹ 4,20,000. These subscriptions include ₹ 14,000 received for the year ended 31st March, 2018. On 31st March, 2019, subscriptions due but not received were ₹ 10,000. What amount should be credited to Income and Expenditure Account for the year ended 31st March, 2019 as subscription?

Answer:

Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure	Amount (₹)	Income		Amount (₹)
		Subscription	4,20,000
		Less: Outstanding for 2017-18	14,000
		Add: Outstanding for 218-19	10,000	4,16,000

Question 13:

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.

Answer:

Income and Expenditure Account for the year ended March 31, 2019
Dr.				Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
		Subscription
		(450 Members × Rs 200 each)	90,000

Question 14:

In the year ended 31st March, 2019, subscriptions received by Kings Club, Delhi were ₹ 4,09,000 including ₹ 5,000 for the year ended 31st March, 2018 and ₹ 10,000 for the year ended 31st March, 2020. At the end of the year ended 31st March, 2019, subscriptions outstanding for the year ended 31st March, 2019 were ₹ 15,000. The subscriptions due but not received at the end of the previous year, i.e., 31st March, 2018 were ₹ 8,000, while subscriptions received in advance on the same date were ₹ 18,000.

Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2019.

Answer:

Statement of Subscription for the year ended March 31, 2019
Particulars	Amount (₹)
Subscription received during the year 2018-19	4,09,000
Add: Outstanding for 2018-19 (Current year)	15,000
Less: Received for 2017-18 (Previous year)	(5,000)
Add: Advance received in 2017-18 (Previous year)	18,000
Less: Advance received for 2019-20 (Next year)	10,000)
Subscription to be credited to Income and Expenditure Account	4,27,000

Question 15:

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	25,000
	Subscriptions Received in Advance	70,000

Subscriptions received during the year ended 31st March, 2019 – ₹ 3,00,000
Subscription still in arrears for the year 2017 – 18 – ₹ 10,000.

Answer:

**Statement of Subscription**
*for the year ended March 31, 2019*
Particulars	Amount (₹)
Subscription received during the year 2018-19	3,00,000
Less: Subscription-in-Arrears for 2017-18	50,000
Add: Subscription-in-Arrears for 2018-19	25,000
Add: Subscription-in Advance for 2018-19	30,000
Less: Subscription-in Advance for 2019-20	70,000
Subscription to be Credited to Income and Expenditure Account	2,35,000

Question 16:

Calculate amount of subscriptions which will be treated as income for the year ended 31st March, 2019 for each of the following cases:

	Particulars	₹
Case I.	(i) Subscriptions collected during the year ended 31st March, 2019 (ii) Subscriptions in arrears for the year ended 31st March, 2019 (iii) Subscriptions received in advance for the year ended 31st March, 2020	2,50,000 6,000 5,000
Case II.	(i) Subscriptions collected during the year ended 31st March, 2019 (ii) Subscriptions for the year ended 31st March, 2019 collected in the year ended 31st March, 2018 (iii) Subscriptions unpaid for the year ended 31st March, 2019	49,000 3,000 2,000
Case III.	(i) Subscriptions received during the year ended 31st March, 2019 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2019 (iii) Subscriptions not yet collected for the year ended 31st March, 2019	25,000 3,000 5,000
Case IV.	(i) Subscriptions received during the year ended 31st March, 2019 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2019 (iii) Subscriptions not yet collected for the year ended 31st March, 2019 (iv) Subscriptions received in advance for the year ended 31st March, 2020	80,000 5,000 8,000 2,000
Case V.	(i) Subscriptions received during the year ended 31st March, 2019 (ii) Subscriptions outstanding at the end of the year ended 31st March, 2018 (iii) Subscriptions received in advance on 31st March, 2018 (iv) Subscriptions received in advance on 31st March, 2019 (v) Subscriptions not yet collected for the year ended 31st March, 2019	90,000 5,000 3,000 4,000 6,000

Answer:

Case 1

Statement of Subscription for the year ended March 31, 2019
Particulars	Amount (₹)
Subscriptions collected during the year 2018-19	2,50,000
Add: Subscriptions-in-arrears for the year 2018-19	6,000
Less: Subscriptions received in advance for the year 2019-20	(5,000)
Subscriptions Income for the year 2018-19	2,51,000

Case 2

Statement of Subscription for the year ended March 31, 2019
Particulars	Amount (₹)
Subscriptions collected during the year 2018-19	49,000
Add: Subscriptions collected for 2018-19 in 2017-18	3,000
Add: Subscriptions unpaid for the year 2018-19	2,000
Subscriptions Income for the year 2018-19	54,000

Case 3

Statement of Subscription for the year ended March 31, 2019
Particulars	Amount (₹)
Subscriptions received during the year 2018-19	25,000
Less: Subscriptions outstanding in the beginning of 2018-19	(3,000)
Add: Subscriptions yet not collected for 2018-19	5,000
Subscriptions Income for the year 2018-19	27,000

Case 4

Statement of Subscription for the year ended March 31, 2019
Particulars	Amount (₹)
Subscriptions received during the year 2018-19	80,000
Less: Subscriptions outstanding in the beginning of 2018-19	(5,000)
Add: Subscriptions yet not collected for 2018-19	8,000
Less: Subscriptions for 2019-20 received in advance	(2,000)
Subscriptions Income for the year 2018-19	81,000

Case 5

Statement of Subscription for the year ended March 31, 2019
Particulars	Amount (₹)
Subscriptions received during the year 2018-19	90,000
Less: Subscriptions outstanding at the end of 2017-18	(5,000)
Add: Subscriptions received in advance on Mar. 31, 2018	3,000
Less: Subscriptions received in advance on Mar. 31, 2019	(4,000)
Add: Subscriptions not yet collected for 2018-19	6,000
Subscriptions Income for the year 2018-19	90,000

Question 17:

From the following particulars, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2019:

		₹
(a)	Subscriptions in arrears on 31st March, 2018	500
(b)	Subscriptions received in advance on 31st March, 2018 for the year ended on 31st March, 2019	1,100
(c)	Total Subscriptions received during the year ended 31st March, 2019 (including ₹ 400 for the year ended 31st March, 2018, ₹ 1,200 for the year ended 31st March, 2020 and ₹ 300 for the year ended 31st March, 2021)	35,400
(d)	Subscriptions outstanding for year ended 31st March, 2019	400

Answer:

Statement of Subscriptions for the year ended March 31, 2019
Particulars	Amount (₹)
Subscriptions received during 2018-19	35,400
Less: Subscriptions-in-arrears received for 2017-18	(400)
Less: Subscriptions received-in-advance for 2019-20	(1,200)
Less: Subscriptions received-in-advance for 2017-18	(300)
Add: Subscriptions Outstanding for 2018-19	400
Add: Subscriptions received in 2017-18 for 2018-19	1,100
Subscriptions to be credited to Income and Expenditure Account	35,000

Question 18:

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	3,58,500
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)

Answer:

Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure	Amount (Rs)	Income		Amount (Rs)
		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 (Rs)	Assets	Amount (Rs)
Subscription received in Advance	22,500	Subscriptions Outstanding	30,000

Balance Sheet as on March 31, 2019
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Subscription received in Advance	13,500	Subscriptions Outstanding	37,500

Question 19:

From the following information, calculate amount of subscriptions outstanding for the year ended 31st March, 2019:
A club has 200 members each paying an annual subscription of ₹ 1,000. The Receipts and Payments Account for the year showed a sum of ₹ 2,05,000 received as subscriptions. The following additional information is provided :

	₹
Subscriptions Outstanding on 31st March, 2018	30,000
Subscriptions Received in Advance on 31st March, 2019	40,000
Subscriptions Received in Advance on 31st March, 2018	14,000

Answer:

Subscriptions Account
Dr.	for the year ended 31^st March, 2019				Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)

Income and Expenditure (200 members × Rs 100 each)		2,00,000	Bank (Subscriptions Received)	2,05,000
Outstanding Subscriptions in the beginning		30,000	Advance Subscriptions in the beginning	14,000
Advance Subscriptions at the end		40,000	Outstanding Subscriptions at the end (Balancing Figure)	51,000
		2,70,000		2,70,000

Question 20:

From the following information, prepare Subscription Account for the year ending 31st March, 2019:

Particulars	31st March, 2018 (₹)	31st March, 2019 (₹)
Subscription in Arrears	20,000	18,000
Subscription in Advance	13,000	11,000

In the year ending 31st March, 2019, subscription received were ₹ 2,10,000 (including ₹ 6,000 of arrears from previous year) and subscription arrears of previous year were written off ₹ 4,000.

Answer:

Dr.	Subscriptions A/c					Cr.
Date		Particulars	Amount (₹)	Date	Particulars	Amount (₹)
2018				2018
April 01		To Outstanding Subscriptions A/c	20,000	April 01	By Subscriptions Received in Advance A/c	13,000
2019				2019
March 31		To Subscriptions Received in Advance A/c	11,000	March 31	By Subscriptions written off (Inc. & Exp. A/c)	4,000
March 31		To Income & Expenditure A/c (Bal. Fig.)	2,14,000	March 31	By Bank A/c	2,10,000
				March 31	By Outstanding Subscriptions A/c	18,000

			2,45,000			2,45,000

Question 21:

On the basis of information given below, calculate the amount of medicines to be debited to the Income and Expenditure Account of Good Health Hospital for the year ended 31st March, 2019:

Particulars	1st April, 2018 (₹)	31st March, 2019 (₹)
Stock of Medicines	1,75,750	1,44,650
Creditors for Medicines	15,06,900	18,20,700

Medicines purchased during the year ended 31st March, 2019 were ₹ 60,80,700.

Answer:

Statement of Medicine Consumed during the year ended 31st March, 2019
Particulars	Amount (₹)
Medicine Purchased during the year 2018-19	60,80,700
Add: Stock in the beginning (as on April 01, 2018)	1,75,750
Less: Stock at the end (as on March 31, 2019)	(1,44,650)
Medicine to be debited to Income and Expenditure Account	61,11,800

Question 22:

Calculate amount of medicines consumed during the year ended 31st March, 2019:	₹
Opening Stock of Medicines	1,00,000
Opening Creditors for Medicines	90,000
Cash purchases of Medicines during the year	3,00,000
Closing Stock of Medicines	1,50,000
Closing Creditors for Medicines	1,30,000

Answer:

Statement of Medicines Consumed for the year ending March 31, 2019
Particulars	Amount Rs
Cash Purchases of medicines during the year	3,00,000
Add: Opening Stock of Medicines	1,00,000
Less: Closing Stock of Medicines	1,50,000
Add: Closing Creditors of Medicines	1,30,000
Less: Opening Creditors of Medicines	90,000
Amount of Medicines Consumed during the year 2018-19	2,90,000

Question 23:

Calculate amount to be posted to the Income and Expenditure Account for the year ended 31st March, 2019:

(i)	Amount paid for stationery during the year ended 31st March, 2019 – ₹5,400; Stock of Stationery in Hand on 31st March, 2019 – ₹ 250.
(ii)	Stock of Stationery in Hand on 1st April, 2018 – ₹ 1,500; Payment made for Stationery during the year ended 31st March, 2019 – ₹ 5,400; Stock of Stationery in Hand on 31st March, 2019 – ₹ 250.
		₹
(iii)	Stock of Stationery on 1st April, 2018	1,500
	Creditors for Stationery on 1st April, 2018	1,000
	Amount paid for Stationery during the year	5,400
	Stock of Stationery on 31st March, 2019	250

Answer:

(a)

Statement of Stationery Consumed at the end of March 31, 2019
Particulars	Amount (₹)
Amount paid for Stationery during the year ended 31st March, 2019	5,400
Less: Closing Stock (as on March 31, 2019)	250
Amount of Stationery to be posted to Income and Expenditure Account	5,150

(b)

Statement of Stationery Consumed at the end of March 31, 2019
Particulars	Amount (₹)
Payment made for Stationery during the year ended 31st March, 2019	5,400
Add: Opening Stock (as on April 01, 2018)	1,500
Less: Closing stock (as on March 31, 2019)	250
Amount of Stationery to be posted to Income and Expenditure Account	6,650

(c)

Statement of Stationery Consumed at the end of March 31, 2019
Particulars	Amount (₹)
Amount paid for Stationery during the year ended 31st March, 2019	5,400
Add: Opening Stock (as on April 01, 2018)	1,500
Less: Closing stock (as on March 31, 2019)	250
Less: Creditors for Stationery in the beginning (April 01, 2018)	1,000
Amount of Stationery to be posted to Income and Expenditure Account	5,650

Question 24:

On the basis of the following information, calculate amount that will appear against the term 'Stationery Used' in the Income and Expenditure Account for the year ended 31st March, 2019:

	₹
Stock of Stationery as at 1st April, 2018	12,000
Creditors for Stationery as at 1st April, 2018	25,600
Amount paid for Stationery during the year ended 31st March, 2019	1,40,000
Stock of Stationery as at 31st March, 2019	23,200
Creditors for Stationery as at 31st March,2019	24,000

Answer:

Statement of Stationery Consumed for the year ended March 31, 2019
Particulars	Amount (₹)
Amount paid for Stationery during the year 2018-19	1,40,000
Add: Opening Stock (as on April 01, 2018)	12,000
Less: Closing Stock (as on March 31, 2019)	(23,200)
Add: Creditors at the end (as on March 31, 2019)	24,000
Less: Creditors in the beginning (as on April 01, 2018)	(25,600)
Amount of Stationery be shown in Income and Expenditure Account	1,27,200

Question 25:

Calculate the amount that will be posted to the income and Expenditure Account for the year ended 31st March, 2019:

	₹
Stock of Stationery on 1st April, 2018	30,000
Creditors for Stationery on 1st April, 2018	20,000
Advances paid for Stationery carried forward from the year ended 31st March, 2018	2,000
Amount paid for Stationery during the year ended 31st March, 2019	1,08,000
Stock of Stationery on 31st March, 2019	5,000
Creditors for Stationery on 31st March, 2019	13,000
Advance paid for Stationery on 31st March, 2018	3,000

Answer:

Statement of Stationery for the year ended Mar. 31, 2019
Particulars	Amount (₹)
Amount paid for Stationery during the year 2018-19	1,08,000
Add: Opening Stock (as on Apr. 01, 2018)	30,000
Less: Closing stock (as on Mar. 31, 2019)	5,000
Less: Creditors in the beginning (as on Apr. 01, 2018)	20,000
Add: Creditors at the end (as on Mar. 31, 2019)	13,000
Add: Advance in the beginning (as on Apr. 01, 2018)	2,000
Less: Advance at the end (as on Mar. 31, 2019)	3,000
Amount to be posted to Income and Expenditure Account	1,25,000

Question 26:

Calculate the amount of sports material to be transferred to income and Expenditure Account of Raman Bhalla Sports Club, Ludhiana, for the year ended 31st March, 2018:

	Particulars	(₹)
(i)	Sports material sold during the year (Book Value ₹ 50,000)	56,000
(ii)	Amount paid to creditors for sports materials	91,000
(iii)	Cash purchase of sports material	40,000
(iv)	Sports material as on 31st March, 2017	50,000
(v)	Sports material as on 31st March, 2018	55,000
(vi)	Creditors for sports material as on 31st March, 2017	37,000
(vii)	Creditors for sports material as on 31st March, 2018	45,000

Answer:

Calculation of Amount of Sports Material Consumed to be debited to Income & Expenditure A/c
Particulars	Amount (₹)
Amount Paid to the creditors of Sports Materials	91,000
Less: Creditors of the sports material as on 31^st March, 2017	37,000
Closing Stock of Sports Material as on 31^st March, 2018	55,000
Sports Material sold during the year	50,000
Add: Creditors of the sports material as on 31^st March, 2018	45,000
Cash purchase of Sports Material	40,000
Opening Stock of Sports Material as on 31^st March, 2017	50,000
Sports Material consumed during the year to be debited to Income & Expenditure A/c	84,000

Question 27:

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.

Answer:

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

Question 28:

How are the following dealt with while preparing the final accounts for the year ended 31st March, 2019?

RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT) for the year ended 31st March, 2019
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

Answer:

Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
Medicine	1,50,000
Add: Opening Stock	50,000
Less: Closing Stock	(75,000)
Less: Creditors in the beginning	(40,000)
Add: Creditors at the end	60,000	1,45,000

Balance Sheet as on March 31, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Medicines	40,000	Stock of Medicines	50,000

Balance Sheet as on March 31, 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Medicines	60,000	Stock of Medicines	75,000

Question 29:

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

Answer:

Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
Payment for Sports Material	71,000		Profit on Sale of Sports Material (26,000 – 20,000)	6,000
Add: Opening Stock	20,000
Less: Closing Stock	(25,000)
Less: Creditors in the beginning	(7,000)
Add: Creditors at the end	15,000
Less: Book Value of Material Sold	(20,000)	54,000

Balance Sheet as on March 31, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Sport Materials	7,000	Stock of Sport Materials	20,000

Balance Sheet as on March 31, 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Sport Materials	15,000	Stock of Sport Materials	25,000

Question 30:

From the following information of a Not-for-Profit Organisation, show the 'Sports Materials' item in the Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheets as at 31st March, 2018 and 31st March, 2019:

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

Payment to suppliers for Sports Materials during the year was ₹ 1,02,000. There were no cash purchases made.

Answer:

Extract of Income and Expenditure Account for the year ended March 31, 2019
Dr.				Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
Sports Material Consumed	92,800

Balance Sheet as on March 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Sports Materials	9,800	Stock of Sports Materials	6,200
		Advance paid for Sports Materials	11,000

Balance Sheet as on March 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Sports Materials	7,200	Stock of Spors Materials	4,800
		Advance paid for Sports Materials	19,000

Working Note:

Calculation of Sports Material Consumed

Particulars	Amount (₹)
Sports Material	1,02,000
Add: Opening Stock	6,200
Less: Closing Stock	(4,800)
Less: Creditors in the beginning	(9,800)
Add: Creditors at the end	7,200
Less: Advance at the end	(19,000)
Add: Advance in the beginning	11,000
	92,800

Alternatively, Sports Material consumed can also be calculated as.

Creditors for Sports Material Account
Dr.				Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
Balance b/d (Advance in the beginning)	11,000	Balance b/d (Creditors in the beginning)	9,800
Bank A/c (Amount paid for stationery)	1,02,000	Purchases A/c (Balancing Figure)	91,400
Balance c/d (Creditors at the end)	7,200	Balance c/d (Advance at the end)	19,000
	1,20,200		1,20,200

Sports Material Consumed = Opening Stock + Purchases – Closing Stock = 6,200 + 91,400 – 4,800 = Rs 92,800

Question 31:

The book value of furniture on 1st April, 2018 is ₹ 60,000. Half of this furniture is sold for ₹ 20,000 on 30th September, 2018. Depreciation is to be charged on furniture @ 10% p.a.
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.

Answer:

Furniture Account
Dr.						Cr.
Date	Particulars	Amount (₹)	Date	Particulars	Amount (₹)

2018			2018
April 01	Balance b/d		Sept.30	Depreciation (i) (for 6 Months)	1.500
	(i) 30,000		Sept.30	Bank (Sale) (i)	20,000
	(ii) 30,000	60,000	Sept.30	Income and Expenditure (Loss on Sale)	8,500
			2019
			March 31	Depreciation (ii) (for whole year)	3,000
				Balance c/d (ii) (30,000 – 3,000)	27,000
		60,000			60,000

Income and Expenditure Account for the year ended March 31, 2019
Dr.				Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
Depreciation on Furniture
(1,500 + 3,000)	4,500
Loss on Sale of Furniture	8,500

Working Note:

Calculation of Profit or Loss on Sale of Furniture

Particulars	Amount (₹)
Book Value of Furniture Sold as on April 01, 2018	30,000
Less: Depreciation (for 6 Months) (3,000 × 10% × 6/12)	1,500
Book Value of Furniture as on Sept. 30, 2018	28,500
Less: Sale Value	20,000
Loss on Sale of Furniture	8,500

Question 32:

Delhi Youth Club has furniture at a value of ₹ 2,20,000 in its book on 31st March, 2018. It sold old furniture, having book value of ₹ 20,000 as at 1st April , 2018 at a loss of 20% on 31st December, 2018. Furniture is to be depreciated @ 10% p.a. Furniture costing ₹ 1,50,000 was also purchased on 1st October, 2018.
Prepare Furniture Account for the year ended 31st March, 2019.

Answer:

Furniture Account
Dr.						Cr.
Date	Particulars	Amount (₹)	Date	Particulars	Amount (₹)

2018			2018
Apr. 01	Balance b/d		Dec. 31	Depreciation (ii) (for 9 Months)	1,500
	(i) 2,00,000		Dec. 31	Bank (Sale (ii))	14,800
	(ii) 20,000	2,20,000	Dec. 31	Income and Expenditure (Loss on Sale)	3,700
Oct. 01	Bank (iii)	1,50,000	2019
			Mar. 31	Depreciation
				(i) 20,000
				(iii) 7,500 (for 6 Months)	27,500
			Mar. 31	Balance c/d
				(i) 1,80,000
				(iii) 1,42,500	3,22,500
		3,70,000			3,70,000

Working Note:

Calculation of Profit or Loss on Sale of Furniture

Particulars	Amount (₹)
Book Value of Furniture (i) as on April 01, 2018	20,000
Less: Depreciation (for 9 Months) [20,000 × 10% × 9/12]	(1,500)
Book Value on December 31, 2018	18,500
Less: Loss on Sale of Furniture (18,500 × 20%)	(3,700)
Sale Value of Furniture	14,800

Question 33:

In the year ended 31st March, 2019, salaries paid amounted to ₹ 2,04,000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March, 2019 from the following additional information:

	₹
Prepaid Salaries on 31st March, 2018	24,000
Prepaid Salaries on 31st March, 2019	12,000
Outstanding Salaries on 31st March, 2018	18,000
Outstanding Salaries on 31st March, 2019	15,000

Answer:

Statement of Salaries for the year ended March 31, 2019
Particulars	Amount (₹)
Amount paid for Salaries	2,04,000
Add: Prepaid Salaries as on March 31, 2018	24,000
Less: Prepaid Salaries as on March 31, 2019	(12,000)
Less: Outstanding Salaries as on March 31, 2018	(18,000)
Add: Outstanding Salaries as on March 31, 2019	15,000
Salaries chargeable to Income and Expenditure Account	2,13,000

Question 34:

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.

Answer:

Income and Expenditure Account
Dr.	for the year ended 31st March, 2019					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
			Locker Rent Received	52,000
			Add: Outstanding at the end	6,300
			Add: Advance in the beginning	3,000
			Less: Outstanding in the beginning	4,600
			Less: Advance at the end	4,000	52,700

Question 35:

Prepare Income and Expenditure Account for the year ended 31st March, 2019 from the following:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Balanceb/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

Answer:

Income and Expenditure Account
Dr.	for the year ended 31st March, 2019				Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
Salaries		4,80,000	Subscriptions	9,00,000
Rent		50,000	Donation	10,000
Stationery		20,000
Loss on Sale of Old Furniture		10,000
Surplus (Balancing Figure)		3,50,000
		9,10,000		9,10,000

Question 36:

Prepare Income and Expenditure Account from the following Receipts and Payments Account of Delhi Nursing Society for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Balance b/d (Cash at Bank)	2,01,000	By Salaries of Nurses	65,600
	1,11,500		38,000
	27,000		20,000
	1,00,000		2,00,000
	1,56,000		84,000
	3,800		67,000
		(Cash at Bank)	1,24,700

	5,99,300		5,99,300

Donation of ₹ 10,000 received for Building Fund was wrongly included in the Subscriptions Account. A bill of medicines purchased during the year amounted to ₹12,800 was outstanding. Government Grant is not for a specific purpose.

Answer:

Book of Delhi Nursing Society Income and Expenditure Account for the year ended March 31, 2019
Dr.						Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Salaries of Nurses		65,600	Subscriptions	11,1500
Board, Laundry and Domestic Help		38,000	Less: Donation for Building	(10000)	1,01,500
Rent Rates and Taxes		20,000	Fees from Non-members		27,000
Expenses of Car		84,000	Municipal Grant		1,00,000
Drugs and Incidental Expenses	67,000		Interest		3,800
Add: Outstanding Expenses	12,800	79,800	Deficit (Balancing Figure)		55,100
		2,87,400			2,87,400

Question 37:

Following is the Receipts and Payments Account of You Bee Forty Club for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Balance b/d (cash)	1,50,000	By Salaries and Wages	1,60,000
To Subscriptions		By Office Expenses	35,000
2016-2017	60,000	By Sports Equipments	3,40,000
2018-2019	3,50,000	By Telephone Charges	24,000
To Donations	50,000	By Electricity Charges	32,000
To Entrance Fees	80,000	By Travelling Expenses	65,000
		By Balance c/d (Cash)	34,000

	6,90,000		6,90,000

Additional information :
(a) Outstanding Subscriptions for the year ended 31st March, 2019 – ₹ 55,000.
(b) Outstanding Salaries and Wages – ₹ 40,000.
(c) Depreciate Sports Equipments by 25%.
Prepare Income and Expenditure Account of the Club from the above particulars.

Answer:

Books of You Bee Forty Club
Income and Expenditure Account for the year ended March 31, 2019
Dr.						Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Salaries and Wages	1,60,000		Subscriptions	3,50,000
Add: Outstanding	40,000	2,00,000	Add: Outstanding for 2018-19	55,000	4,05,000
Office Expenses		35,000	Donations		50,000
Telephone Charges		24,000	Entrance Fees		80,000
Electricity Charges		32,000
Travelling Expenses		65,000
Depreciation on Sports Equipments (34,0000 × 25%)		85,000
Surplus (Balancing Figure)		94,000
		5,35,000			5,35,000

Question 38:

From the following Receipts and Payments Account of Jaipur Sports Club, prepare Income and Expenditure Account for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended March 31st March, 2019
Dr.					Cr.
Receipts		₹	Payments	₹
To Balance b/d		2,00,000	By Rent	60,000
To Entrance Fees:			(including ₹15,000 for 2017 – 18)
2017 – 18	10,000		By Insurance Premium	60,000
2018 – 19	50,000	60,000	(including ₹15,000 for 2019 – 20)
To Subscriptions:			By Sports Equipments	50,000
2017 – 18	10,000		By Furniture	60,000
2018 – 19 (90%)	90,000		(Purchased on 31st March, 2019)
2019 – 20	5,000	1,05,000	By 8% Fixed Deposit	1,20,000
To Life Membership Fees		20,000	(Made on 1st October, 2018)
To Donations		1,20,000	By Tournament Expenses	10,000
To Donation for Tournament		50,000	By Books	20,000
To Subscription for Governor's Party		15,000	By Newspapers	1,000
To Interest on 8% Fixed Deposit		2,400	By Printing and Stationery	19,000
To Sale of Old Newspapers		300	By Balance c/d	1,80,000
To Sale of Old Sports Materials		500
(Book Value ₹ 1,200)
To Locker Rent		6,800
(including ₹ 600 for 2017 – 18)

		5,80,000		5,80,000

Answer:

Income and Expenditure Account for the year ended March 31, 2019
Dr.						Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Rent	60,000		Entrance Fees (2018-19)		50,000
Less: For 2017-18	(15,000)	45,000	Subscription 2018-19	90,000
			Add: Outstanding for 2018-19 (9,000 × 10/9 )	10,000	1,00,000
Insurance Premium	60,000		Donations		1,20,000
Less: For 2019-20	(15,000)	45,000	Interest on Fixed Deposits	2,400
Printing and Stationery		20,000	Add: Accrued Interest	2,400	4,800
Loss on Sale of Sports Material (1200 -500)		700	Sale of Old Newspapers		300
Surplus (Balancing Figure)		1,70,600	Locker Rent	6,800
			Less: For 2017-18	600	6200
		2,81,300			2,81,300

Working Notes:

Calculation of Interest Accrued on investment

Interest on Investment for 6 Months (1,20,000 × 8% × 6/12)	4,800
Less: Interest Received₹	2,400
Accrued Interest on Investment	2,400

Question 39:

Following is the information given in respect of certain items of a Sports Club. Show these items in the Income and Expenditure Account and the Balance Sheet of the Club as at 31st March, 2019:

Particulars	₹
Sports Fund as on 1st April, 2018	3,50,000
Sports Fund Investments	3,50,000
Interest on Sports Fund Investments	40,000
Donations for Sports Fund	1,50,000
Sports Prizes awarded	1,00,000
Expenses on Sports Events	40,000
General Fund	8,00,000
General Fund Investments	8,00,000
Interest on General Fund Investments	80,000

Answer:

In the books of …. Sports Club
Dr.	Income and Expenditure A/c for the year ended 31^st March, 2019				Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
			By Interest on General Fund Investments	80,000

Note: General Fund will be shown on the liabilities side and general fund investments will be shown on the asset side of the balance sheet as on 31^st March, 2019.

Working Notes:

1)

Calculation of Sports Fund Balance	Amount (₹)
Sports Fund as on 1^st April 2018	3,50,000
Add: Donations for Sports Fund	1,50,000
Interest on Sports Fund Investment	40,000
Less: Sports Prizes Awarded	1,00,000
Expenses on Sports Fund	40,000
Balance of Sports Fund to be shown on the Liabilities side of the Balance Sheet as at 31^st March, 2019	4,00,000

Question 40:

Prepare Income and Expenditure Account from the following particulars of Youth Club for the year ended on 31st March, 2018:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018
Dr.					Cr.
Receipts		₹	Payments	₹
To Balance b/d (Cash)		32,500	By Salaries	31,500
To Subscription:			By Postage	1,250
2016-17	1,500		By Rent	9,000
2017-18	60,000		By Printing and Stationery	14,000
2018-19	1,800	63,300	By Sports Material	11,500
To Donations (Billiards Table)		90,000	Bu Miscellaneous Expenses	3,100
To Entrance Fees		1,100	By Furniture (1st October, 2017)	20,000
To Sale of Old Magazines		450	By 10% Investment (1st October, 2017)	70,000
			By Balance c/d (31st March, 2018)	27,000


		1,87,350		1,87,350

Additional Information:
(i) Subscription outstanding as at 31st March, 2018 ₹ 16,200.
(ii) ₹ 1,200 is still in arrears for the year 2016-17 for subscription.
(iii) Value of sports material at the beginning and at the end of the year was ₹ 3,000 and ₹ 4,500 respectively.
(iv) Depreciation to be provided @ 10% p.a. on furniture.

Answer:

In the books of Youth Club
Dr.	Income and Expenditure A/c for the year ended 31^st March, 2018					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
To Salaries		31,500	By Subscriptions	60,000
To Postage		1,250	Add: Outstanding Subscriptions	15,000	75,000
To Rent		9,000	(16,200 – 1,200)
To Printing and Stationery		14,000	By Entrance fees		1,100
To Sports Material Consumed (WN1)		10,000	By Sale of Old Magazines		450
To Miscellaneous Expenses		3,100	By Interest Accrued on Investments		3,500
To Depreciation on Furniture (20,000 × 10/100 × 6/12)		1,000	(70,000 × 10/100 × 6/12)
To Surplus- Excess of Income over Expenditure		10,200

		80,050			80,050

Note: If nothing is mentioned, Entrance fee is to be treated as a revenue receipt. Working Notes: 1)

Sports Material Consumed	=	Opening Stock + Purchases – Closing Stock
	=	₹ (3,000 + 11,500 – 4,500) = ₹ 10,000

Question 41:

Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Balance b/d (Cash)	18,000	By Building	4,00,000
To Donations for Building	4,50,000	By Project Expenses	90,000
To Donations	50,000	(Young Talent Search and Development)
To Government Grant	1,00,000	By Match Expenses	90,000
(Young Talent Search and Development)		By Furniture	1,21,000
To Life Membership Fees	40,000	By 10% Investments	1,60,000
To Match Fund	80,000	(Purchased on 1st July, 2018)
To Subscriptions	52,000	By Salaries	70,000
To Locker Rent	4,000	By Insurance	3,500
To Interest on Investments	10,000	By Sundry Expenses	4,700
To Sale of Furniture	1,00,000	By Closing c/d (Cash)	4,800
(Book value ₹ 80,000)		By Bank (Young Talent	10,000
To Entrance Fees	50,000	Search and Development


	9,54,000		9,54,000

Additional Information:
(i) During the year ended 31st March, 2019, the club had 550 members and each paying an annual subscription of ₹ 100.
(ii) Salaries Outstanding as at 1st April, 2018 were ₹ 10,000 and as at 31st March, 2019 were ₹ 5,000.
Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2019.

Answer:

Books of Delhi Football Club
Income and Expenditure Account for the year ended March 31, 2019
Dr.						Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Salaries	70,000		Subscriptions (550 members × Rs 100 each)		55,000
Add: Outstanding at the end	5,000		Entrance Fees		50,000
Less: Outstanding in the beginning	(10,000)	65,000
Insurance		3,500	Donations		50,000
Sundry Expenses		4,700	Locker Rent		4,000

Match Expenses	90,000		Profit on Sale of Furniture (1,00,000 - 80,000)		20,000
Less: Match Fund	(80,000)	10,000	Interest on Investment	10,000
Surplus (Balancing Figure)		1,07,800	Add: Accrued Interest	2,000	12,000
		1,91,000			1,91,000

Working Notes:

Calculation of Interest Accrued on Investment

Interest on Investment for 9 Months (1,60,000 × 10% × 9/12)	12,000
Less: Interest Received	(10,000)
Accrued Interest on Investment	2,000

Question 42:

Following is the summary of cash transactions of the Royal Club for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.						Cr.
Receipts		₹	Payments		₹
To Balance b/d			By Rent		16,800
Cash in Hand	10,000		By Wages		24,500
Cash at Bank	21,900	31,900	By Electricity Charges		7,200
To Entrance Fees		25,500	By Honorarium		43,500
To Subscriptions		1,60,000	By Books		21,300
To Donations		16,500	By Office Expenses		45,000
To Life Membership Fees		25,000	By 3% Fixed Deposit		80,000
To Profit on Entertainment		5,600	(1st October, 2018)
			By Balance c/d:		24,200
			By Balance c/d		2,000
			Cash in Hand	2,000
			Cash at Bank	24,200	26,200
		2,64,500			2,64,500

In the beginning of the year, the club possessed Books of ₹ 2,00,000 and Furniture of ₹ 85,000. Subscriptions in arrears in the beginning of the year amounted to ₹ 3,500 and at the end of the year ₹ 4,500 and six months Rent was due both in the beginning of the year and at the end of the year.
Prepare Income and Expenditure Account of the club for the year ended 31st March, 2019 and its Balance Sheet as at that date after writing off ₹ 5,000 and ₹ 11,300 on Furniture and books respectively.

Answer:

Books of Royal Club
Income and Expenditure Account for the year ended March 31, 2019
Dr.						Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Rent	16,800		Entrance Fees		25,500
Less: Outstanding Rent in the beginning (WN1)	8,400		Subscriptions	1,60,000
Add: Outstanding Rent at the end	8,400	16,800	Less: Outstanding in the beginning	3,500
Wages		24,500	Add: Outstanding at the end	4,500	1,61,000
Lighting Charge		7,200	Donations		16,500
Lecturer’s Fee		43,500	Profit on Entertainment		5,600
Office Expenses		45,000	Interest Accrued on Fixed Deposits		1,200
Depreciation on:			(80,000 × 3% × 6/12)
Books	11,300
Furniture	5,000	16,300
Surplus (Balancing Figure)		56,500
		2,09,800			2,09,800

Working Notes:

1)

$Rent space received space in space Cash space left parenthesis including space 6 space months space rent space of space the space previous space year right parenthesis equals ₹ 16 comma 800 Rent space due space for space straight a space 6 space months space will space be equals ₹ open parentheses 16 comma 800 cross times 6 over 12 close parentheses equals ₹ 8 comma 400$

Balance Sheet as on April 01, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Outstanding Rent	8,400	Books	2,00,000
Capital Fund (Balancing Figure)	3,12,000	Furniture	85,000
		Subscriptions Outstanding	3,500
		Cash and Bank	31,900
	3,20,400		3,20,400

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Outstanding Rent		8,400	Subscriptions Outstanding		4,500
Capital Fund	3,12,000		Books	2,00,000
Add: Life Membership Fees	25,000		Add: Purchases	21,300
Add: Surplus	56,500	3,93,500	Less: Deprecation	11,300	2,10,000
			Furniture	85,000
			Less: Depreciation	5,000	80,000
			Fixed Deposits	80,000
			Add: Accrued interest	1,200	81,200
			Cash at Bank		24,200
			Cash in Hand		2,000
		4,01,900			4,01,900

Question 43:

From the following Receipts and Payments Account of Social Club and the information supplied, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March ,2019
Dr.				Cr.
Receipts		(₹)	Payments	(₹)
To Balance b/d		7,000	By Salaries	28,000
To Subscriptions:			By General Expenses	6,000
2017-18	5,000		By Electricity Charges	4,000
2018-19	20,000		By Books	10,000
2019-20	4,000	29,000	By Newspapers	8,000
To Hire of Ground		14,000	By Balance c/d	4,000
To Surplus from Entertainment Events		8,000
To Sale of Old Newspapers		2,000

		60,000		60,000

(a) The club has 50 members each paying an annual subscription of ₹ 500. Subscriptions Outstanding on 31st March,2018 were ₹ 6,000.
(b) On 31st March, 2019, Salaries Outstanding amounted to ₹ 2,000. Salaries paid in the year ended 31st March, 2019 included ₹ 6,000 for the year ended 31st March, 2018.
(c) On 1st April, 2018, the club owned Building valued at ₹ 2,00,000; Furniture ₹ 20,000 and Books ₹ 20,000.
(d) Provide depreciation on Furniture at 10%.

Answer:

In the books of New City Club Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
Salaries	28,000		Subscription (50 members × Rs 500 each)	25,000
Add: Outstanding for 2018-19	2,000		Rent Received from the use of hall	14,000
Less: Outstanding for 2017-18	6,000	24,000	Profit from Entertainment	8,000
General Expenses		6,000	Sale of Old Newspapers	2,000
Electricity Charges		4,000
Newspapers		8,000
Depreciation on Furniture (2,000 × 10%)		2,000
Surplus (Balancing Figure)		5,000
		49,000		49,000

Balance Sheet as on April 01, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Salaries Outstanding	6,000	Subscriptions Outstanding	6,000
Capital Fund	2,47,000	Building	2,00,000
(Balancing Figure)		Furniture	20,000
		Books	20,000
		Cash and Bank	7,000
	2,53,000		2,53,000

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Advance Subscription		4,000	Subscription Outstanding
Salaries Outstanding		2,000	For 2018-19 (25,000 - 20,000)	5,000
Capital Fund	2,47,000		For 2017-18 (6,000 - 5,000)	1,000	6,000
Add: Surplus	5,000	2,52,000	Building		2,00,000
			Furniture	20,000
			Less: 10% Depreciation	2,000	18000
			Books	20,000
			Add: Purchases	10,000	30,000
			Cash and Bank		4,000
		2,58,000			2,58,000

Question 44:

From the following Receipts and Payments Account and additional information given below, prepare Income and Expenditure Account and Balance Sheet of Rural Literacy Society as on 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31 st March, 2019
Dr.				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To Balance b/d:			By General Expenses	32,000
Cash in Hand		40,000	By Newspaper	18,500
Cash at Bank		1,55,500	By Electricity	30,000
To Subscriptions:			By Fixed Deposit with Bank	1,80,000
2017-18	12,000		(On 30th September, 2018 @ 10% p.a.)
2018-19	2,65,000		By Books	70,000
2019-20	5,000	2,82,000	By Salary	36,000
To Legacy		12,500	By Rent	65,000
To Government Grant		1,20,000	By Postage Charges	3,000
To Sale of Old Furniture		37,000	By Furniture (purchased)	1,05,000
(Book value ₹ 50,000)			By Balance c/d:
To Interest received on Fixed Deposit		4,500	Cash in Hand	30,000
			Cash at Bank	82,000
		6,51,500		6,51,500

Additional information:
(i) Subscription outstanding as on 31st March, 2018 ₹ 20,000 and on 31st March, 2019 ₹ 15,000.
(ii) On 31st March, 2019, salary outstanding ₹ 6,000 and one month rent paid in advance.
(iii) On 1st April, 2018, society owned furniture ₹ 1,20,000 and books ₹ 50,000.

Answer:

Income and Expenditure Account for the year ending March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
General Expenses		32,000	Subscriptions	2,65,000
Newspaper		18,500	Add: Current O/s	7,000	2,72,000
Electricity		30,000	Legacy		12,500
Salary	36,000		Government Grant		1,20,000
Add: Outstanding	6,000	42,000	Interest on Fixed Deposit		9,000
Rent	65,000		(18,000 @ 10% for 6 months)
Less: Prepaid	5,000	60,000
Postage Charges		3,000
Loss on Sale of Furniture		13,000
Surplus		2,15,000
		4,13,500			4,13,500

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital Fund			Books	50,000
Opening Balance	3,85,500		Add: Purchases	70,000	1,20,000
Add: Surplus	2,15,000	6,00,500	Prepaid Rent		5,000
Salary Outstanding		6,000	Furniture	1,20,000
Subscription Received in Advance		5,000	Add: Purchases	1,05,000
			Less: Sale	50,000	1,75,000
			Fixed Deposit	1,80,000
			Add: Accrued Interest	4,500	1,84,500
			Subscriptions Outstanding		15,000
			Cash		30,000
			Bank		82,000
		6,11,500			6,11,500

Working Notes

WN1: Ascertainment of Capital Fund

Balance Sheet as on March 31, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund	3,85,500	Subscriptions Outstanding	20,000
		Books	50,000
		Furniture	1,20,000
		Cash	40,000
		Bank	1,55,500
	3,85,500		3,85,500

Question 45:

Glaxo Club's Balance Sheet as at 1st April, 2018 was as under:

Liabilities	(₹)	Assets	(₹)
Capital Fund	2,00,000	Sports Equipments	50,000
Tournament Fund	60,000	Grounds	1,20,000
Subscriptions in Advance	6,000	Billiards Tables	60,000
Salaries Unpaid	11,000	Subscriptions Outstanding	8,000
		Cash and Bank Balances	39,000


	2,77,000		2,77,000

Receipts and Payments Account for the year ended 31st March, 2019 was:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.			Cr.
Receipts	(₹)	Payments	(₹)
To Opening Balance	39,000	By Wages and Salaries	60,000
To Subscriptions	1,81,000	By Upkeep of Grounds	10,000
To Sale of Old Materials	1,500	By Stationery	15,000
To Sale of Sports Equipment	6,000	By Audit Fee	2,000
(Book value ₹ 10,000)		By Expenses on Tournament	65,000
To Entrance Fees	2,000	By Sports Equipments	20,000
To Life Membership Fees	50,000	By 5% Investments	40,000
To Donations for Tournament	20,000	(On 1st October, 2018)
		By Cash and Bank Balances	87,500
	2,99,500		2,99,500

Subscriptions still to be received are ₹ 5,500 but subscriptions already received include ₹ 4,000 for next year. Salaries still unpaid are ₹ 6,000. Sports Equipments are now valued at ₹ 45,000. Prepare Income and Expenditure Account and the Balance Sheet, after charging 10% depreciation on Billiards Tables.

Answer:

In the books of Glaxo Club
Dr.	Income and Expenditure A/c for the year ended 31^st March, 2019					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
To Loss on Sale of Sports Equipment		4,000	By Subscriptions	1,81,000
To Sports Equipments used (WN1)		15,000	Add: Advance Subscriptions (Prev. Year)	6,000
To Wages and Salaries [60,000 – 5,000 (Prev. Year)]		55,000	Less: Advance Subscriptions (Next Year)	4,000
To Upkeep of Ground		10,000	Subscriptions Received (Prev. Year)	2,500	1,80,500
To Stationery		15,000	By Sale of Old Materials		1,500
To Audit Fees		2,000	By Entrance Fees		2,000
To Depreciation on Billiards Table (60,000 × 10/100)		6,000	By Interest Accrued on 5% Investments		1,000
To Surplus- Excess of Income over Expenditure		78,000	(40,000 × 5/100 × 6/12)

		1,85,000			1,85,000

Note: If nothing is mentioned, Entrance fee is to be treated as a revenue receipt.

Working Notes:

Sports Material Consumed	=	Opening Stock + Purchases – Closing Stock - Sales
	=	₹ (50,000 + 20,000 – 45,000 – 10,000) = ₹ 15,000

Balance Sheet of Glaxo Club
as at 31^st March, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital Fund	2,00,000		Sports Equipment		45,000
Add: Life Membership fee	50,000		Grounds		1,20,000
Add: Surplus	78,000	3,28,000	Billiards Table	60,000
			Less: Depreciation	6,000	54,000
Tournament Fund	60,000
Add: Donations	20,000		5% Investments		40,000
Less: Expenses on Tournament	65,000	15,000	Accrued Interest on Investments		1,000
			Subscriptions Outstanding		5,500
Subscriptions Received in Advance		4,000	Cash and Bank Balances		87,500
Salaries Unpaid		6,000

		3,53,000			3,53,000

Question 46:

From the following Receipts and Payments Account and additional information relating to the star Cricket Club, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT
Dr.					Cr.
Receipts		(₹)	Payments		(₹)
To Balance b/d:			By Upkeep of Fields		20,000
Cash in Hand 1st April, 2018	10,000		By Tournament Expenses		7,000
Cash at Bank as per Pass Book	20,000	30,000	By Rates and Insurance		2,000
To Members' Subscriptions		50,000	By Telephone		500
To Admission Fee		3,000	By Stationery		1,000
To Sale of Old Bats, etc.		500	By General Charges		500
To Hire of Ground		3,000	By Secretary's Honorarium		2,000
To Subscriptions for Tournament		10,000	By Bats, Balls, etc.		7,000
To Donations		75,000	By Balance c/d:
To Legacy Donations		25,000	Cash in Hand 31st March, 2019	1,00,000
			Cash at Bank as per Pass Book	56,500	1,56,500
		1,96,500			1,96,500

Assets on 1st April, 2018:		₹
	Stock of Bats and Balls	15,000
	Stationery	2,000
	Subscriptions Due	5,000

Subscriptions due on 31st March, 2019 amounted to ₹ 7,500. Write off 50% of Bats, Balls (not considering sale) and 25% of Stationery.

Answer:

In the books of Star Cricket Club
Dr.	Income and Expenditure A/c for the year ended 31^st March, 2019				Cr.
Expenditure		Amount (₹)	Income			Amount (₹)
To Upkeep of fields		20,000	By Member’s Subscriptions	50,000
To Rates and Insurance		2,000	Add: Outstanding Subscriptions (7,500 – 5,000)	2,500		52,500
To Telephone		500	By Admission fee			3,000
To General Charges		500	By Donations			75,000
To Secretary’s Honorarium		2,000	By Legacy Donations			25,000
To Bats and Balls written off (WN1)		11,000	By Hire of Ground			3,000
To Stationery written off (WN2)		750	By Sale of Old bats, etc.			500
To Surplus- Excess of Income over Expenditure		1,22,250

		1,59,000				1,59,000

Working Notes:
1)

Total Amount of Bats and Balls	=	Opening Stock + Purchases
	=	₹ (15,000 + 7,000) = ₹ 22,000
Bats and Balls to be written off	=	₹ (22,000×50/100) = ₹ 11,000

2)

Total Amount of Stationery	=	Opening Stock + Purchases
	=	₹(2,000 + 1,000)= ₹3,000
Stationery to be written off	=	₹(3,000×25/100)= ₹750

3)

Balance Sheet of Star Cricket Club
as at 1^st April, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund (Balancing Figure)	52,000	Bats and Balls	15,000
		Stationery	2,000
		Subscriptions due	5,000
		Cash in Hand	10,000
		Cash at Bank	20,000

	52,000		52,000

Balance Sheet of Star Cricket Club
as at 31^st March, 2019
Liabilities			Amount (₹)	Assets		Amount (₹)
Capital Fund (WN3)	52,000			Stock of Bats and Balls	15,000
Add: Surplus	1,22,250		1,74,250	Add: Purchases	7,000
				Less: Written off	11,000	11,000
Subscriptions for Tournament		10,000
Less: Tournament Expenses		7,000	3,000	Stationery	2,000
				Add: Purchases	1,000
				Less: Written off	750	2,250

				Subscriptions Outstanding		7,500
				Cash in Hand		1,00,000
				Cash at Bank		56,500

			1,77,250			1,77,250

Question 47:

From the following Receipts and Payments Account of Mumbai Theatre Club, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT
Dr.			Cr.
Receipts	(₹)	Payments	(₹)
To Balance b/d:		By Salary	20,000
Cash and Bank	1,40,000	By Repair Expenses	5,000
To Donations	50,000	By Furniture	60,000
To Subscriptions	1,20,000	By Miscellaneous Expenses	5,000
To Entrance Fees	10,000	By Investments	60,000
To Interest on Investments	1,000	By Insurance Premium	2,000
To Interest Received from Bank	4,000	By Billiard Table	80,000
To Sale of Old Newspapers	1,500	By Paper, lnk, etc.	1,500
To Sale of Drama Tickets	10,500	By Drama Expenses	5,000
		By Balance c/d:
		Cash and Bank	98,500
	3,37,000		3,37,000

Additional Information:
(i) Subscriptions in arrear for the year ended 31st March, 2019 ₹ 9,000 and subscriptions in advance for the year ending 31st March, 2020 ₹ 3,500.
(ii) Insurance Premium outstanding ₹ 400.
(iii) Miscellaneous expenses prepaid ₹ 900.
(iv) 8% interest has accrued on investment for five months.
(v) Billiard Table costing ₹ 3,00,000 was purchased during last year and ₹ 2,20,000 were paid for it.

Answer:

In the books of Mumbai Theatre Club
Dr.	Income and Expenditure A/c for the year ended 31^st March, 2019					Cr.
Expenditure			Amount (₹)	Income			Amount (₹)
To Salary			20,000	By Donations			50,000
To Repair Expenses			5,000	By Subscriptions	1,20,000
To Miscellaneous Expenses		5,000		Add: Subscriptions Outstanding	9,000
Less: Prepaid Expenses		900	4,100	Less: Advance Subscriptions	3,500		1,25,500
To Insurance Premium		2,000		By Entrance Fees			10,000
Add: Outstanding Premium		400	2,400	By Interest on Investments	1,000
To Paper, Ink, etc.			1,500	Add: Accrued Interest (WN1)	2,000		3,000
To Drama Expenses			5,000	By Interest received from Bank			4,000
To Surplus- Excess of Income over Expenditure			1,66,500	By Sale of Old Newspapers			1,500
				By Sale of Drama Tickets			10,500

			2,04,500				2,04,500

Working Notes: 1)

Interest on Investments Accrued for 5 months	=	₹ (60,000 × 8/100 × 5/12)
	=	₹ 2,000

2)

Balance Sheet of Mumbai Theatre Club
as at 1^st April, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund (Balancing Figure)	3,60,000	Billiard Table	3,00,000
		Cash and Bank	1,40,000
Creditors for Billiard Table	80,000

	4,40,000		4,40,000

Balance Sheet of Mumbai Theatre Club
as at 31^st March, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital Fund (WN2)	3,60,000		Furniture	60,000
Add: Surplus	1,66,500	5,26,500	Investments	60,000
			Billiard Table	3,00,000
Outstanding Insurance Premium		400	Prepaid Miscellaneous Expenses	900
Advance Subscriptions		3,500	Accrued Interest on Investments	2,000
			Outstanding Subscriptions	9,000
			Cash and Bank	98,500

		5,30,400		5,30,400

Question 48:

Following Receipts and Payments Account was prepared from the Cash Book of Delhi Charitable Trust for the year ending 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ending 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Balance b/d:		By Charity	1,15,000
Cash in Hand	1,15,000	By Rent and Taxes	32,000
Cash at Bank	1,26,000	By Salary	60,000
To Donations	90,000	By Printing	6,000
To Subscriptions	4,28,000	By Postage	3,000
To Legacies Donations	1,80,000	By Advertisements	45,000
To Interest on Investment	45,000	By Insurance	20,000
To Sale of old Newspaper	2,000	By Furniture	2,16,000
		By Investment	2,30,000
		By Balance c/d:
		Cash in Hand	99,000
		Cash at Bank	1,60,000

	9,86,000		9,86,000

Prepare Income and Expenditure Account for the year ended 31st March, 2019, and Balance Sheet as on that date after the following adjustments:
(i) Insurance premium was paid for insurance taken w.e.f. 1st July, 2018.
(ii) Interest on investment ₹ 11,000 accrued was not received.
(iii) Rent ₹ 6,000; Salary ₹ 9,000 and advertisement expenses ₹ 10,000 outstanding as on 31st March, 2019.
(iv) Legacy Donation is towards construction of Library Block.

Answer:

Income and Expenditure Account for the year ending March 31, 2019
Dr.				Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
Charity		1,15,000	Donation	90,000
Rent	32,000		Subscription	4,28,000
Add: Outstanding	6,000	38,000	Interest on Investments (45,000 + 11,000)	56,000
Salary	60,000		Sale of Old Newspapers	2,000
Add: Outstanding	9,000	69,000
Advertisement	45,000
Add: Outstanding	10,000	55,000
Insurance	20,000
Less: Prepaid	5,000	15,000
Printing		6,000
Postage		3,000
Surplus		2,75,000
		5,76,000		5,76,000

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital Fund			Cash		99,000
Opening Balance	2,41,000		Bank		1,60,000
Add: Legacy	1,80,000		Prepaid Insurance		5,000
Add: Surplus	2,75,000	6,96,000	Furniture		2,16,000
Rent Outstanding		6,000	Investment	2,30,000
Salary Outstanding		9,000	Add: Accrued Interest	11,000	2,41,000
Adv. Exp. Outstanding		10,000
		7,21,000			7,21,000

Working Notes

WN1: Ascertainment of Capital Fund

Balance Sheet as on March 31, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund	2,41,000	Cash	1,15,000
		Banks	1,26,000
	2,41,000		2,41,000

Question 49:

Given Below is the Receipts and Payments Account of a Mayur Club for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT
Dr.				Cr.
Receipts		(₹)	Payments	(₹)
To Balance b/d		1,02,500	By Salaries	60,000
To Subscriptions:			By Expenses	7,500
2017-18	4,000		By Drama Expenses	45,000
2018-19	2,05,000		By Newspapers	15,000
2019-20	6,000	2,15,000	By Municipal Taxes	4,000
To Donations		54,000	By Charity	35,000
To Proceeds of Drama Tickets		95,000	By Investments	2,00,000
To Sale of Waste Paper		4,500	By Electricity Charges	14,500
			By Balance c/d	90,000

		4,71,000		4,71,000

Prepare club's Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date after taking the following information into account:
(i) There are 500 members, each paying an annual subscription of ₹ 500, ₹ 5,000 are still in arrears for the year ended 31st March, 2018.
(ii) Municipal Taxes amounted to ₹ 4,000 per year is paid up to 30th June and ₹ 5,000 are outstanding of salaries.
(iii) Building stands in the books at ₹ 5,00,000.
(iv) 6% interest has accrued on investments for five months.

Answer:

Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Municipal Taxes	4,000		Subscription (500 members × Rs 500)		2,50,000
Add: Prepaid in 2017-18	1,000		Interest Accrued on Investment $(2, 00, 000 \times \frac{6}{100} \times \frac{5}{12})$		5,000
Less: Prepaid in 2018-19	1,000	4,000	Profit from Drama:
Salaries	60,000		Proceeds	95,000
Add: Outstanding	5,000	65,000	Less: Drama Expenses	45,000	50,000
Expenses		7,500	Sale of Waste Paper		4,500
Newspapers		15,000	Donations		54,000
Charity		35,000
Electricity Charges		14,500
Surplus (Balancing Figure)		2,22,500
		3,63,500			3,63,500

Balance Sheet as on April 01, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
		Subscriptions Outstanding (4,000 + 5,000)	9,000
Capital Fund (Balancing Figure)	6,12,500	Municipal Taxes Prepaid	1,000
		Building	5,00,000
		Cash and Bank	1,02,500
	6,12,500		6,12,500

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Advance Subscription		6,000	Subscriptions Outstanding
Salaries Outstanding		5,000	For 2018-19 (2,50,000 – 2,05,000)	45,000
			For 2017-18	5,000	50,000
Capital Fund	6,12,500		Prepaid Municipal Taxes		1,000
Add: Surplus	2,22,500	8,35,000	Building		5,00,000
			Investments	2,00,000
			Add: Accrued Interest	5,000	2,05,000
			Cash at Bank		90,000
		8,46,000			8,46,000

Question 50:

From the following Receipts and Payments Account of Kapil Dev Club and from the given additional information, prepare Income and Expenditure Account for the year ending 31st December, 2019 and the Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹

To Balance b/d	1,90,000	By Salaries	3,30,000
To Subscriptions	6,60,000	By Sports Material	4,00,000
To Interest on Investment	40,000	By Balance c/d	1,60,000
@ 8% p.a. for full year
	8,90,000		8,90,000

Additional Information:
(i) The club had received ₹ 20,000 for subscription in 2017-18 for 2018-19.
(ii) Salaries had been paid only for 11 months.
(iii) Stock of sports materials on 31st March, 2018 was ₹ 3,00,000 and on 31st March, 2019 ₹ 6,50,000.

Answer:

Books of Kapil Dev Club
Income and Expenditure Account for the year ending 31st March,2019
Dr.					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Salary	3,30,000		Subscription	6,60,000
Add: Outstanding Salaries (WN3)	30,000	3,60,000	Add: Advance in the beginning	20,000	6,80,000
Sports Materials Consumed		50,000	Interest on Investments		40,000
Surplus (Excess of Income over Expenditure)		3,10,000
		7,20,000			7,20,000

Balance Sheet as on 31st March,2019
Liabilities		Amount (₹)	Assets	Amount (₹)

Outstanding Salaries		30,000	Investments (WN4)	5,00,000
Capital Fund	9,70,000		Stock of Sports Material	6,50,000
Add: Surplus	3,10,000	12,80,000	Cash	1,60,000

		13,10,000		13,10,0000

Working Notes:

WN1: Calculation of amount of Sports Material Consumed:

Particulars	Amount (₹)
Sports Material Purchased	4,00,000
Add: Opening Stock of Sports Material	3,00,000
Less: Closing Stock of Sports Material	6,50,000

Sports Material Consumed	50,000

WN2: Calculation of Capital Fund

Balance Sheet as on April 01,2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Subscription Received in Advance	20,0000	Investments	5,00,000
Capital Fund (Balancing Figure)	9,70,000	Stock of Sports Material	3,00,000
		Cash	1,90,000

	9,90,000		9,90,0000

WN3: Calculation of Outstanding Salaries

Outstanding Salaries = $3, 30, 000 \times \frac{1}{11} = 30, 000$

WN4: Calculation of Investments

Investments = $40, 000 \times \frac{100}{8} = 5, 00, 000$

Question 51:

From the following information and Receipts and Payments Account of Delhi Medical Society, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date.

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	(₹)	Payments	(₹)
To Balance b/d	31,900	By Rent	16,800
To Entrance Fees	5,500	By Wages	24,500
To Subscriptions	1,80,000	By Lighting Charges	7,200
To Donations	16,500	By Books	24,800
To Life Membership Fees	25,000	By Medicines (Polio Eradication Project)	1,00,000
To Government Grant (Polio Eradication Project)	2,00,000	By Salaries to Doctors (Polio Eradication Project)	80,000
To Proceeds of Seminar	23,200	By Office Expenses	45,000
To Interest on Deposits	2,400	By 8% Fixed Deposits	1,20,000
		(On 1st October, 2018)
		By Seminar Expenses	20,200
		By Cash in Hand	26,000
		By Bank A/c (Polio Eradication Project)	20,000

	4,84,500		4,84,500

Other information:
On 31st March, 2018, the Club possessed books of ₹ 2,00,000 and Furniture of ₹ 85,000. Provide depreciation on these assets @ 10% including the purchases during the year.
Subscriptions in arrears in the beginning of the year amounted to ₹ 3,500 and at the end of the year ₹ 5,500 were outstanding.
The Club paid three months' rent in advance both in the beginning and at the end of the year.

Answer:

Books of Delhi Medical Society Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Rent	16,800		Entrance Fees		5,500
Add: Advance in the beginning	4,200		Subscriptions	1,80,000
Less: Advanced at the end	(4,200)	16,800	Add: Arrears at the end	5,500
Wages		24,500	Less: Arrears in the beginning	(3,500)	1,82,000
Lighting Charges		7,200	Donations		16,500
Office Expenses		45,000	Interest on Deposits	2,400
Depreciation on:			Add: Accrued Interest	2,400	4,800
Furniture	8,500		Profit from Seminar:
Books	22,480	30,980	Proceeds	23,200
Surplus (Balancing Figure)		87,320	Less: Expenses	(20,200)	3,000
		2,11,800			2,11,800

Balance Sheet as on April 01, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
		Advance Rent	4,200
		Subscription-in-Arrears	3,500
		Books	2,00,000
Capital Fund (Balancing Figure)	3,24,600	Furniture	85,000
		Cash in Hand	31,900
	3,24,600		3,24,600

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
			Subscription-in-Arrears		5,500
			Advance Rent		4,200
			Books	2,00,000
Government Grant	2,00,000		Add: Purchase	24,800
Less: Medicines	1,00,000			2,24,800
Less: Salaries	80,000	20,000	Less: 10% Depreciation	(22,480)	2,02,320
Capital Fund	3,24,600		Furniture	85,000
Add: Surplus	87,320		Less: 10% Depreciation	8,500	76,500
Add: Life Membership	25,000	4,36,920	Cash in Hand		26,000
			Cash at Bank		20,000
			8% Fixed Deposit	1,20,000
			Add: Accrued Interest	2,400	1,22,400
		4,56,920			4,56,920

Working Note:

Calculation of Interest Accrued on Fixed Deposits

Interest on Fixed Deposits (1,20,000 × 8% × 6/12)	4,800
Less: Interest Received	(2,400)
Interest Accrued on Fixed Deposits	2,400

Question 52:

Receipts and Payments Account of Shankar Sports Club is given below for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	(₹)	Payments	(₹)
To Cash in Hand (Opening)	2,600	By Rent	18,000
To Entrance Fee	3,200	By Wages	7,000
To Donation for Building	23,000	By Billiard Table	14,000
To Locker Rent	1,200	By Furniture	10,000
To Life Membership Fee	7,000	By Interest	2,000
To Profit from Entertainment	3,000	By Postage	1,000
To Subscription	40,000	By Salary	24,000
		By Cash In Hand (Closing)	4,000


	80,000		80,000

Prepare Income and Expenditure Account and Balance Sheet with the help of following information:
Subscription outstanding on 31st March, 2018 is ₹ 1,200 and ₹ 2,300 on 31st March, 2019; opening stock of postage stamps is ₹ 300 and closing stock is ₹ 200; Rent ₹ 1,500 related to the year ended 31st March, 2018 and ₹ 1,500 is still unpaid. On 1st April, 2018 the club owned furniture ₹ 15,000, Furniture valued at ₹ 22,500 on 31st March, 2019. The club has a loan of ₹ 20,000 (@ 10% p.a.) which was taken, in year ended 31st March, 2018.

Answer:

In the books of Shankar Sports Club
Dr.	Income and Expenditure A/c for the year ended 31^st March, 2019				Cr.
Expenditure		Amount (₹)	Income			Amount (₹)
To Rent		18,000	By Entrance Fess			3,200
To Wages		7,000	By Locker Rent			1,200
To Interest		2,000	By Profit from Entertainment			3,000
To Postage Consumed (WN1)		1,100	By Subscriptions	40,000
To Depreciation on Furniture (WN2)		2,500	Less: Outstanding Sub. (31^st March, 2018)	1,200
To Salary		24,000	Add: Outstanding Sub. (31^st March, 2019)	2,300		41,100

			By Deficit- Excess of Expenditure over Income			6,100

		54,600				54,600

Working Notes:

1)

Postage Consumed	=	Opening Stock + Purchases – Closing Stock - Sales
	=	₹ (300 + 1,000 – 200) = ₹ 1,100

2)

Depreciation on Furniture	=	Opening Value + Purchases – Closing Value
	=	₹ (15,000 + 10,000 – 22,500) = ₹ 2,500

3)

Balance Sheet of Shankar Sports Club
as at 1^st April, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Loan @ 10% p.a.	20,000	Furniture	15,000
Outstanding Rent	1,500	Postage	300
		Subscriptions Outstanding	1,200
		Cash in Hand	2,600
		Capital Fund Deficit (Balancing Figure)	2,400

	21,500		21,500

Balance Sheet of Shankar Sports Club
as at 31^st March, 2019
Liabilities	Amount (₹)	Assets		Amount (₹)
Loan @10% p.a.	20,000	Capital Fund Deficit	2,400
Donation for Building	23,000	Add: Deficit	6,100	8,500
Outstanding Rent	1,500	Furniture		22,500
Life Membership Fees	7,000	Billiard Table		14,000
		Postage		200
		Subscriptions Outstanding		2,300
		Cash in Hand		4,000
		Furniture		22,500

	51,500			51,500

Question 53:

From the following particulars relating to the Ramakrishna Mission Charitable Hospital, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date.

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Cash in Hand on 1st April, 2018	71,300	By Medicines	3,05,900
To Subscriptions	4,79,960	By Doctor's Honorarium	90,000
To Donations	1,45,000	By Salaries	2,75,000
To Interest on Investment @ @ 7% for full year	70,000	By Petty Expenses	4,610
To Proceeds from Charity Show	1,04,500	By Equipments	1,50,000
		By Expenses on Charity Show	7,500
		By Cash in Hand on 31st March, 2018	37,750

	8,70,760		8,70,760

Additional Information:	As at 1st April, 2018 (₹)	As at 31st March, 2019 (₹)
Subscriptions Due	2,400	2,800
Subscriptions Received in Advance	640	1,000
Stock of Medicines	88,100	97,400
Estimated value of Equipments	2,12,000	3,16,000
Building (cost less depreciation)	4,00,000	3,80,000

Answer:

Books of Rama Krishna Mission Charitable Hospital Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Medicine	30,590		Subscription	47,996
Add: Opening Stock	8,810		Add: Due for 2018-19	280
Less: Closing Stock	(9,740)	29,660	Less: Due for 2017-18	(240)
Doctor’s Honorarium		9,000	Less: Advance for 2019-20	(100)
Salaries		27,500	Add: Advance for 2018-19	64	48,000
Petty Expenses		461	Donations		14,500
Expenses on Charity Show		750	Interest on Investments		7,000
Depreciation on Equipments		4,600	Proceeds from Charity Show		10,450
Depreciation on Building		2,000
Surplus (Balancing Figure)		5,979
		79,950			79,950

Balance Sheet as on April 01, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Advance Subscription	64	Subscription Due	240
Capital Fund (Balancing Figure)	1,77,316	Stock of Medicines	8,810
		Equipments	21,200
		Building	40,000
		Cash in Hand	7,130
		Investments	1,00,000
	1,77,380		1,77,380

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Advance Subscription		100	Subscription Due		280
Capital Fund	1,77,316		Stock of Medicines		9,740
Add: Surplus	5,979	1,83,295	Equipments	21,200
			Add: Purchases	15,000
				36,200
			Less: Depreciation	(4,600)	31,600
			Building	40,000
			Less: Depreciation	(2,000)	38,000
			Cash in Hand		3,775
			7% Investments		1,00,000
		1,83,395			1,83,395

Working Note:

Calculation of Value of Investments

Question 54:

Following is the Receipt and Payment Account of Women's Welfare Club for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Cash in Hand	22,500	Salary	1,25,000
To Cash at Bank	50,000	By Stationery	17,000
To Subscriptions	8,17,500	By Electric Charges	95,500
To Donations	30,000	By Insurance	75,000
To Government Grant	1,50,000	By Equipments	3,00,000
To Sale of Newspapers	3,000	By Petty Expenses	5,000
To Proceeds of Charity Show	1,65,000	By Expenses on Charity Show	1,29,000
To Interest on Investments @ 10% for full year	70,000	By Newspapers	10,000
To Sundries Income	4,000	By Lectures Fee	1,65,000
		By Honorarium to secretary	1,20,000
		By Cash in Hand	20,500
		By Cash at Bank	2,50,000

	13,12,000		13,12,000

Additional Information:

Particulars	1st April, 2018 (₹)	31st March, 2019 (₹)

Outstanding Salaries	12,000	18,000
Insurance Prepaid	7,000	3,000
Subscription Outstanding	37,500	25,000
Subscription received in advance	17,500	10,000
Electricity Charges outstanding	...	12,500
Stock of Stationery	22,500	7,000
Equipments	2,56,000	5,02,000
Building	12,00,000	11,40,000

Prepare Income and Expenditure Account for the year ended 31st March, 2019,and Balance Sheet as on that date.

Answer:

Income and Expenditure Account for the year ending March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Stationery		32,500	Donation		30,000
Electricity Charges	95,500		Government Grant		1,50,000
Add: Outstanding	12,500	1,08,000	Sale of Old Newspapers		3,000
Salary	1,25,000		Proceeds of Charity Show (Net)		36,000
Add: Current O/s	18,000		Interest on Investments		70,000
Less: Previous O/s	12,000	1,31,000	Sundries Income		4,000
Insurance	75,000		Subscription	8,17,500
Add: Previous	7,000		Add: Current O/s	25,000
Less: Current	3,000	79,000	Add: Previous Adv.	17,500
Petty Expenses		5,000	Less: Previous O/s	37,500
Newspaper		10,000	Less: Current Adv.	10,000	8,12,500
Lectures Fees		1,65,000
Honorarium to Secretary		1,20,000
Depreciation on Equipment		54,000
Depreciation on Building		60,000
Surplus		3,41,000
		11,05,500			11,05,500

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital Fund			Prepaid Insurance		3,000
Opening Balance	22,66,000		Subscription Outstanding		25,000
Add: Surplus	3,41,000	26,07,000	Investments		7,00,000
Outstanding Salary		18,000	Equipment	2,56,000
Subscription Received in Advance		10,000	Add: Purchases	3,00,000
Electricity Charges Outstanding		12,500	Less: Depreciation	54,000	5,02,000
			Cash		20,500
			Bank		2,50,000
			Building	12,00,000
			Less: Depreciation	60,000	11,40,000
			Stock of Stationery		7,000
		26,47,500			26,47,500

Working Notes

WN1: Ascertainment of Capital Fund

Balance Sheet as on March 31, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Outstanding Salary	12,000	Prepaid Insurance	7,000
Subscription Received in Advance	17,500	Subscription Outstanding	37,500
Capital Fund	22,66,000	Stock of Stationery	22,500
		Equipment	2,56,000
		Building	12,00,000
		Cash	22,500
		Bank	50,000
		Investments	7,00,000
	22,95,500		22,95,500

Double Entry Book Keeping Ts Grewal Vol. I 2019 for Class 12 Commerce Accountancy Chapter 1 - Financial Statements Of Not For Profit Organisations

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