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Page No 1.55:

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 31st 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

       

Page No 1.55:

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 â‚¹ 10,000; Subscriptions â‚¹ 60,000; Donations â‚¹ 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 31st 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 31st Mar, 2019)
17,000
 
 
 
 
 
80,000
 
80,000
       



Page No 1.56:

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 31st 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

 

 

 

 

Page No 1.56:

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 31st 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

Page No 1.56:

Question 5:

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

 

 

 

 

 



Page No 1.57:

Question 6:

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

                                                              
   â‚¹
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 1.57:

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.

Page No 1.57:

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

 

 

 

 

 

 

Page No 1.57:

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.

Page No 1.57:

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 â‚¹ 6,00,000. The construction work is in progress and has not yet completed. Capital Fund as at 31st March, 2018 is â‚¹ 20,00,000.
Case II
Expenditure on construction of Pavilion is â‚¹ 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 â‚¹ 20,00,000.
Case III
Expenditure on construction of Pavilion is â‚¹ 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 â‚¹ 20,00,000. Donation Received for Pavilion on 1st January, 2019 is â‚¹ 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

 

 

 

 

 

 

 



Page No 1.58:

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 â‚¹ 1,00,000.

Case II    During the year ended 31st March, 2019, Entrance Fees received was â‚¹ 1,00,000.Out of this, â‚¹ 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)

 

Page No 1.58:

Question 12:

In the year ended 31st March, 2019, subscriptions received by the Jaipur Literary Society were â‚¹ 4,20,000. These subscriptions include â‚¹ 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

 

 

 

 

Page No 1.58:

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 â‚¹ 200; â‚¹ 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

 

 

 

 

Page No 1.58:

Question 14:

In the year ended 31st March, 2019, subscriptions received by Kings Club, Delhi were â‚¹ 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

 

 

Page No 1.58:

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

 

 



Page No 1.59:

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    â‚¹ 
  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

 

 

 

Page No 1.59:

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 â‚¹ 400 for the year ended 31st March, 2018, â‚¹ 1,200 for the year ended 31st March, 2020 and â‚¹ 300 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

 

 

Page No 1.59:

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 â€‹â‚¹ 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

2,250

Subscriptions Outstanding

3,000

 

 

 

 

 

Balance Sheet

as on March 31, 2019

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Subscription received in Advance

1,350

Subscriptions Outstanding

3,750

 

 

 

 

 



Page No 1.60:

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 31st 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

       

Page No 1.60:

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

   

 

   

 

Page No 1.60:

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 â€‹â€‹â‚¹ 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

 

 

Page No 1.60:

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

 

 

Page No 1.60:

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

 

 

 



Page No 1.61:

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

 

 

 

Page No 1.61:

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

 

 

Page No 1.61:

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 31st March, 2017

37,000

Closing Stock of Sports Material as on 31st March, 2018

55,000

Sports Material sold during the year

50,000

Add: Creditors of the sports material as on 31st March, 2018

45,000

Cash purchase of Sports Material

40,000

Opening Stock of Sports Material as on 31st  March, 2017

50,000

Sports Material consumed during the year to be debited to Income & Expenditure A/c

84,000

 

 

Page No 1.61:

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
 â‚¹

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

Page No 1.61:

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

 

 

 

 

 



Page No 1.62:

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 â‚¹ 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

 

 

 

 

 

Page No 1.62:

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

Page No 1.62:

Question 31:

The book value of furniture on 1st April, 2018 is â‚¹ 60,000. Half of this furniture is sold for â‚¹ 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



Page No 1.63:

Question 32:

Delhi Youth Club has furniture at a value of â‚¹ 2,20,000 in its book on 31st March, 2018. It sold old furniture, having book value of â‚¹ 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 â‚¹ 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

 

Page No 1.63:

Question 33:

In the year ended 31st March, 2019, salaries paid amounted to â‚¹ 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

 

 

 

Page No 1.63:

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  â‚¹ 4,600    â‚¹ 6,300
Advance Locker Rent  â‚¹ 3,000    â‚¹ 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

 

 

 

 

Page No 1.63:

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 â‚¹ 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

 

 

 

 

Page No 1.63:

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 â‚¹ 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

 

 

 

 



Page No 1.64:

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

(₹