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Page No 7.51:

Question 1:

From the following particulars of Evergreen club, prepare Receipts and payments Account for the year ended 31st March,2018:

 

 

 

 

 

 

 

Cash in Hand on 1st April,2017
Cash at Bank on 1st April,2017
Subscriptions Received
Donations Received
Investments purchased 
Rent paid
General Expenses
Postage and stationery
 

  50,000
3,40,000
15,70,000
2,80,000
5,00,000
50,000
2,30,000
25,000 
Newspaper and Magazines
Sale of Old Newspaper
Books purchased
Sports Materials Purchased
Interest on Investments Received
Honorarium to coaches 
Cash in Hand on 31st March,2018
Cash at Bank on 31 st March ,2018
87,000
12,000
3,40,000
4,70,000
50,000
1,50,000
30,000
​?

 

 

 

 

 

 

Answer:

 

Books of Evergreen Club

Receipts and Payments Account

for the year ended March 31, 2018

Dr.

 

Cr.

Receipts

Amount

(Rs)

Payments 

Amount

(Rs)

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

 

 

 

 

 

Page No 7.51:

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 7.52:

Question 3:

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.

Page No 7.52:

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 7.52:

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 7.52:

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 7.53:

Question 7:

How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2018 in each of the following alternative cases?

Case I    During the year ended 31st March, 2018, Entrance Fees received was ₹ 1,00,000.

Case II    During the year ended 31st March, 2018, 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, 2018

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income

Amount

(Rs)

 

 

Entrance Fees

1,00,000

 

 

 

 

           

       I

        Case 2

Income and Expenditure Account

for the year ended March 31, 2018

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income

Amount

(Rs)

 

 

Entrance Fees

75,000

 

 

(1,00,000 – 25,000)

 

           

 

 

 

 

Page No 7.53:

Question 8:

In the year ended 31st March , 2018, the subscriptions  received by the jaipur Literary Society were ₹ 4,20,000. These subscriptions include ₹ 14,000 received for the year ended 31st March , 2017. On 31st March, 2018, subscriptions due but not received were ₹ 10,000.What amount should be credited to Income and Expenditure Account for the year ended 31st March, 2018 as subscription ?  

Answer:

Income and Expenditure Account

for the year ended March 31, 2018

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

 

 

Subscription

4,20,000

 

 

 

Less: Outstanding for 2014-15

14,000

 

 

 

Add: Outstanding for 2015-16

10,000

4,16,000

 

 

 

 

Page No 7.53:

Question 9:

Subscriptions received during the year ended 31st March , 2018 are:

                                                                          ₹                        ₹ 
For the year ended  31st March, 2017           1,600
For the year ended 31st March,2018            84,400
For the year ended  31st March,2019             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, 2017.
calculate amount of subscriptions to be credited to Income and Expenditure  Account for the year ended 31st March, 2018. 
                                                                       

Answer:

Income and Expenditure Account

for the year ended March 31, 2018

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

 

 

Subscription

 

 

 

(450 Members × Rs 200 each)

90,000

 

 

 

 

Page No 7.53:

Question 10:

In the year ended 31st March , 2018 , subscriptions received by Kings Club, Delhi were ₹ 4,09,000 including ₹ 5,000 for the year ended 31st March, 2017 and ₹ 10,000 for the year ended 31st March , 2019. At the end  ₹ 15,000. The subscriptions due but not received at the end of the previous year, i.e., 31st March, 2017 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, 2018.

Answer:

Statement of Subscription

for the year ended March 31, 2018

Particulars 

Amount

(Rs)

Subscription received during the year 2017-18

4,09,000

Add: Outstanding for 2017-18 (Current year)

15,000

Less: Received for 2016-17 (Previous year)

(5,000)

Add: Advance received in 2016-17 (Previous year)

18,000

Less: Advance received for 2018-19 (Next year)

10,000)

Subscription to be credited to Income and Expenditure Account

4,27,000

 

 

Page No 7.53:

Question 11:

From the following information, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2018:

                                                                                                      ₹ 
1st April, 2017             Subscriptions in Arrears                      50,000
                                     Subscriptions Received in Advance    30,000
31st March, 2018         Subscriptions in Arrears                      25,000
                                     Subscriptions Received in Advance    70,000

Subscriptions received during the year ended 31st March, 2018 -  ₹  3,00,000

Answer:

Statement of Subscription

for the year ended March 31, 2018

Particulars

Amount

(Rs)

Subscription received during the year 2017-18

3,00,000

Less: Subscription-in-Arrears for 2016-17

50,000 

Add: Subscription-in-Arrears for 2017-18

25,000

Add: Subscription-in Advance for 2017-18

30,000

Less: Subscription-in Advance for 2018-19

70,000

Subscription to be Credited to Income and Expenditure Account

2,35,000

 

 



Page No 7.54:

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 7.54:

Question 13:

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 7.54:

Question 14:

Receipts and Payments Account of Friends Club showed that ₹  6,85,000 were received by way of  subscriptions for the year ended on 31st March, 2018.
The additional  information was as under :
(a) Subscription outstanding as on 31st March, 2017 were ₹ 65,000 .
(b) Subscription received in advance as on 31st March , 2017 were ₹ 41,000.
(c) Subscription outstanding as on 31st March, 2018 were ₹ 54,000 .
(d) Subscription received in advance as on 31st March , 2018 were ₹ 25,000.
Show how the above information would appear in the final accounts for the year ended on 31st March, 2018 of Friends Club.

Answer:

Income and Expenditure Account 
for the year ending March 31, 2018
Dr.  
 
Cr.
Expenditure
 
Amount
(₹)
Income
Amount (₹)
   
 
Subscriptions
6,90,000
   
 
 
 
 
Balance Sheet
as on March 31, 2018
Liabilities
Amount
(₹)
Assets
Amount (₹)
Subscriptions Received in Advance
25,000
Subscriptions Outstanding
54,000
 
 
 
 
 
Balance Sheet
as on March 31, 2017
Liabilities
Amount
(₹)
Assets
Amount (₹)
Subscriptions Received in Advance
41,000
Subscriptions Outstanding
65,000

Working Notes:

WN1: Calculation of Subscription Income
 
Particulars
Amount
(₹)
Subscription received during 2017-18
6,85,000
Subscription outstanding in 2017-18
54,000
Subscription received in advance in 2016-17
41,000
Subscription outstanding in 2016-17
(65,000)
Subscription received in advance in 2017-18
(25,000)
Credited to Income and Expenditure Account 6,90,000



Page No 7.55:

Question 15:

How are the following items of subscriptions shown in the Income and Expenditure  Account for the year ended 31st March, 2018  and Balance Sheets as at 31st March, 2017 and 2018 ?
                                                                                                                                            ₹
Subscriptions received during the year ended 31st March, 2018                                 3,58,500
Subscriptions outstanding on 31st March ,2017                                                              30,000
Subscriptions received in Advance on 31st March,2017                                                 22,500
Subscriptions received in Advance on 31st March,2018                                                 13,500
Subscriptions outstanding on 31st March ,2018                                                               37,500
(including ​  ₹ 12,500 for the year ended 31st March, 2017)

Answer:

Income and Expenditure Account

for the year ended March 31, 2018

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, 2017

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Subscription received in Advance

2,250

Subscriptions Outstanding

3,000

 

 

 

 

 

Balance Sheet

as on March 31, 2018

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Subscription received in Advance

1,350

Subscriptions Outstanding

3,750

 

 

 

 

 

Page No 7.55:

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 7.55:

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 7.55:

Question 18:

Calculate amount of medicines consumed during the year ended 31st March, 2018:                                            
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, 2018

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 2017-18

2,90,000

 

 

Page No 7.55:

Question 19:

Calculate  amount to be posted to the Income and Expenditure Account for the year ended 31st March, 2018:
(i) Amount paid for stationery during the year ended 31st March , 2018 ₹5,400; Stock of Stationery in Hand on 31st March, 2018 ₹250.
(ii) Stock of Stationery in Hand on 1st April, 2017
 1,500; Payment made for Stationery during the year ended 31st March, 2018₹5,400; Stock of Stationery in Hand on 31st March, 2018₹250.
                                                                                                                   

(iii) Stock of Stationery on 1st April, 2017                                           1,500
       Creditors for Stationery on 1st April, 2017                                    1,000
       Amount paid for Stationery during the year                                   5,400
      Stock of Stationery on 31st March, 2018                                           250

Answer:

(a)

Statement of Stationery Consumed

at the end of March 31, 2018

Particulars 

Amount

(Rs)

Amount paid for Stationery during the year ended 31st March, 2018

5,400

Less: Closing Stock (as on March 31, 2018)

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, 2018

Particulars 

Amount

(Rs)

Payment made for Stationery during the year ended 31st March, 2018

5,400

Add: Opening Stock (as on April 01, 2017)

1,500

Less: Closing stock (as on March 31, 2018)

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, 2018

Particulars 

Amount

(Rs)

Amount paid for Stationery during the year ended 31st March, 2018

5,400

Add: Opening Stock (as on April 01, 2017)

1,500

Less: Closing stock (as on March 31, 2018)

250

Less: Creditors for Stationery in the beginning (April 01, 2017)

1,000

Amount of Stationery to be posted to Income and Expenditure Account 

5,650

 

 

 



Page No 7.56:

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 7.56:

Question 21:

Calculate the amount that will be posted to the income and Expenditure Account for the year ended 31st March, 2018:

      ₹
Stock of Stationery on 1st April, 2017     30,000
Creditors for Stationery on 1st April, 2017     20,000
Advances paid for Stationery carried forward from the year ended 31st March, 2017       2,000
Amount paid for Stationery during the year ended 31st March,2018  1,08,000
Stock of Stationery on 31st March,2018     13,000
Advance paid for Stationery  on 31st March,2018     3,000
 

Answer:

Statement of Stationery

for the year ended Mar. 31, 2018

Particulars 

Amount

(Rs)

Amount paid for Stationery during the year 2017-18

1,08,000

Add: Opening Stock (as on Apr. 01, 2017)

30,000

Less: Closing stock (as on Mar. 31, 2018)

5,000

Less: Creditors in the beginning (as on Apr. 01, 2017)

20,000

Add: Creditors at the end (as on Mar. 31, 2018)

13,000

Add: Advance in the beginning (as on Apr. 01, 2017)

2,000

Less: Advance at the end (as on Mar. 31, 2018)

3,000

Amount to be posted to Income and Expenditure Account 

1,25,000

 

 

Page No 7.56:

Question 22:

​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 7.56:

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 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 7.57:

Question 24:

​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 7.57:

Question 25:

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 7.57:

Question 26:

The book value of furniture on 1st April, 2017 is ₹ 60,000. Half of this furniture is sold for ₹ 20,000 on 30th September,2017. 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, 2018.

Answer:

Furniture Account

Dr.

 

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

           

2017

 

 

2017

 

 

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

      2018    

 

 

 

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, 2018

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

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

(Rs)

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, 2017

28,500

Less: Sale Value

20,000

Loss on Sale of Furniture

8,500



Page No 7.58:

Question 27:

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 7.58:

Question 28:

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 7.58:

Question 29:

How are the following items dealt with while preparing Income and Expenditure Account of a club for the year ended 31st March, 2018?

   1st April, 2017  31st March, 2018
Outstanding Locker Rent  ₹ 4,600    ₹ 6,300
Advance Locker Rent  ₹ 3,000    ₹ 4,000

Locker Rent received during the year ended 31st March, 2018 ₹ 52,000.
 

Answer:

Income and Expenditure Account 

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

 

 

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

 

 

 

 

Page No 7.58:

Question 30:

Prepare Income and Expenditure Account for the year ended 31st March, 2018 from the following:
 

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018

Dr.

 

Cr.

Receipts

 

Payments 

To Balance b/d (cash)
To Subscriptions
To Sale of Investments
To Sale of Old Furniture 
   (  Book Value 
₹ 40,000)
To Donations

 

1,80,000
9,00,000
2,00,000
30,000

10,000

By Salaries
By Rent
By Stationery
By Defence Bonds
By Furniture
By Bicycles
By Balance c/d (Cash)

4,80,000
50,000
20,000
3,00,000
2,00,000
30,000
2,40,000

       

 

 

 

 

 

13,20,000

 

13,20,000

 

 

 

 

Answer:

Income and Expenditure Account 

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

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

 

 

 

 

Page No 7.58:

Question 31:

Prepare Income and Expenditure Account  from the following Receipts and Payments Account of Delhi Nursing Society for the year ended 31st March, 2018:
 

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018

Dr.

 

Cr.

Receipts

 

Payments 

              ₹

To Balance b/d (Cash at Bank)
To Subscriptions
To Fees from Non-members
To Government Grant 
To Donations for Building Fund 

To Interest
 

2,01,000
1,11,500
27,000
1,00,000
1,56,000
3,800

By Salaries of Nurses
By Board , Laundry and Domestic Help
By Rent, Rates and Taxes
By Cost of Car
By Expenses of Car
By Drugs and Incidental Expenses
By Balance c/d (Cash at Bank)

65,600
38,000
20,000
2,00,000
84,000
67,000
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, 2018

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

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

 

 

 

 



Page No 7.59:

Question 32:

Following is the Receipts and Payments Account of You Bee Forty Club for the year ended 31st March, 2018:
 

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018

Dr.

 

Cr.

Receipts

 

Payments 

To Balance b/d (cash)
To Subscriptions
     
2016-2017
    
2017-2018

To Donations
To Entrance Fees

 

1,50,000

60,000
3,50,000
50,000
80,000

 

By Salaries and Wages
By Office Expenses
By Sports Equipments
By Telephone Charges
By Electricity Charges
By Travelling Expenses
By Balance c/d (Cash)

1,60,000
35,000
3,40,000
24,000
32,000
65,000
34,000

       

 

 

 

 

 

6,90,000

 

6,90,000

 

 

 

 


Additional information :
(a) Outstanding Subscriptions for the year ended 31st March, 2018​₹ 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, 2018

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Salaries and Wages

1,60,000

 

Subscriptions

3,50,000

 

Add: Outstanding

40,000

2,00,000

Add: Outstanding for 2017-18

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

 

 

 

 

Page No 7.59:

Question 33:

From the following Receipts and Payments Account of Jaipur Sports Club , prepare Income and Expenditure Account for the year ended 31st March, 2018:
 

RECEIPTS AND PAYMENTS Account
for the year ended March 31, 2018
Dr.
 

Cr.

Receipts
Payments
To Balance b/d   2,00,000 By Rent 60,000
To Entrance Fees:     (including ₹15,000 for 2016-17)  
2016-17 10,000
 
By Insurance Premium
60,000
2017-18 50,000 60,000
(including ₹15,000 for 2018-19)
 
 
To Subscriptions:
 
 
By Sports Equipments
50,000
2016-17 10,000   By Furniture 60,000
2017-18(90%) 90,000   (Purchased on 31st March,2018)  
2018-19 5,000 1,05,000 By 8% Fixed Deposit   1,20,000
To Life Membership Fees
20,000 (made on 1st October, 2017)  
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 2016-17)      
   
 
   
 
5,80,000
 
5,80,000
 
 
 
 

Answer:

Income and Expenditure Account

for the year ended March 31, 2018

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Rent

60,000

 

Entrance Fees (2017-18)

50,000

Less: For 2016-17

(15,000)

45,000

Subscription 2017-18

90,000

 

 

 

Add: Outstanding for 2017-18 (9,000 × 10/9 )

10,000

1,00,000

Insurance Premium

60,000

 

Donations 

1,20,000

Less: For 2016-17

(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 2016-17

   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

 

 



Page No 7.60:

Question 34:

Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March ,2018:
 

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March , 2018

Dr.

 

Cr.

Receipts
Payments 

To Opening Cash

18,000 ​By Building          4,00,000
To Donations for Building 4,50,000 By Project Expenses(Young Talent Search and Development)             90,000
To Donations 50,000    
To Government Grant (Young Talent
   Search and Development) 
1,00,000 By Match Expenses
By Match Furniture
            90,000
         1,21,000
To Life Membership Fees 40,000 By 10% Investments          1,60,000
To Match Fund 80,000 ( Purchased on 1st July,2017)  
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 Cash               4,800
   (Book value ₹ 80,000)   By Bank (Young Talent              10,000
To Entrance Fees 50,000      Search and Dev  
   3,000    
       

 

 

 

 

 

9,54,000

 

9,54,000

 

 

 

 


Additional Information:
(i) During the year ended 31st March , 2018, the club had 550 members and each paying an annual subscription of ₹ 100.
(ii) Salaries Outstanding as at 1st April , 2017 were ₹ 10,000 and as at 31st March ,2018 were ₹ 5,000.
Prepare Income and Expenditure Account of the Club for the year ended 31st March , 2018.
 

Answer:

Books of Delhi Football Club 

Income and Expenditure Account 

for the year ended March 31, 2018

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

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

Page No 7.60:

Question 35:

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 , 2018:

Particulars
Sports Fund as on 1st April, 2017
Sports Fund Investments
Interest on Sports Fund Investments
Donations for Sports Fund
Sports Prizes awarded
Expenses on Sports Events
General Fund
General Fund Investments
Interest on General Fund Investment
 3,50,000
 3,50,000
    40,000
 1,50,000
1,00,000
    40,000
 8,00,000
8,00,000
​80,000



 

​ ​

Answer:

Income and Expenditure Account 
for the year ending March 31, 2018
Dr.
 
Cr.
Expenditure
Amount
(₹)
Income
Amount (₹)
 
 
Interest on General Fund Investments
80,000
 
 
 
 
 
Balance Sheet
as on March 31, 2018
Liabilities
Amount
(₹)
Assets
Amount (₹)
Sports Fund
4,00,000
Sports Fund Investment
3,50,000
General Fund
8,00,000
General Fund Investment
8,00,000

Working Notes:

WN1: Calculation of Sports Fund Balance
 
Particulars
Amount
(₹)
Opening Balance in Sports Fund as on April 01, 2017
3,50,000
  Add: Interest on Sports Fund Investments
40,000
  Add: Donation for Sports Fund
1,50,000
  Less: Sports Prizes Awarded
(1,00,000)
  Less: Expenses on Sports Events
(40,000)
Closing Balance of Sports Fundas on March 31, 2018
4,00,000



Page No 7.61:

Question 36:

Following is the summary  of cash transactions of the Royal Club for the year ended 31st March, 2018:
 

RECEIPTS AND PAYMENTS ACCOUNT

Dr.

 

Cr.

Receipts

 

Payments 

To Balance b/d (cash)

31,900 ​By Rent 16,800
To Entrance Fees 25,500 By Wages 24,500
To Subscriptions 1,60,000 By Electricity Charges  7,200
To Donations  16,500 By Honorarium 43,500
To Life Membership Fees  25,000 By Books 21,300
To Profit on Entertainment    5,600 By Office Expenses 45,000
    By 3% Fixed Deposit 80,000
     (1st October, 2017)  
    By Balance c/d (Cash at Bank) 24,200
    By Balance c/d (Cash in Hand)    2,000

 

 

 

 

 

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 ₹ 6,000 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 , 2018 and ist 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, 2018

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income 

Amount

(Rs)

Rent 

16,800

 

Entrance Fees

25,500

Less: Outstanding Rent in the beginning 

6,000

 

Subscriptions

1,60,000