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Page No 21.50:

Answer:

 

Books of Evergreen Club

Receipts and Payments Account

for the year ended March 31, 2016

Dr.

 

Cr.

Receipts

Amount

(Rs)

Payments 

Amount

(Rs)

Balance b/d

 

Investments Purchased

5,000

Cash in Hand

500

 

Rent Paid

500

Cash at Bank

3,400

3,900

General Expenses

2,300

Subscription Received

15,700

Postage and Stationery

250

Donation Received

2,800

Newspapers and Magazines

870

Sale of Old Newspapers

120

Books Purchased

3,400

Interest on Investments Received

500

Sports Material Purchased

4,700

 

 

Honorarium to Coacher

1,500

 

 

Balance c/d

 

 

 

Cash in Hand

300

 

 

 

Cash at Bank (Balancing Figure)

4,200

4,500

 

23,020

 

23,020

 

 

 

 

 

Page No 21.50:

Question 2:

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

 

 

 

 

 

 

 

Page No 21.50:

Answer:

Case 1

Balance Sheet

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Prize Fund

5,000

 

 

 

Less: Prize Paid

(1,200)

3,800

 

 

 

 

 

 

Note: Match Expenses of Rs 1,500 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 1,500) 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

10,000

 

Match Fund Investments

6,000

Less: Match Expenses

(3,500)

 

 

 

Add: Interest on Match Fund Investments

 

300

 

6,800

 

 

 

 

 

 

Note: Prizes paid worth Rs 1,900 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 1,900) 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.



Page No 21.51:

Question 4:

How are the following dealt with while preparing the final accounts of a club?
            
                                     TRIAL BALANCE as at 31st March,2018

Particulars
Dr. (₹)
    Cr. (₹)
Match Fund
Match Fund Investments
Match Fund Bank Balance
Interest on Match Fund Investments
Match Expenses
 
        ......
       72,000
       3,500
       .....
​      5,500
 
       80,000
  ......
  ......
 2,880
......
     
 
 
 
 

 




 
 
 
 
 

Answer:

Balance Sheet

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

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

 

 

 

 

 

 

 

Page No 21.51:

Question 5:

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, 2018:

 

Details
Match expenses paid during the year ended 31st March, 2018 
Match Fund as on 31st March, 2017
Donation for Match Fund (Received during the year ended 31st March, 2018)
proceeds from the sale of match tickets (Received during the year ended 31st March, 2018)
 
 1,02,000
    24,000
   40,000 
   15,000
   
 
 
 

 

Answer:

Balance Sheet

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

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.

 

Cr.

Expenditure 

Amount

(Rs)

Income

Amount

(Rs)

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.

Page No 21.51:

Question 6:

Show how are the following items dealt with while preparing the final accounts for the year ended 31st March , 2018 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 , 2017 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, 2017 is  ₹ 10,00,000, and Capital Fund as at 31st March , 2017 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, 2017 is  ₹ 10,00,000, and Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .Donation Received for                     Pavilion on 1st January,2018 is ₹ 5,00,000

 

Answer:

Case 1

Balance Sheet

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital Fund

20,00,000

Pavilion Work-in-Progress

6,00,000

 

 

 

 

 

Case 2

Balance Sheet

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

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, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

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

 

 

 

 

 

 

 



Page No 21.52:

Answer:

       Case 1 

       In case Entrance Fees is treated as Revenue Receipt

Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income

Amount

(Rs)

 

 

Entrance Fees

1,00,000

 

 

 

 

           

       In case Entrance Fees is treated as Capital Receipt

Balance Sheet

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital Fund

 

 

 

Add: Entrance Fees

1,00,000

1,00,000

 

 

 

 

 

 

         

 

        Case 2

Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income

Amount

(Rs)

 

 

Entrance Fees

75,000

 

 

(1,00,000 – 25,000)

 

           

 

 

 

 

Page No 21.52:

Answer:

Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

 

 

Subscription

42,000

 

 

 

Less: Outstanding for 2014-15

(1,400)

 

 

 

Add: Outstanding for 2015-16

1,000

41,600

 

 

 

 

 

Page No 21.52:

Answer:

Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

 

 

Subscription

 

 

 

(450 Members × Rs 20 each)

9,000

 

 

 

 

 

Page No 21.52:

Answer:

Statement of Subscription

for the year ended March 31, 2016

Particulars 

Amount

(Rs)

Subscription received during the year 2015-16

40,900

Add: Outstanding for 2015-16 (Current year)

1,500

Less: Received for 2014-15 (Previous year)

(500)

Add: Advance received in 2014-15 (Previous year)

1,800

Less: Advance received for 2016-17 (Next year)

(1,000)

Subscription to be credited to Income and Expenditure Account

42,700

 

 

 

Page No 21.52:

Answer:

Statement of Subscription

for the year ended March 31, 2016

Particulars

Amount

(Rs)

Subscription received during the year 2015-16

30,000

Less: Subscription-in-Arrears for 2014-15

(5,000) 

Add: Subscription-in-Arrears for 2015-16

2,500

Add: Subscription-in Advance for 2015-16

3,000

Less: Subscription-in Advance for 2016-17

(7,000)

Subscription to be Credited to Income and Expenditure Account

23,500

 

 

 

Page No 21.52:

Question 12:

Calculate amount of subscriptions which will be treated as income for the year ended 31st March, 2018 for each of the following cases:

   Particulars    ₹ 
  Case I.
 (i)   Subscriptions collected during the year ended 31st March, 2018
 (ii)  Subscriptions in arrears for the year ended 31st March, 2018
 (iii) Subscriptions received in advance for the year ended 31st March, 2019 
 2,50,000
      6,000
      5,000
  Case II.  (i)   Subscriptions collected during the year ended 31st March, 2018
 (ii) Subscriptions for the year ended 31st March, 2018 collected in the year ended 31st March, 2017
(iii) Subscriptions unpaid for the year ended 31st March, 2018
49,000
  3,000
  2,000
 Case III.  (i)   Subscriptions received during the year ended 31st March, 2018
 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2018
(iii) Subscriptions not yet collected for the year ended 31st March, 2018
25,000
  3,000
  5,000
  Case IV.  (i)   Subscriptions received during the year ended 31st March, 2018
 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2018
(iii) Subscriptions not yet collected for the year ended 31st March, 2018
(iv) Subscriptions for the year ended 31st March, 2019 received in advance 
80,000
  5,000
  8,000
  2,000
  Case V.   (i)   Subscriptions received during the year ended 31st March, 2018
 (ii) Subscriptions outstanding at the end of the year ended 31st March, 2017
 (iii) Subscriptions  received in advance on 31st March, 2017
 (iv)Subscriptions  received in advance on 31st March, 2018
 (v)  Subscriptions not yet collected for the year ended 31st March, 2018
90,000
  5,000
  3,000
  4,000
  6,000
 

Answer:

Case 1

Statement of Subscription

for the year ended March 31, 2016

Particulars 

Amount

(Rs)

Subscriptions collected during the year 2015-16

2,50,000

Add: Subscriptions-in-arrears for the year 2015-16

6,000

Less: Subscriptions received in advance for the year 2016-17

(5,000)

Subscriptions Income for the year 2015-16

2,51,000

 

 

 

Case 2

Statement of Subscription

for the year ended March 31, 2016

Particulars 

Amount

(Rs)

Subscriptions collected during the year 2015-16

49,000

Add: Subscriptions collected for 2015-16 in 2014-15

3,000

Add: Subscriptions unpaid for the year 2015-16

2,000

Subscriptions Income for the year 2015-16

54,000

 

 

 

Case 3

Statement of Subscription

for the year ended March 31, 2016

Particulars 

Amount

(Rs)

Subscriptions received during the year 2015-16

25,000

Less: Subscriptions outstanding in the beginning of 2015-16

(3,000)

Add: Subscriptions yet not collected for 2015-16

5,000

Subscriptions Income for the year 2015-16

27,000

 

 

 

Case 4

Statement of Subscription

for the year ended March 31, 2016

Particulars 

Amount

(Rs)

Subscriptions received during the year 2015-16

80,000

Less: Subscriptions outstanding in the beginning of 2015-16

(5,000)

Add: Subscriptions yet not collected for 2015-16

8,000

Less: Subscriptions for 2016-17 received in advance

(2,000)

Subscriptions Income for the year 2015-16

81,000

 

 

 

Case 5

Statement of Subscription

for the year ended March 31, 2016

Particulars 

Amount

(Rs)

Subscriptions received during the year 2015-16

90,000

Less: Subscriptions outstanding at the end of 2014-15

(5,000)

Add: Subscriptions received in advance on Mar. 31, 2015

3,000

Less: Subscriptions received in advance on Mar. 31, 2016

(4,000)

Add: Subscriptions not yet collected for 2015-16

6,000

Subscriptions Income for the year 2015-16

90,000

 

 

 



Page No 21.53:

Answer:

Subscriptions Account

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

       

Subscriptions Outstanding

(as on Dec. 31, 2012)

500

Bank (Subscription received)

22,300

Advance Subscriptions (for 2014)

750

Subscriptions Outstanding (as on Dec. 31, 2013) (Bal. Fig.)

1,450

Income and Expenditure (450 Member × Rs 50)

22,500

 

 

 

23,750

 

23,750

 

 

 

 

         

 

Subscriptions-in-arrears in 2013

1,450

Less: Subscriptions still-in-arrears for 2012

(50)

Subscriptions-in-arrears for 2013

1,400

 

Page No 21.53:

Question 14:

From the following particulars , calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2018:
                                                                                                                                                                                          ₹ 
(a) Subscriptions in arrears on 31st March ,2017                                                                                                        500
(b) Subscriptions received in advance on 31st March, 2017 for the year ended on 31st March, 2018                     1,100
(c) Total Subscriptions received during the year ended 31st March , 2018                                                            35,400
(including ₹ 400 for the year  ended 31st March , 2017, ₹ 1,200 for the year ended
31st March, 2019 and ₹ 300 for the year ended 31st March, 2020)
(d) Subscriptions outstanding for year ended 31st March , 2018                                                                                  400

Answer:

Statement of Subscriptions

for the year ended March 31, 2016

Particulars 

Amount

(Rs)

Subscriptions received during 2015-16

35,400

Less: Subscriptions-in-arrears received for 2014-15

(400)

Less: Subscriptions received-in-advance for 2016-17

(1,200)

Less: Subscriptions received-in-advance for 2017-18

(300)

Add: Subscriptions Outstanding for 2015-16

400

Add: Subscriptions received in 2014-15 for 2015-16

1,100

Subscriptions to be credited to Income and Expenditure Account

35,000

 

 

Page No 21.53:

Answer:

Income and Expenditure Account

for the year ended March 31, 2015

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

 

 

Subscriptions

35,850

 

 

 

Add: Outstanding at the end

3,750

 

 

 

Add: Advance in the beginning

2,250

 

 

 

Less: Outstanding in the beginning

(3,000)

 

 

 

Less: Advance at the end

(1,350)

37,500

 

 

 

 

             

 

Balance Sheet

as on March 31, 2014

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Subscription received in Advance

2,250

Subscriptions Outstanding

3,000

 

 

 

 

 

Balance Sheet

as on March 31, 2015

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Subscription received in Advance

1,350

Subscriptions Outstanding

3,750

 

 

 

 

 



Page No 21.54:

Question 16:

From the following information , calculate amount of subscriptions outstanding for the year ended 31st March, 2018:
A club has 200 embers 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, 2017                                 30,000
Subscriptions Received in Advance on 31st March, 2018                   40,000
Subscriptions Received in Advance on 31st March, 2017                  14,000

 

Answer:

Subscriptions Account

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

       

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

 

 

 

 

 

Page No 21.54:

Question 17:

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, 2018:

 

Particulars
1 st April, 2017 
(₹)
    31 st March, 2018
      (₹)

Stock of Medicines
Creditors for Medicines
 
         1,75,750
        15,06,900

        1,44,650
       18,20,700
 
 
 
 

Medicines purchased during the year ended 31st March, 2018 were ​​₹ 60,80,700   .

 




 
 
 
 
 

Answer:

Statement of Medicine Consumed

during the year 2015-16

Particulars 

Amount

(Rs)

Medicine Purchased during the year 2015-16

60,80,700

Add: Stock in the beginning (as on April 01, 2015)

1,75,750

Less: Stock at the end (as on March 31, 2016)

(1,44,650)

Medicine to be debited to Income and Expenditure Account 

61,11,800

 

 

 

Page No 21.54:

Answer:

Statement of Medicines Consumed

for the year ending March 31, 2013

Particulars 

Amount

Rs

Cash Purchases of medicines during the year

30,000

Add: Opening Stock of Medicines

10,000

Less: Closing Stock of Medicines

(15,000)

Add: Closing Creditors of Medicines

13,000

Less: Opening Creditors of Medicines

(9,000)

Amount of Medicines Consumed during the year 2012-13

29,000

 

 

 

Page No 21.54:

Answer:

(a)

Statement of Stationery Consumed

at the end of March 31, 2017

Particulars 

Amount

(Rs)

Amount paid for Stationery during the year ended 31st March, 2017

540

Less: Closing Stock (as on March 31, 2017)

(25)

Amount of Stationery to be posted to Income and Expenditure Account 

515

 

 

 

(b)

Statement of Stationery Consumed

at the end of March 31, 2017

Particulars 

Amount

(Rs)

Payment made for Stationery during the year ended 31st March, 2017

540

Add: Opening Stock (as on April 01, 2016)

150

Less: Closing stock (as on March 31, 2017)

(25)

Amount of Stationery to be posted to Income and Expenditure Account 

665

 

 

 

(c)

Statement of Stationery Consumed

at the end of March 31, 2017

Particulars 

Amount

(Rs)

Amount paid for Stationery during the year ended 31st March, 2017

540

Add: Opening Stock (as on April 01, 2016)

150

Less: Closing stock (as on March 31, 2017)

(25)

Less: Creditors for Stationery in the beginning (April 01, 2016)

(100)

Amount of Stationery to be posted to Income and Expenditure Account 

565

 

 

 

Page No 21.54:

Question 20:

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 , 2018:

      ₹
Stock of Stationery as at 1st April, 2017     12,000
Creditors for Stationery as at 1st April, 2017     25,600
Amount paid for Stationery during the year ended 31st March,2018  1,40,000
Stock of Stationery as at 31st March,2018     23,200
Creditors for Stationery as at 31st March,2018     24,000

Answer:

Statement of Stationery Consumed

for the year ended March 31, 2017

Particulars 

Amount

(Rs)

Amount paid for Stationery during the year 2016-17

1,40,000

Add: Opening Stock (as on April 01, 2016)

12,000

Less: Closing Stock (as on March 31, 2017)

(23,200)

Add: Creditors at the end (as on March 31, 2017)

24,000

Less: Creditors in the beginning (as on April 01, 2016)

(25,600)

Amount of Stationery be shown in Income and Expenditure Account 

1,27,200

 

 

 



Page No 21.55:

Answer:

Statement of Stationery

for the year ended March 31, 2016

Particulars

Amount

(Rs)

Amount paid for Stationery during 2015-16

2,160

Add: Opening Stock (as on April 01, 2015)

600

Less: Closing stock (as on March 31, 2016)

(100)

Less: Creditors in the beginning (April 01, 2015)

(400)

Add: Creditors at the end (March 31, 2016)

260

Add: Advance in the beginning (April 01, 2015)

40

Less: Advance at the end (March 31, 2016)

(60)

Amount to be posted to Income and Expenditure Account 

2,500

 

 

 

Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Stationery Consumed

2,500

 

 

 

 

 

 

           

 

Balance Sheet

as on April 01, 2015

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Creditors for Stationery

400

Stock of Stationery

600

 

 

Advance paid for Stationery

40

 

 

 

 

 

Balance Sheet 

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Creditors for Stationery

260

Stock of Stationery

100

 

 

Advance paid for Stationery

60

 

 

 

 

 

Page No 21.55:

Answer:

Statement of Stationery

for the year ended Mar. 31, 2016

Particulars 

Amount

(Rs)

Amount paid for Stationery during the year 2015-16

10,800

Add: Opening Stock (as on Apr. 01, 2015)

3,000

Less: Closing stock (as on Mar. 31, 2016)

(500)

Less: Creditors in the beginning (as on Apr. 01, 2015)

(2,000)

Add: Creditors at the end (as on Mar. 31, 2016)

1,300

Add: Advance in the beginning (as on Apr. 01, 2015)

200

Less: Advance at the end (as on Mar. 31, 2016)

(300)

Amount to be posted to Income and Expenditure Account 

12,500

 

 

 

Page No 21.55:

Question 23:

​How are the following dealt with while preparing the final accounts for the year ended 31st March , 2018?
 

RECEIPTS AND PAYMENTS ACCOUNT ( AN EXTRACT ) for the year ended 31ST March, 2018

 

Dr.

 

             Cr.
Receipts

 

Payments 

 

  ​By Payments for Sports Material 1,40,000
       

 

     

 

 

 

 

BALANCE SHEET (AN EXTRACT) as at 1st April, 2017

 

 

 

 
Liabilities

 

 

Assets

 

   
Creditors foe Sports Materials 6,000 Sports Materials 8,000
       

 

 

 

 

 

 

 

 

 

 

 

 

Additional information :
(i) Sports Materials in Hand on 31st March, 2018₹ 22,000
 

Answer:

Income and Expenditure Account

for the year ended March 31, 2015

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income

Amount

(Rs)

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, 2015

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

(Rs)

Income

Amount

(Rs)

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

Page No 21.55:

Question 24:

​How are the following dealt with while preparing the final accounts for the year ended 31st March , 2018?

 

                 RECEIPTS AND PAYMENTS ACCOUNT ( AN                                    EXTRACT ) for the year ended 31ST March, 2018

 

Dr.

 

             Cr.
Receipts

 

Payments 

 

  ​By Payments for Medicines 1,50,000
       

 

     

 

 

 

 
 

 

 

Additional information :
   As at 1st April, 2017 (₹)  As at 31st March, 2018 (₹)
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, 2017

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income

Amount

(Rs)

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, 2016

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Creditors for Medicines

40,000

Stock of Medicines

50,000

 

 

 

 

 

 

Balance Sheet

as on March 31, 2017

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Creditors for Medicines

60,000

Stock of Medicines

75,000

 

 

 

 

 



Page No 21.56:

Question 25:

​How are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March , 2018?

 

                 RECEIPTS AND PAYMENTS ACCOUNT ( AN                                    EXTRACT ) for the year ended 31ST March, 2018

 

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 1st April, 2017 (₹)  As at 31st March, 2018 (₹)
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, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income

Amount

(Rs)

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, 2015

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Creditors for Sport Materials

7,000

Stock of Sport Materials

20,000

 

 

 

 

 

 

Balance Sheet

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Creditors for Sport Materials

15,000

Stock of Sport Materials

25,000

 

 

 

 

 

Page No 21.56:

Question 26:

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, 2018 and Balance Sheets as at 31st March , 2018:
 

 

 

 

Particulars

31st March, 2017

31st March, 2018

Stocks of Sports Materials
Creditors for Sports Materials
Advance to Suppliers for Sports Materials

6,200
9,800
11,000

4,800
7,200
19,000

     

 

 

 

       

 

Answer:

Extract of Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income

Amount

(Rs)

Sports Material Consumed

92,800

 

 

 

 

 

 

           

 

Balance Sheet

as on March 2015

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Creditors for Sports Materials

9,800

Stock of Sports Materials

6,200

 

 

Advance paid for Sports Materials

11,000

 

 

 

 

 

Balance Sheet

as on March 2016

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

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

(Rs)

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

(Rs)

Income

Amount

(Rs)

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

Page No 21.56:

Answer:

Furniture Account

Dr.

 

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

           

2015

 

 

2015

 

 

April 01

Balance b/d

 

Sept.30

Depreciation (i) (for 6 Months)

150

 

(i) 3,000

 

Sept.30

Bank (Sale) (i)

2,000

 

(ii) 3,000

6,000

Sept.30

Income and Expenditure (Loss on Sale)

850

      2016    

 

 

 

March 31

Depreciation (ii) (for whole year)

300

 

 

 

 

Balance c/d (ii) (3,000 – 300)

2,700

 

 

6,000

 

 

6,000

 

 

 

 

 

 

               

 

Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Depreciation on Furniture

 

 

 

(150 + 300)

450

 

 

Loss on Sale of Furniture

850

 

 

 

 

 

 

           

 

Working Note:

Calculation of Profit or Loss on Sale of Furniture

Particulars

Amount

(Rs)

Book Value of Furniture Sold as on April 01, 2015

3,000

Less: Depreciation (for 6 Months) (3,000 × 10% × 6/12)

(150)

Book Value of Furniture as on Sept. 30, 2015

2,850

Less: Sale Value

(2,000)

Loss on Sale of Furniture

850

 



Page No 21.57:

Question 28:

Delhi Youth Club has furniture at a value of ₹ 2,20,000 in its book on 31st March, 2017. It sold old furniture , having book value of ₹ 20,000 as at 1st April , 2017 at a loss of 20% on 31st December, 2017 . Furniture is to be depreciated @ 10% p.a. Furniture costing ₹ 1,50,000 was also purchased on 1st October, 2017.
Prepare Furniture Account for the year ended 31st March, 2018.

Answer:

Furniture Account

Dr.

 

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

           

2015

 

 

2015

 

 

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

2016

 

 

 

 

 

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

(Rs)

Book Value of Furniture (i) as on April 01, 2015

20,000

Less: Depreciation (for 9 Months) [20,000 × 10% × 9/12]

(1,500)

Book Value on December 31, 2015

18,500

Less: Loss on Sale of Furniture (18,500 × 20%)

(3,700)

Sale Value of Furniture

14,800

 

Page No 21.57:

Question 29:

In the year ended 31st March, 2018, salaries paid amounted to ₹ 2,04,000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March ,2018 from the following additional information:

       ₹
Prepaid Salaries on 31st March, 2017  24,000
Prepaid Salaries on 31st March, 2018  12,000
Outstanding Salaries on 31st March, 2017  18,000
Outstanding Salaries on 31st March, 2018  15,000

Answer:

Statement of Salaries

for the year ended March 31, 2016

Particulars 

Amount

(Rs)

Amount paid for Salaries

20,400

Add: Prepaid Salaries as on March 31, 2015

2,400

Less: Prepaid Salaries as on March 31, 2016

(1,200)

Less: Outstanding Salaries as on March 31, 2015

(1,800)

Add: Outstanding Salaries as on March 31, 2016

1,500

Salaries chargeable to Income and Expenditure Account

21,300

 

 

 

Page No 21.57:

Answer:

Statement of Miscellaneous Expenses

for the year ended March 31, 2016

Particulars 

Amount

(Rs)

Amount Paid for Miscellaneous Expenses during the year 2015-16

6,500

Add: Prepaid Expenses as on March 31, 2015

600

Less: Prepaid Expenses as on March 31, 2016

(800)

Add: Outstanding Expenses as on March 31, 2015

(1,000)

Less: Outstanding Expenses as on March 31, 2016

1,200

Miscellaneous Expenses chargeable to Income and Expenditure Account

6,500

 

 

 

Page No 21.57:

Answer:

Income and Expenditure Account 

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

 

 

Locker Rent Received

5,200

 

 

 

Add: Outstanding at the end

630

 

 

 

Add: Advance in the beginning

300

 

 

 

Less: Outstanding in the beginning

(460)

 

 

 

Less: Advance at the end

(400)

5,270

 

 

 

 

 

Page No 21.57:

Answer:

Income and Expenditure Account 

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Salaries

4,800

Subscriptions

9,000

Rent

500

Donation

100

Stationery

200

 

 

Loss on Sale of Old Furniture

100

 

 

Surplus (Balancing Figure)

3,500

 

 

 

9,100

 

9,100

 

 

 

 

 



Page No 21.58:

Answer:

Income and Expenditure Account 

for the year ended December 31, 2013

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Salaries

3,500

Subscriptions

3,900

 

Rent

1,200

Less: Outstanding in 2012

(200)

 

Printing and Stationery

190

Less: Advance for 2014

(150)

3,550

Postage

130

Sale of Old Newspapers

40

 

 

Entrance Fees

100

 

 

Deficit (Balancing Figure)

1,330

 

5,020

 

5,020

 

 

 

 

 

Page No 21.58:

Answer:

Book of Delhi Nursing Society

Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Salaries of Nurses

6,560

Subscriptions

11,150

 

Board, Laundry and Domestic Help

3,800

Less: Donation for Building

(1000)

10,150

Rent Rates and Taxes

2,000

Fees from Non-members

2,700

Expenses of Car

8,400

Municipal Grant

10,000

Drugs and Incidental Expenses

6,700

 

Interest

380

Add: Outstanding Expenses

1,280

7,980

Deficit (Balancing Figure)

5,510

 

28,740

 

28,740

 

 

 

 

 

Page No 21.58:

Answer:

Books of You Bee Forty Club 

Income and Expenditure Account

for the year ended March 31, 2015

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Salaries and Wages

16,000

 

Subscriptions

35,000

 

Add: Outstanding

4,000

20,000

Add: Outstanding for 2014-15

5,500

40,500

Office Expenses

3,500

Donations

5,000

Telephone Charges

2,400

Entrance Fees

8,000

Electricity Charges

3,200

 

 

Travelling Expenses

6,500

 

 

Depreciation on Sports Equipments (34,000 × 25%)

8,500

 

 

Surplus (Balancing Figure)

9,400

 

 

 

53,500

 

53,500

 

 

 

 

 



Page No 21.59:

Answer:

Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Rent

6,000

 

Entrance Fees (2015-16)

5,000

Less: For 2014-15

(1,500)

4,500

Subscription 2015-16

9,000

 

 

 

Add: Outstanding for 2015-16 (9,000 × 10/9 )

1,000

10,000

Insurance Premium

6,000

 

Donations 

12,000

Less: For 2016-17

(1,500)

4,500

Interest on Fixed Deposits

240

 

Printing and Stationery

2,000

Add: Accrued Interest

240

480

Loss on Sale of Sports Material (120 -50)

70

Sale of Old Sports Materials

30

Surplus (Balancing Figure) 17,060

Locker Rent

680

 

 

 

Less: For 2014-15

(60)

620

 

28,130

 

28,130

 

 

 

 

               

 

Working Notes:

Calculation of Interest Accrued on investment 

Interest on Investment for 6 Months (12,000 × 8% × 6/12)

480

Less: Interest Received

(240)

Accrued Interest on Investment

240

 

 

Page No 21.59:

Answer:

Books of Delhi Football Club 

Income and Expenditure Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

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

General Donation (5,00,000 × 10%)

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

 



Page No 21.60:

Answer:

Books of Royal Club 

Income and Expenditure Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Rent and Rates

1,680

 

Entrance Fees

2,550

Less: Outstanding Rent in the beginning 

(600)

 

Subscriptions

16,000

 

Add: Outstanding Rent at the end  

600

1,680

Less: Outstanding in the beginning

(350)

 

Wages

2,450

Add: Outstanding at the end

450

16,100

Lighting Charge

720

Donations

1,650

Lecturer’s Fee

4,350

Profit on Entertainment

560

Office Expenses

4,500

Interest Accrued on Fixed Deposits

120

Depreciation on:

 

(8,000 × 3% × 6/12)

 

Books

1,130

 

 

 

Furniture

500

1,630

 

 

Surplus (Balancing Figure)

5,650

 

 

 

20,980

 

20,980

 

 

 

 

               

 

Balance Sheet

as on April 01, 2015

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Outstanding Rent

600

Books

20,000

Capital Fund (Balancing Figure)

31,440

Furniture

8,500

 

 

Subscriptions Outstanding

350

 

 

Cash and Bank

3,190

 

32,040

 

32,040

 

 

 

 

 

Balance Sheet

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Rent Outstanding 

600

Subscriptions Outstanding

450

Capital Fund

31,440

 

Books

20,000

 

Add: Life Membership Fees

2,500

 

Add: Purchases

2,130

 

Add: Surplus

5,650

3,959

Less: Deprecation

(1,130)

21,000

 

 

Furniture

8,500

 

 

 

Less: Depreciation

(500)

8,000

 

 

Fixed Deposits

8,000

 

 

 

Add: Accrued interest 

120

8,120

 

 

Cash at Bank

2,420

 

 

Cash in Hand

200

 

40,190

 

40,190

 

 

 

 

 

Page No 21.60:

Answer:

In the books of New City Club

Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure

Amount

(Rs)

Income

Amount

(Rs)

Salaries

2,800

 

Subscription (50 members × Rs 50 each)

2,500

Add: Outstanding for 2016

200

 

Rent Received from the use of hall 

1,400

Less: Outstanding for 2015

(600)

2,400

Profit from Entertainment

800

General Expenses

600

Sale of Old Newspapers

200

Electricity Charges

400

 

 

Newspapers

800

 

 

Depreciation on Furniture (2,000 × 10%)

20