CBSE Class 12 Accounting for Not-for-Profit Organizations Notes PDF

For more FREE DOWNLOADS, visit www.aspirationsinstitute.com CHAPTER – 1 ACCOUNTING FOR NOT-FOR-PROFIT ORGANIZATIONS Define NPO NPO's are voluntary organisations founded with objective...

For more FREE DOWNLOADS, visit www.aspirationsinstitute.com CHAPTER – 1 ACCOUNTING FOR NOT-FOR-PROFIT ORGANIZATIONS Define NPO NPO's are voluntary organisations founded with objective of promoting art, culture, education and other social and charitable purpose without any intention of earning profit. For examples hospitals,colleges,schools,universities,religious organisa- tions, culture institutions, professional accounting bodies i.e. ICAIICSI etc. NPO's Profit making entities Difference 1. The ultimate goal is to 1. The ultimate goal is the between NPO's serve the community in- earn profit. and Profit making terest organisation 2.it receives its fund in It receives its fund from its the form of donations, owners or partners, known as subscriptions, etc. known capital as capital fund. 3. Their final accounts Their final accounts includes includes receipt and Trading a/c, Profit & Loss a/c payment a/c, income and balance sheet and expenditure a/c and balance sheet 4. The net result of the The net result of the activities activities of such entities of such entities is known as is known as the surplus/ the profit/loss. deficit Difference between Receipts and payment Income and expenditure receipts and account account payment account It is prepared on the It is like p & l a/c i.e. It is a and income and basis of cash book Nominal A/c expenditure a/c or It is real account It records only revenue features of receipts It records all types of transactions related to and payment transactions whether current year only i.e. after account and income revenue or capital nature adjustments and expenditure and relates to any year If follows accrual basis of account accounting 1 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com It follows cash basis of It does not have an opening accounting. balance. At the end it shows It starts with the opening the surplus i.e. excess of inco balance of cash and bank me over expenses or deficit and ends with closing i.e. excess of expenses over balance of cash and bank income Difference between Receipt and payment Cash book receipt and payment account a/c and cash book It is prepared by not for It is prepared by all the or- profit organisation. ganisations. It is prepared on the ba- It is prepared on the basis of sis of cash book. source documents/vouchers. It is prepared at the end It is recorded on daily basis. of accounting year. Difference between Income and expenditure Profit and loss a/c income and expen- a/c diture a/c and profit It is prepared by not for It is prepared by profit making and loss a/c profit organisation organisations It is prepared on the It is prepared on the basis of basis of receipt and trial balance and other infor- payment a/c and other mation. The main objective is information to find net profit or loss. The main objective is to find out surplus or deficit Fund based It refers to the accounting whereby receipts and incomes accounting related to a particular fund like building fund sports fund, prize fund etc. Credited to that particular fund and pay- ments like construction of building expenses on sports, prizes distributed etc. Debited to it. Therefore receipts and payments on account of such funds are not recorded in the income and expenditure account [Class XII : Accountancy] 2 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Treatment of items definition Treatment Treatment in specific in income balance sheet items and expen- diture ac- count Subscripton It is the preiodical As an Outstanding amount paid/ contrib- income as an asset uted by the members and advance at regular interval. It received as a will be treated as rev- liabilities enue receipt. Consumable Consumable amount as an Stock of expenditure items like sta- will be treated as consumable tionery, medi- revenue expenditure item as an cines, books, Asset, prepa sports mate- id expenses rial etc. related to it as an asset and outstanding expenses related to it as a liabilities Donation It is the amount do- General Specific nated by any person, donation donation as it may be of two types will be a liabilities 1. general donation-it shown as can be used for any an income purpose, it will be treated as revenue receipts 3 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com 2. Specific donation like donation for library-it can be used only for specific purpose, it will be treated as capital receipts. Any expenses related to it will be deducted from it in balance sheet Entrance/ It is received the As an from admis- new members at the time income sion fees of admission/entrance in the organisation. It will be treated as revenue receipt. Sale of old lt will be treated as revenue As an sports receipts income materiaL sale of old newspapers /periodicals, general government grant-interest received on fixed deposit/inv estment, pr oceeds from show, locker rent Life Some club and societies As a membership members can make a Liabilities Fees payment for life memb- ership i.e. they can enjoy the facilities of the club/ societies for the rest of the life. It will be treated as capital receipts [Class XII : Accountancy] 4 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com legacy It is in nature of gift As a in cash or property liabilities as per the will.it will be treated as capital receipts endowment It is a fund arising As a fund from bequest or gift, liabilities the income of which is devoted to a specific purpose as specify by the donor. It will be treated as capital receipt honorarium It is the amount paid to As an the person(outsider) expenses to reimburse the actu- al expenses incurred for delivering a lec- ture or giving his per- formance as an artist. It will be treated as revenue expenditure upkeep of Treated as revenue As expenses lawn, maint expenses. enance of ground, nor mal repair charges, municipal taxes, expenses on show, news paper, magazines, rent, insurance 5 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com sale/ It will not be shown in Profit on sale Purchase in purchase the income and expen- as an income asset added of fixed diture account, howev- and loss/ and book value assets like er profit or loss on sale depreciation of asset sold furniture, of fixed asset and de- as an deducted from building, preciation will be treated expenditure relevant asset sports as revenue item. equipment, books, investment, treatment It will be treated as If fund is As an liabilities of specific capital receipts, any less than the funds like expenses related to expenditure sports it will not be shown in related to it fund,prize income and expenditure than fund,tourna account i.e. deducted difference ment fund from relevant fund in will be as an the balance sheet. expenses etc. Specific Sometimes As an asset fund organisation invested investment the specific fund into like sports outside in specified fund securities,called specific investment, fund investment..it will prize fund be treated as capital investment, expenditure. tournament fund investment Interest Interest received will Added in on specific be treated as capital relevant fund fund receipt and added in investment the relevant fund in the balance sheet [Class XII : Accountancy] 6 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Outstanding It will be treated as Added in interest on capital item relevant fund specific fund and also as an investment asset General General fund will be Interest as General fund, treated as capital an income fund as a general receipt, general fund liability and fund investment as capital general fund investment, expenditure and interest investment as interest on as a revenue receipt. an asset general fund investment Grant It is an amount of money General Special grant given specially by the grant as an as a liabilities government. It may be income of two types. 1. General grant it can be used for any purpose. it will be treated as revenue receipts 2. Special grant-it can be used only for specific purpose. it will be treated as capital receipts. Any expenses related to it will be deducted from it in balance sheet 7 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Important formats Total Subscription/Income/Expense for CY 1st January20..... 31st (opening) December 20.... (closing) ← Outstanding(-) xxxxx ← Outstanding (+) xxxxx (+) Advance/Prepaid→ xxxxx (-)Advance/Prepaid→ xxxxx Subscription Account Particulars Amounts Particulars Amounts To Balance b/d(Out. at the xxxxx By Balance b/d(Adv. xxxxx beg) at the beg) To Income & Expenditure xxxxx By Cash A/c(Sub. xxxxx A/c(bal. fig.) received during the To Balance c/d (Adv. at the xxxxx year) end) By Bad debts(if any) xxxxx By Balance c/d(Out. At the end end) xxxxx xxxxx Statement showing calculation of subscription Total Subscription received during the year(whether relates xxxxx to any year) Less: Subscription o/s at the beg. Of current year xxxxx Less: Advance Subscription received during the current xxxxx year(relates to any future period) Add: O/s Subscription at the end of current year(including xxxxx sub. o/s for p/y year till the end of current year) Add: O/s Subscription received in advance at the end of xxxxx current year Subscription to be shown in income and expenditure a/c xxxxx [Class XII : Accountancy] 8 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Note- subscriptions o/s as on means total o/s subscription on a particular date(including previous year o/s if any till date) and subscription o/s for the year means only relates to current year, for at the end we have to add o/s for p/y till date in this. Treatment Of Consumable Items Illustration: From the following information, calculate the amount of stationery to be debited to the income and expenditure account of a charitable trust RECEIPTS AND PAYMENT ACCOUNT(AN EXTRACT). For the year ended 31st march 2018 Receipts amount Payments amount To sale of 120000 By creditors for 300000 stationery (book stationery value Rs. 90000) By cash purchases 100000 of stationery ADDITIONAL INFORMATION: Particulars AS at 1st April ,2017 As at 31st March,2018 Stock of stationery , 75000 100000 Creditors of stationery 30000 70000 Advance paid for 10000 15000 stationery Answer: Payments made during the year as per 300000 Treatment of items receipts and payment account Add: advance payments for stationery at the 10000 Asset on 31/3/17 end of PY or in the beginning of current year 9 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Less: Creditors for stationery at 30000 Liabilities on 31/3/17 the end of PY or in the beginning of current year Less: advance payments for 15000 Asset on 31/3/18 stationery at the end of current year Credit purchase during the year 335000 Add: cash purchases (if any) 100000 Total purchase during the year 435000 Add: opening stock of stationery 75000 Asset on 31/3/17 Less: closing stock of stationery 100000 Asset on 31/3/18 90000 Less: sale of stationery ( cost price) if any Amount of stationery consumed 320000 Expenses in income and expenditure account NOTE: if purchase of consumable item is given instead of payment than o/s creditors and advance paid to creditors will not be adjusted (add or less) in the above format. In this case consumed amount will be= op. Stock+purchases- closing stock- sale of consumable item (if any) Credit Purchase Payment made to creditors xxxxx Add: Closing balance of Creditors xxxxx Less: Opening balance of Creditors xxxxx Credit purchase of consumable items xxxxx Receipt and Payment Account Receipts Amount Payments Amount Balance b/d Balance b/d Cash at Bank(overdraft) xxxxx Cash in hand xxxxx Capital payments: Cash at bank xxxxx Building construction [Class XII : Accountancy] 10 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Capital Receipts: Sports equipments or xxxxx materials Legacies xxxx Cost of leasehold land xxxxx Sale of office furniture xxxxx Investments xxxxx Sale of sports equipments xxxxx Advance for purchase of xxxxx buildings Donations for special Government's loan xxxxx purposes e.g., building, prizes etc. Furniture xxxxx Life membership fees xxxxx Revenue payments: xxxxx Sale of investments xxxxx Prizes paid xxxxx Endowment fund receipts xxxxx Entertainment expenses xxxxx Printing and stationery xxxxx Receipt on account of xxxxx Newspapers and xxxxx special funds e.g., Prize periodicals fund, tournament fund etc. Interest on specific fund Repairs xxxxx Investments xxxxx Postages xxxxx Entrance fees xxxxx honorarium xxxxx Revenue Receipts: xxxxx Expenses on special food xxxxx to patients Subscriptions xxxxx Insurance, rent, salaries xxxxx General donations xxxxx Advertisement xxxxx Proceeds from xxxxx Audit fee xxxxx entertainments Interest or dividends xxxxx sale of old newspapers, xxxxx Telephone, electric charge xxxxx waste papers etc. Miscellaneous receipts xxxxx Gardening xxxxx Balance c/d xxxxx 11 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Cash at bank (Bank xxxxx Bar expenses xxxxx overdraft) Up-keep of lawns xxxxx Municipal taxes xxxxx Charity xxxxx Printing of year book xxxxx Drawings xxxxx Balance c/d (closing xxxxx balance) Cash in hand xxxxx Cash at bank xxxxx xxxxx xxxxx Note: There will be either or the two amounts i.e., bank overdraft or cash at bank and not both. Income and Expenditure Account Expenditure Amount Income Amount Expenses account(e, g, salary): Income Account: (e.g., Total salaries paid during the subscriptions) year xxxxx Total amount of subscriptions received Add: Outstanding at the end during the year xxxxx xxxxx Add: Outstanding at the end Less: outstanding in the Less: outstanding in the beginning xxxxx beginning xxxxx (or accrual amount paid for last (or actual amount of last year) year received Add: Advance paid in the this year) previous year xxxxx Add: Advance received last Less: Advance paid for the year xxxxx salaries in the current year Less: Advance received this xxxxx xxxxx year xxxxx Salary of the year xxxxx Expenses on consumable xxxxx Current Income: xxxxx materials: (e.g., stationery) Profit on sale of asset : Sale price of the asset xxxxx [Class XII : Accountancy] 12 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Opening stock of Less: Book value of the asset stationary xxxx sold xxxxx _______ Add: Purchases during the year xxxx Net profit on sale xxxxx Less: Creditors for stationery in the Receipts for specific items beginning xxxx xxxx Add: Creditors for (Cinema shows) stationery at the end xxxx Add: Advance payments Less: Amount spent xxxx for stationery last year xx Less: Advance payments Net Income on specific item: xxxxx for stationery in the current year xxxxx Other income and gains with xxxxx Less: Stock of stationery adjustments at the end xxxxx Stationery actually xxxxx Excess of Expenditure over xxxxx consumed Income to be deducted from Loss on the sale of an the Capital Fund in the Balance asset: Sheet (Balancing Figure) Book value of the asset Less: Sale price Net loss on sale xxxxx Other expenses and losses after necessary xxxxx adjustments Expenses for specific purpose (e.g., cinema shows) Expenses paid xxxxx Less: Collection xxxxx Net expenses of specific xxxxx item Depreciation xxxxx Excess of Income over Expenditure to be added xxxxx to Capital Fund in the Balance Sheet (Balancing Figure) xxxxx xxxxx Note: Either of the two balancing figue at the end. 13 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Balance Sheet As on........... Liabilities Amounts Assets Amounts Capital Fund: Assets: Opening Balance xxxx Last Balance xxxx Add: Excess of Income over Add: Purchase in the Expenditure xxxx current year xxxx Closing Balance xxxxx Or Stock of xxxxx Consumable Less: Excess of xxxxx Materials Expenditure over xxxx Balance as given in the Income question Capitalised Income of xxxxx Or the Current year Last Balance xxxx on account of: Add: Purchase Legacies xxxxx during the year xxxx Life Membership Fees Less: Value (These may be added to xxxxx consumed during Capital Fund too) the year xxxx Special Fund/Donations Closing Balances: xxxxx Last Balance (if any) xxxx Cash in hand xxxxx Add: Receipts for the item Cash at bank in during the year xxxx Current Account, xxxxx Add: Income earned on Fixed Fund Investment xxxx Deposit Account xxxxx Less: Expenses paid out of etc. Fund/Donations xxxx Outstanding Income Creditors for Purchases of Last Balance xxxx Supplies xxxxx Less: Received in the Bank Overdraft (at the end) xxxxx Current year xxxx xxxxx Outstanding Expenses Net Balance xxxxx Last Balance b/d xxxxx Pre-paid Expenses at xxxxx Less: Paid during the year the end Add: Outstanding at the end xxxxx Income Received in xxxxx Advance at end xxxxx xxxxx [Class XII : Accountancy] 14 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Receipt and Payment Account For the Year Ended 31.12.2017 Its left hand side is called "Receipts" and right hand side "payments". On the left hand side all cash receipts are recorded, while on the right hand side all cash payments are recorded arranged in a classified form. It starts with last year's closing cash in hand and cash at bank and closes with current year's closing cash in hand and cash at bank. In other words, its opening balance indicates last year's closing cash in hand and cash at bank, while its closing balance means current year's closing cash in hand and cash at bank. Example: From the following cash book prepare receipts and payments account for the year ended 31 December 2017. Cash Book Dr. Cr. Date Particular L/R Amount Date Particular L/R Amount 2017 2017 Jan. 1 Balance b/d 250 Jan. 5 Rent 200 Feb. 2 Subscription 600 Jan.16 Traeveling expenses 15 Mar. Admission 25 Fed. Salaries 250 10 fee 12 Apr.5 Subscription 950 Mar. 17 Entertainment 50 expenses May. Sale of old 10 Apr. 20 Electric 20 20 newspapers charges June Subscription 880 May Furniture 300 3 5 July Adimission 30 May Postage 18 15 fee 10 Aug. Sale of old 15 June Sattionary 120 20 newspaper 3 15 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Sep. Donation 100 July Electric 30 5 12 charges Oct. 1 Sale of old 150 Aug. 3 Newspaper 25 furniture Nov. Donation 50 Sep. Salaries 320 15 15 Dec. Subscription 250 Sep. Newspaper 65 28 20 Oct. 3 Traveling 25 expenses Oct. 12 Postage 12 Nov. 5 Rent 300 Now. Entertainment 80 16 expenses Dec. 5 Books 450 Dec. Salaries 350 12 Dec. Rent 130 25 Dec. Blance c/d 550 31 ----------- ----------- 3,310 3,310 2018 ----------- ------------ Jan. 1 550 [Class XII : Accountancy] 16 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Solution: ABC Club Receipt and Payment Account For the year ended 31st December, 2017 Receipts AMOUNT Payments AMOUNT Balance b/d 250 Rent [200+300+130] 630 Subscription 2,680 Traveling expenses 40 [600+950+880+250] [15+25] Admission fee [25+30] 55 Salaries [250+320 + 350] 920 Sale of old newspaper 25 Entertainment expenses 130 [10+15] [50+80] Donation [100 + 50] 150 Electric charges [20+30] 50 Sale of old furniture 150 Furniture 300 Postage 30 [18+12] Stationary 120 Newspaper [25+65] 90 Books 450 Balance c/d 550 -------------- ------------- 3,310 3,310 -------------- ------------- Balance b/d 550 17 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Illustration : - 1 Rs. Subscription received during 2017-18 50,000 Subscription outstanding on 31-3-18 8,000 Subscription outstanding on 1-04-17 6,000 Subscription received in advance on 31-3-18 3000 Subscription received in advance on 31 -3-17 5000 calculate the amount of subscription to be credited to Income & Expenditure a/c for the yr. 2017-18. Ans.l Rs. Subscription received during the yr. 50,000 Add: Subscription outstanding on 31-3-18 8000 Add: subscription received in advance on 31 -3-17 5000 --------------- 63,000 Less: Subscription outstanding on 1-04-17 6,000 Less: Subscription received in advance on 31-3-18 3000 Amount to be credited to Income & Expenditure A/c ==== → 54,000 Illustration : - 2 Rs. DELHI Club received subscription during the yr. 2015-16 1,50.000 Subscription received in advance on 31 -3-15 4,500 Subscription received in advance on 31 -3-16 5,100 Subscription outstanding on 31-3-16 for 2015-16 3,800 Subscription outstanding 2014-15 (of which Rs.4,000 received in 2015-16) 6,000 Calculate the subscription to be taken to Income & Exp. a/c for 2015-16. Ans. 2 Rs. Total Subscription Received during the yr. 2015-16 1,50,000 Add: Sub. Outstanding for 2015-16 5,800 [Class XII : Accountancy] 18 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Sub. Received in advance on 31-3-15 4.500 --------------- 1,60,300 Less: Sub received in advance on 31-3-16 5,100 Sub. Outstanding on 31-3-15 6000 11,100 Sub for 2015-16 to be taken to Income & Exp. a/c. ====→ Rs. 1,49,200 -------------- Illustration :- 3 Ascertain the amount of salary chargeable to Income & Expenditure A/c for 2016-17 Rs. Total salaries paid in 2016-17 10,200 Prepaid salaries on 31 -3-2016 1,200 Prepaid salaries on 31-3-2017 600 Outstanding salaries on 31-3-2016 900 Outstanding salaries on 31-3-2017 750 Ans. 3 Rs. Total Salaries paid in 2016-17 10,200 Add: - Outstanding salaries on 31 -3-17 750 Prepaid salary on 31-3-16 1,200 ------------- 12,150 Less:-Outstanding on 31-3-16 - 900 Prepaid on 31-3-17 - 600 1,500 ---------- ------------ Salaries dr. to Income & Exp. A/c for 2016-17 10,650 Illustration: - 4 How would you deal with the following items in the Balance sheet of a NPO? Rs. 1. Donations received for Auditorium construction (Expected total cost of the auditorium Rs.40,00,000) 25,00,000 2. Expenditure on construction of Auditorium 21,00,000 3. opening balance of Auditorium fund 1,00000 4. 10% Auditorium fund INVESTMENT 2000000 5. INTEREST ON Auditorium fund INVESTMENT 150000 19 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Ans. 4 Balance Sheetf (As at=====) Liabilities Amount Assets Amount Capital Fund xxx Auditorium in 21,00,000 Progress Add: Transfer From Auditorium 21,00.000 fund 10% Auditorium 2000000 Auditorium Fund 100000 fund INVESTMENT Add: Donation 25,00,000 Accrued Interest Less: Transferred to o n A u d i t o r i u m 50000 fund Capital fund 21.00.000 investment 5,00,000 Add: INTEREST ON Auditorium fund INVESTMENT 200000 (150000+50000).............. 700000 Illustration 5 Prize fund (1-4-16) 10000 Donation for prize fund 20000 5% prize fund investment 10000 Expenditure on prize distribution 50000 Interest on 5% prize fund investment 500 [Class XII : Accountancy] 20 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Ans.5. Income & Expenditure A/c (Year ended on 31s' March 2017) Expenditure Rs. Income Rs. Distribution of prize 19500 Balance Sheet as at 31.3.2017 Liabilities Rs. Assets Rs. Prize fund 10000 Add: Donation for prize fund 20000 Add: Interest on 5% prize Fund investment 500 ----------- 30500 Less: Distribution of Prize ********* 30500 Illustration 6 :- From the following particulars of DELHI Charity Hospital, perpare Income & Expenditure a/c & the balance sheet as on 31st March 2017. Receipts Rs. Payments Rs. To Cash in hand 1/4/16 7,130 By Medicines 30,590 To Subscriptions 47,996 By Doctor" s Honorarium 9,000 To Donations 14,500 By salaries 27,500 To Interest® 7% on Bank Fixed Deposit For full yr. 7,000 Petty expenses 461 By Equipments 15,000 21 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com To charity show 10,450 By charity show expenses 750 proceeds Cash in hand 31/3/2017 3,775 87,076 87,076 Additional information: 1/4/2016 Rs. 31.3.2017 Rs. Subscription due 240 280 Subscription received in advance 64 100 Stock of medicines 8810 9740 Estimated value of equipment 21200 31600 Building (Cost less depreciation) 40000 38000 Ans. 6. Income & Expenditure A/c (Year ended on 31s' March 2017) Expenditure Rs. Income Rs. To Medicines consumed By Subscriptions 47996 Opening stock 8810 Add:O/S(of2017) 280 Add: Purchases 30590 Advin 2016 64 Less: Closing, stock 9740 29660 Less: O/S (of 2016) 240 Adv of 2017 100 48000 To Doctor's honorarium 9000 By Donations 14500 To salaries 27500 By Interest on Bank FD 7000 To petty expenses 461 By charity show proceeds 10450 To expenses charity show 750 To Depreciation: Equipment 4600 Building 2000 [Class XII : Accountancy] 22 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com To Surplus 5979 79950 79950 Balance Sheet as at 31.3.2017 Liabilities Rs. Assets Rs. Advance Subscription 100 Cash in Hand 3775 Capital Fund 177316 Subscription o/s 280 Add: Surplus 5979 183295 Stock of Medicines 9740 Bank Fixed Deposit 100000 Equipments Op. 21200 + Purchases 15000 31600 -Depreciation 4600 Building 40000 - Depreciation 2000 38000 183395 183395 Balance Sheet as at 31.3.2016 Liabilities Rs. Assets Rs. Advance Subscription 64 Cash 7130 Capital Fund (Bal. fig.) 177316 Subscription o/s 240 Stock of Medicines 8810 Bank Fixed Deposit 100000 Equipments 21200 Building 40000 177380 177380 Working Notes: - 1. Bank Deposit 7000 × 100 = Rs. 100000 7 2. Depreciation has been calculated on the basis of: (Opening balance of the Asset + Purchases of Assets during the yr.) - the Closing balance of the Asset 23 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com ILLUSTRATION 7. Prepare Income & Expenditure A/c & Balance Sheet of SPORTS Club DELHI for the yr. ended 31st march. 2017 from the following: Receipts & Payments A/c (Year ended 31-3-2017) Receipts Rs. Payments Rs. Cash in hand b/d 4500 Salaries (11 months) 1100 Subscriptions: 2015-16 – 100 2700 Tournament exp. 1600 2017-18- 2400 2018-19- 200 Investments 1000 Furniture 400 Sale of old furniture 140 Stationery 1200 (Costing Rs.200) Tournament Receipts 2000 Sports expenses 15000 Sports Fund 10000 Misc. expenses 200 Donations for Sports 3000 Rent paid up-to may. 1400 2017 Cash in hand 440 22340 22340 The club has 300 members each paying an annual subscription of Rs.10. Rs.70 are still outstanding for the yr2015-.2016. In 2015-2016, 10 members had paid their subscription for 2017 in advance. Stock of stationery in 2016 was Rs. 100 & in 2017 Rs. 140. On 1-4-2016, club owned Land & Building valued at Rs. 20.000& furniture of Rs. 1300. Interest accrued on investment @6% p.a. for 3 months for 2016-17 [Class XII : Accountancy] 24 For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Ans. 7 Income and Expenditure A/c (Year ended 31st march 2017) Expenditure Rs. Income Rs. To Loss on sale of furniture 60 By Subscriptions 2700 3000 Less: O/s (2015-16) 170 Less: Advance (2018-19) 200 Add: Advance (2016-17) 100 Add: O/s (2017-18) 570 To sports expenses 2000 To Salaries 1100 By Tournament Receipts 2000 Add: Outstanding 100 1200 By Accrued interest 15 To Tournament exp. 1600 By Deficit 2405 To stationery Op. Stock100 Add: Purchases 1200 Less: Closing stock 140 1160 To Misc. Exp. 200 To Rent 1400 1200 Less: Prepaid 200 7420 7420 Balance Sheet as at 31.03.2017 Liabilities Rs. Assets Rs. Advance Subscriptions 200 Cash in hand 440 Salary o/s 100 Prepaid Rent 200 Capital Fund 25970 Subscription 500 570 Less: Deficit 2405 23565 Add: O/s 70 25 [Class XII : Accountancy] For more FREE DOWNLOADS, visit www.aspirationsinstitute.com Accrued Interst 15 Stock of stationery 140 Investment 1000 Furniture 1300 1500 Add: Purchase 400 Less: Sold 200 Land & Building 20000 23865 23865 Balance Sheet as at 31.03.2016 Liabilities Rs. Assets Rs. Advance Subscription 100 Cash in hand 4500 Capital Fund (Bal fig) 25970 Subscription o/s 170 Stock of stationery 100 Furniture 1300 L and & Building 20000 26070 26070 [Class XII : Accountancy] 26 Source: EDUDEL