Numerical Questions Solutions

This page contains the CBSE accountancy class 12 chapter Accounting for Not-for-Profit Organisation nuerical questions solutions. You can find the questions/answers/solutions for the chapter 1 of CBSE class 12 accountancy in this page. So is the case if you are looking for CBSE class 12 Commerce related topic Accounting for Not-for-Profit Organisation Numerical Questions Solutions. If you’re looking for theoretical questions related to Test Your Understanding, Do It Yourself, Short Answers or Long Answers, you can find them at Accounting for Not-for-Profit Organisation

Numerical Questions Solutions
1. From the following particulars taken from the Cash Book of a health club, prepare a Receipts and Payments Account.
Opening balance:
Cash in Hand
5,000
Cash at Bank
25,000
Subscriptions
1,65,000
Donations
35,000
Investment Purchased
80,000
Rent Paid
20,000
General Expenses
21,500
Postage and stationery
2,000
Courier charges
1,000
Sundry Expenses
2,500
Closing Cash in Hand
12,000
Receipts
Amount
Payments
Amount
To Balance b/d
By Investment Purchased A/c
80,000
Cash in Hand
5,000
By Rent A/c
20,000
Cash at Bank
25,000
30,000
By General Expenses A/c
21,500
To Subscriptions A/c
1,65,000
By Postage and stationery A/c
2,000
To Donations A/c
35,000
By Courier charges A/c
1,000
By Sundry Expenses A/c
2,500
By Balance c/d
Cash in Hand
12,000
Cash at Bank
(Balancing figure)
91,000
1,03,000
2,30,000
2,30,000

2. The Receipt and Payment Account of Harimohan charitable institution is given:
Receipt and Payment Account for the year ending March 31, 2015
Receipts
Amount
Payments
Amount
Balance b/d
Furniture
3,000
Cash at Bank
22,000
Investments
55,000
Cash in Hand
8,800
Advance for building
20,000
Donations
16,000
Charities
60,000
Subscriptions
50,200
Salaries
10,400
Endowment fund
60,000
Rent and Taxes
4,000
Legacies
12,000
Printing
1,000
Interest on Investment
3,800
Postage
300
Interest on Deposits
800
Advertisements
1,100
Sale of old newspapers
500
Insurance
4,800
Donation for building
16,000
Balance c/d:
Legacy for building
12,000
Cash at bank
32,000
Cash in hand
10,500
2,02,100
2,02,100
Prepare the Income and Expenditure Account for the Year ended on March 31, 2015 after considering the following:
(i)
Liabilities to be provided for are:
Rent ₹ 800; Salaries ₹ 1,200; advertisement ₹ 200.
(ii)
₹ 2,000 due for interest on investment was not actually received.

Expenditure
Amount
Income
Amount
To Charities A/c
60,000
By Donations A/c
16,000
To Salaries A/c
10,400
By Subscriptions A/c
50,200
Outstanding Salaries
1,200
11,600
By Legacies A/c
12,000
To Rent and Taxes A/c
4,000
By Interest on Investment A/c
3,800
Outstanding Rent
800
4,800
Accrued Interest
2,000
5,800
To Printing A/c
1,000
By Interest on Deposits A/c
800
To Postage A/c
300
By Sale of old newspapers A/c
500
To Advertisements A/c
1,100
Outstanding Advertisement Expenses
200
1,300
To Insurance A/c
4,800
To Surplus A/c
(Excess of Income over Expenditure)
1,500
85,300
85,300
Note: The payments for Furniture, Investments and Advance for building are capital in nature. So, they are not entered in the Income and Expenditure Account. Similarly, the Cash at Bank, Cash in Hand, Endowment Fund, Donation for building, Legacy for building are receipts which are capital in nature. So, they are not entered in the Income and Expenditure Account.

3. From the following particulars, prepare Income and Expenditure account:
Details
Amount
Fees collected, including ₹ 80,000 on account of the previous year
5,20,000
Fees for the year outstanding
30,000
Salary paid, including ₹ 5,000 on account of the previous year
68,000
Salary outstanding at the end of the year
3,000
Entertainment expenses
8,000
Tournament expenses
25,000
Meeting Expenses
18,000
Traveling Expenses
7,000
Purchase of Books and Periodicals, including ₹ 31,000 for purchase of Books
40,000
Rent
15,000
Postage, telegrams and telephones
6,000
Printing and Stationery
18,000
Donations received
25,000
Expenditure
Amount
Income
Amount
To Salaries A/c
68,000
By Fees collected
5,20,000
Outstanding salaries
(5,000)
in the current year
from previous year
63,000
Outstanding Fee
(80,000)
Outstanding salaries
3,000
66,000
from previous year
4,40,000
in the current year
Outstanding Fee
30,000
4,70,000
To Entertainment Expenses A/c
8,000
in the current year
To Tournament Expenses A/c
25,000
By Donations A/c
25,000
To Meeting Expenses A/c
18,000
To Travelling Expenses A/c
7,000
To Purchase of Periodicals A/c (40,000 – 31,000)
9,000
To Postage, Telegrams and Telephones A/c
6,000
To Rent A/c
15,000
To Printing and Stationery A/c
18,000
To Surplus A/c
(Excess of Income over Expenditure)
3,23,000
4,95,000
4,95,000
Note: Purchase of books is capital expenditure. So, only the cost of periodical is consider as it is revenue expenditure.
So, Cost of Periodicals = Total CostCost of Books
= 40,000 – 31,000
= 9,000

4. 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:
Sports Fund as on 1.4.2015
35,000
Sports Fund Investments
35,000
Interest on Sports Fund
4,000
Donations for Sports Fund Investment
15,000
Sports Prizes awarded
10,000
Expenses on Sports Events
4,000
General Fund
80,000
General Fund Investments
80,000
Interest on General Fund Investments
8,000
Expenditure
Amount
Income
Amount
By Interest on General Fund Investments
8,000
Balance Sheet of Sports Club
for the year ending March 31, 2016
Liabilities
Amount
Assets
Amount
Sports Fund
35,000
Sports Fund Investments
35,000
Interest on Sports Fund
4,000
39,000
General Fund Investments
80,000
Donations for Sports Fund
15,000
54,000
Sports Prizes awarded
(10,000)
44,000
Expenses on Sports Events
(4,000)
40,000
General Fund
80,000

5. How will you deal with the following items while preparing for the Bombay Women Cricket Club its income and expenditure account for the year ending 31.3.2017 and its Balance Sheet as on 31.3.2017:
(a)
Donation received during the year for the construction of a permanent Pavilion
12,25,000
Expenditure incurred up to 31.3.2017 on its construction
10,80,000
The total estimated expenditure on construction of Pavilion being
25,00,000
(b)
Tournament Fund:
Balance as on 1.4.2016
10,700
Subscriptions for tournament received during the year
65,800
Expenditure incurred during the year on conducting tournaments
72,400
(c)
Life Membership fee received during the year
28,000
Give reasons for your answers.
Reasining for (a): As the donation received for the construction of pavilion is Specific Donation i.e. For the construction of pavilion. So, it should be capitalised and will not be shown in the Income and Expenditure account. It should be shown on the Liabilities side of the Balance Sheet along with its expenses.
Reasining for (b): Tournament fund is fund for specific purpose and should be capitalised. So, it should be capitalised and will not be shown in the Income and Expenditure account. It should be shown on the Liabilities side of the Balance sheet along with its expenses.
Reasining for (c): Life membership fee is capital receipt. So, it should be capitalised and will not be shown in the Income and Expenditure account. It should be shown on the Liabilities side of the Balance sheet along with its expenses.
Balance Sheet of Bombay Women Cricket Club
as on March 31, 2017
Liabilities
Amount
Assets
Amount
(a) Donation for Pavilion
12,25,000
Pavilion constructed
10,80,000
Expenditure incurred on
construction of pavilion
(10,80,000)
1,45,000
so far
Pavilion
10,80,000
(b) Tournament Fund
10,700
Subscription for Tournament
65,800
76,500
Tournament Expenses
(72,400)
4,100
(c) Life Membership Fees
28,000

6. From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Orgnisation as on December 31, 2017.
Receipts
Amount
Payments
Amount
Balance b/d
General Expenses
3,200
Cash in hand
4,000
Newspaper
1,850
Cash at Bank
15,550
Electricity
3,000
Subscriptions
Fixed deposit with bank
18,000
2016
1,200
(on 31.06.2017) @ 10% p.a.
2017
26,500
Books
7,000
2018
500
28,200
Salary
3,600
Sale of old newspapers
1,250
Rent
6,500
Govt. grant
12,000
Postage charges
300
Sale of old furniture
3,700
Furniture (purchased)
10,500
(book value ₹ 5000)
Balance c/d
Interest received on FD
450
Cash in hand
3,000
Cash at bank
8,200
65,150
65,150
Information:
(i)
Subscription outstanding as on 31.12.2016 were ₹ 2,000 and on December 31, 2017 were ₹ 1,500
(ii)
On December 31, 2017 Salary outstanding was ₹ 600, and one month Rent paid in advance.
(iii)
On Jan. 01, 2016 organisation owned Furniture ₹ 12,000, Books ₹ 5,000.

Working Notes:
Furniture
Book value of furniture
5,000
Sold value
3,700
Loss on sale
1,300
Interest on FD
Interest for 6 months
(June 31, 2017 to December 31, 2017)
= 18,000 × \dfrac{10}{100} × \dfrac{6}{12}
= 900
Interest Received on FD
450
Accrued Interest (Interest yet to be received)
450
Rent
Rent for 2017 + One Month Prepaid
(For 13 months)
6,500
Prepaid Rent one Month
= 6,500 × \dfrac{1}{13}
= 500
Expenditure
Amount
Income
Amount
To Loss on sale of old Furniture
1,300
By Subscriptions
25,500
To General Expenses
3,200
Outstanding Subscriptions
1,500
28,000
To Newspaper
1,850
By Sale of old newspapers
1,250
To Electricity
3,000
By Govt. grant
12,000
To Salary
3,600
By Interest received on FD
450
Outstanding Salary
600
4,200
Accrued Interest
450
900
To Rent
6,500
Prepaid Rent
(500)
6,000
To Postage Charges
300
To Surplus
(Excess of Income over Expenditure)
22,300
42,150
42,150
Opening Balance Sheet:
Balance Sheet of Adult Literacy Organisation as on December 31, 2016
Liabilities
Amount
Assets
Amount
Capital Fund
38,550
Outstanding Subscriptions
2,000
(Balancing Figure)
Furniture
12,000
Books
5,000
Cash at Bank
15,550
Cash in Hand
4,000
38,550
38,550
Balance Sheet of Adult Literacy Organisation as on December 31, 2017
Liabilities
Amount
Assets
Amount
Capital
38,550
Outstanding subscriptions
1,500
Surplus
22,300
60,850
Outstanding subscriptions
800
2,300
Outstanding Salaries
600
from 2016
Subscriptions received
500
Fixed Deposit
18,000
in advance
Accrued Interest
450
18,450
Books
5,000
Purchases
7,000
12,000
Prepaid Rent
500
Furniture
12,000
Purchases
10,500
22,500
Sale
(5,000)
17,500
Cash in Hand
3,000
Cash at Bank
8,200
61,950
61,950

7. The following is the Receipt and Payment Account of the Nari Kalayan Samittee for the year ended December 31, 2017:
Receipts
Amount
Payments
Amounts
Balance from last year b/d
2,270
Rent
6,600
Subscriptions
32,500
Electric charges
3,200
Life membership fee
3,250
Lecturer’s fee
730
Donation
2,500
Office expenses
1,480
Profit from entertainment
7,250
Printing and Stationery
1,050
Sale of old Books
750
Legal fee
1,870
(books value ₹ 1,000)
Books
6,500
Interest
350
Furniture purchased
8,600
Expenses on nukar drama
1,300
Balance c/d:
Cash in hand
8,040
Cash at bank
9,500
48,870
48,870
You are required to prepare an Income and Expenditure Account after the following adjustments:
(a)
Subscription still to be received are ₹ 750, but subscription include ₹ 500 for the year 2018.
(b)
In the beginning of the year the Samiti owned building ₹ 20,000 and furniture ₹ 3,000 and Books ₹ 2,000.
(c)
Provide depreciation on furniture @ 5% (including purchase ), books @ 10% and building @ 5%.

Working Notes:
Amount
Books at the start of year
2,000
Books Sold out
(1,000)
New Books Purchased
6,500
7,500
Depreciation on Books @ 10%
{= 7,500 × \dfrac{10}{100}}
750
Furniture at the start of year
3,000
New Furniture purchased
8,600
11,600
Depreciation on Furniture @ 5%
{= 11,600 × \dfrac{5}{100}}
580
Depreciation on Building @ 5%
{= 20,000 × \dfrac{5}{100}}
1,000
Expenditure
Amount
Income
Amount
To Rent
6,600
By Subscriptions
32,500
To Electric charges
3,200
Outstanding subscriptions
750
To Lecturer’s fee
730
for current year (2017)
33,250
To Office expenses
1,480
Advance Subscriptions
(500)
32,750
To Printing and Stationery
1,050
for next year (2018)
To Legal fee
1,870
By Donation
2,500
To Depreciation On:
By Profit from entertainment
7,250
Books
750
Interest
350
Furniture
580
Building
1,000
2,330
To Expenses on nukar drama
1,300
To Loss on sale of old books
250
To Surplus
(Excess of Income over Expenditure)
24,040
42,850
42,850
Opening Balance Sheet:
Balance Sheet of Nari Kalayan Samittee
as on December 31, 2016
Liabilities
Amount
Assets
Amount
Capital Fund
27,270
Building
20,000
as of December 31, 2016
Furniture
3,000
(Balancing Figure)
Books
2,000
Cash in Hand and Cash at Bank
2,270
27,270
27,270
Balance Sheet of Nari Kalayan Samittee
as on December 31, 2017
Liabilities
Amount
Assets
Amount
Capital Fund
27,270
Building
20,000
Life Membership Fees
3,250
Depreciation
(1,000)
19,000
30,520
Furniture
3,000
Surplus
24,040
54,560
Purchases
8,600
Advance Subscription for 2018
500
11,600
Depreciation
(580)
11,020
Books
2,000
Purchases
6,500
8,500
Sales
(1,000)
7,500
Depreciation
(750)
6,750
Cash in Hand
8,040
Cash at Bank
9,500
Outstanding Subscriptions
750
55,060
55,060

8. Following is the Receipt and Payment Account of Indian Sports Club, prepared Income and Expenditure Account, Balance Sheet as on December 31, 2015 December 31, 2017:
Receipt and Payment Account for the year ending December 31, 2017
Expenditure
Amount
Income
Amount
Balance b/d
7,890
Salary
11,000
Subscriptions
52,000
Electric charges
5,500
Life membership fee
2,200
Billiard Table
17,500
Entrance fee
3,200
Office expenses
4,100
Tournament fund
26,000
Printing & Stationery
2,300
Locker Rent
1,250
Tournament expenses
18,500
Sale of old sports equipment
2,500
Repair of ground
2,000
(Costing ₹ 2,200)
Furniture purchased
7,700
Sale of old newspaper
750
Sports equipment
12,000
Legacy
37,500
Cash in hand
12,690
Cash at bank
10,000
Fixed deposit
on 1.10.2017 for 10% p.a.)
30,000
1,33,290
1,33,290
Other Information:
Subscription outstanding was on December 31, 2016 ₹ 1,200 and ₹ 3,200 on December 31, 2017. Locker rent outstanding on December 31, 2017 ₹ 250. Salary outstanding on December 31, 2017 ₹ 1,000.
On January 1, 2017, club has Building ₹ 36,000, furniture ₹ 12,000, Sports equipments ₹ 17,500. Depreciation charged on these items @ 10% (including Purchase).
Working Notes:
Building
36,000
Depreciation on Building @ 10%
{= 36,000 × \dfrac{10}{100}}
3,600
Furniture
12,000
Furniture Purchased
  7,700
19,700
Depreciation on Furniture @ 10%
{= 19,700 × \dfrac{10}{100}}
1,970
Sports Equipment
17,500
Purchases
12,000
Sales
(2,200)
27,300
Depreciation on Sports Equipment @ 10%
{= 27,300 × \dfrac{10}{100}}
2,730
Expenditure
Amount
Income
Amount
To Salary
11,000
By Subscriptions
52,000
Outstanding Salaries
1,000
12,000
Outstanding subscriptions
3,200
To Electric charges
5,500
for the current year (2017)
55,200
To Office expenses
4,100
Oustanding subscriptions
(1,200)
54,000
To Printing and Stationery
2,300
from previous year (2016)
To Repair of ground
2,000
By Entrance fee
3,200
To Depreciation On:
By Locker Rent
1,250
Furniture
1,970
Outstanding Locker Rent
250
1,500
Building
3,600
By Profit on Sports Equipment Sold Out
300
Sports equipments
2,730
8,300
By Sale of Old Newspapers
750
To Surplus
(Excess of Income over Expenditure)
26,300
By Accrued Interest
750
60,500
60,500
Opening Balance Sheet:
Balance Sheet of Indian Sports Club
as on December 31, 2016
Liabilities
Amount
Assets
Amount
Capital Fund
74,590
Outstanding Subscriptions
1,200
(Balancing Figure)
Building
36,000
Furniture
12,000
Sports Equipments
17,500
Cash at Bank
7,890
74,590
74,590
Balance Sheet of Indian Sports Club
as on December 31, 2017
Liabilities
Amount
Assets
Amount
Salary Outstanding
1,000
Outstanding Subscriptions
3,200
Tournament Fund
26,000
Outstanding Locker Rent
250
Tournament Expenses
(18,500)
7,500
Building
36,000
Capital Fund
74,590
Depreciation
(3,600)
32,400
Life Membership Fee
2,200
Furniture
12,000
76,790
Purchases
7,700
Legacy
37,500
19,700
1,14,290
Depreciation
(1,970)
17,730
Surplus
26,300
1,40,590
Sports Equipments
17,500
Purchases
12,000
29,500
Sales
(2,200)
27,300
Depreciation
(2,730)
24,570
Billiard Table
17,500
Cash in Hand
12,690
Cash at Bank
10,000
Fixed Deposit
30,000
Accrued Interest
750
30,750
1,49,090
1,49,090

9. From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account and Balance Sheet for the year ending March 31, 2017.
Expenditure
Amount
Income
Amount
Cash in hand as on 1.4.16
6,800
Salaries
24,000
Subscription
60,200
Traveling Expenses
6,000
Donation
3,000
Stationery
2,300
Sale of furniture
4,000
Rent
16,000
(Book value ₹ 6000)
Repair
700
Entrance fee
800
Books purchased
6,000
Life membership fee
7,000
Building purchased
30,000
Interest on investment
5,000
Cash in hand
1,800
(@ 5% for full year)
as 31.03.2017
86,800
86,800
Additional Information
As on
01.04.2016
As on
31.03.2017
(i) Subscription received in advance
1,000
3,200
(ii) Outstanding subscription
2,000
3,700
(iii) Stock of stationery
1,200
800
(iv) Books
13,500
16,500
(v) Furniture
16,000
8,000
(vi) Outstanding rent
1,000
2,000
Working Notes:
Amount
Investment
Let the investment be x
Interest on investment (@ 5% per annum)
{= x × \dfrac{5}{100}}
= 5,000
Investment x
{= 5,000 × \dfrac{100}{5}}
= 1,00,000
Loss on Furniture
Book value of Sold Furniture
6,000
Selling price of Sold Furniture
4,000
Loss on Sold Furniture
2,000
Depreciation on Furniture
Book Value of furniture in 2016
16,000
Furniture sold
(6,000)
Book value of remaining furniture
10,000
Book value of furniture in 2017
(8,000)
Depreciation on furniture
2,000
Books
Book Value of books in 2016
13,500
Purchases
6,000
Book Value of Remaining Books
19,500
Book value of books in 2017
(16,500)
Depreciation on books
3,000
Expenditure
Amount
Income
Amount
To Loss on Sale of Furniture
2,000
By Subscriptions
60,200
(₹ 6,000 – ₹ 4,000)
Outstanding Subscriptions
(2,000)
To Salaries
24,000
in 2016
58,200
To Travelling expenses
6,000
Outstanding Subscriptions
3,700
To Stationery
2,300
for 2017
61,900
Opening Stock
1,200
Advance Subscriptions
1,000
3,500
in 2016 (for 2017)
62,900
Closing Stock
(800)
2,700
Advance Subscriptions
(3,200)
59,700
To Rent
16,000
in 2017 (for 2018)
Outstanding Rent
(1,000)
By Donation
3,000
for 2016
15,000
By Entrance Fees
800
Outstanding Rent
for 2017
2,000
17,000
By Interest on Investments
5,000
To Repairs
700
To Depreciation On:
Books
3,000
Furniture
2,000
5,000
To Surplus
(Excess of Income over Expenditure)
11,100
68,500
68,500
Opening Balance Sheet:
Balance Sheet of Jan Kalyan Club
as on December 31, 2016
Liabilities
Amount
Assets
Amount
Advance Subscriptions
1,000
Cash in Hand
6,800
Outstanding Rent
1,000
Investment
1,00,000
Capital Fund
1,37,500
Outstanding Subscriptions
2,000
(Balancing Figure)
Stock of Stationery
1,200
Books
13,500
Furniture
16,000
1,39,500
1,39,500
Balance Sheet of Jan Kalyan Club
as on December 31, 2017
Liabilities
Amount
Assets
Amount
Advance Subscriptions
3,200
Outstanding Subscriptions
3,700
Outstanding Rent
2,000
Furniture
16,000
Capital Fund
1,37,500
Sales
(6,000)
Life Membership Fees
7,000
10,000
1,44,500
Depreciation
(2,000)
8,000
Surplus
11,100
1,55,600
Investments
1,00,000
Stock of Stationery
800
Books
13,500
Purchases
6,000
19,500
Depreciation
(3,000)
16,500
Building
30,000
Cash in Hand
1,800
1,60,800
1,60,800

10. Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017
Receipt and Payment Account for the year ending March 31, 2017
Receipts
Amount
Payments
Amount
Opening Cash in hand
2,600
Rent
18,000
Entrance fees
3,200
Wages
7,000
Donation for building
23,000
Billiard table
14,000
Locker rent
1,200
Furniture
10,000
Life membership fee
7,000
Interest
2,000
Profit from entertainment
3,000
Postage
1,000
Subscription
40,000
Salary
24,000
Cash in hand
4,000
80,000
80,000
Prepare Income and Expenditure Account and Balance Sheet with help of following Information:
Subscription outstanding on March 31, 2016 is ₹ 1,200 and ₹ 2,300 on March 31, 2017, opening stock of postage stamps is ₹ 300 and closing stock is ₹ 200, Rent ₹ 1,500 related to 2015 and ₹ 1,500 is still unpaid.
On April 1, 2016 the club owned furniture ₹ 15,000, Furniture valued at ₹ 22,500 on March 31, 2016 March 31, 2017.
On March 31, 2017, the club had a loan of ₹ 20,000 (@ 10% p.a) in 2017 2016.
Working Notes:
Furniture
Furniture owned on April 1, 2016
15,000
Purchases
10,000
25,000
Book Value of Furniture on March 31, 2017
(22,500)
Depreciation
2,500
Expenditure
Amount
Income
Amount
To Rent
18,000
By Entrance Fees
3,200
Outstanding Rent
1,500
By Locker Rent
1,200
for 2017
19,500
By Profit from Entertainment
3,000
Outstanding Rent
(1,500)
18,000
By Subscription
40,000
for 2016
Outstanding Subscriptions
(1,200)
To Wages
7,000
for 2016
38,800
To Depreciation on Furniture
2,500
Outstanding for 2017
2,300
41,100
To Interest
2,000
By Deficit
6,100
To Postage
1,000
(Balancing Figure)
Opening Stock
300
1,300
Closing Stock
(200)
1,100
To Salary
24,000
54,600
54,600
Opening Balance Sheet:
Balance Sheeet of Shankar Sports Club
as on March 31, 2016
Liabilities
Amount
Assets
Amount
Rent Outstanding
1,500
Cash in Hand
2,600
10% Loan
20,000
Outstanding Subscriptions
1,200
Furniture
15,000
Stock of Postage Stamps
300
Capital Fund Deficit
(Balancing Figure)
2,400
21,500
21,500
Balance Sheeet of Shankar Sports Club
as on March 31, 2017
Liabilities
Amount
Assets
Amount
Rent Outstanding
1,500
Subscriptions Outstanding
2,300
10% Loan
20,000
Billiard Table
14,000
Donation for Building
23,000
Furniture
15,000
Capital Fund
(2,400)
Purchases
10,000
Life Membership Fee
7,000
25,000
3,600
Depreciation
(2,500)
22,500
Deficit
(6,100)
Stock of Postage Stamps
200
(Note: Capital Fund Deficit
Cash in Hand
4,000
is shown on the assets side)
Capital Fund (Deficit)
1,500
44,500
44,500



11. Prepare Income and Expenditure Account and Balance Sheet for the year ended March 31, 2016 from the following Receipt and Payment Account and Balance Sheet of culture club:
Receipt and Payment Account
for the year ending March 31, 2016
Receipts
Amount
Payments
Amount
Opening cash balance
12,000
Furniture
4,000
Subscription
Telephone expenses
800
2014-15
2,000
Salary
2015-16
22,000
24,000
2014-15
1,000
Entrance fees
2,800
2015-16
4,000
Locker rent
1,000
Newspapers
700
Life Membership fee
1,200
Sundry expenses
1,000
Government grant
11,000
Defence bonds
18,000
Land
20,000
Closing cash balance
2,500
52,000
52,000
Balance Sheet
for the year ending March 31, 2015
Liabilities
Amount
Assets
Amount
Advance Locker rent
200
Cash in hand
12,000
Subscription received in Advance
1,000
Outstanding subscription
3,000
Outstanding salary
2,000
Building
35,000
Loan
10,000
Capital Fund
36,800
50,000
50,000
Working Notes:
Subscriptions:
Outstanding Subscriptions for 2014-15
3,000
Subscriptions Received for 2014-15 (in 2015-16)
(2,000)
2014-15’s Subscriptions still outstanding
1,000
Salary
Outstanding Salary for 2014-15
2,000
Salary paid in 2015-15 (for 2014-15)
(1,000)
Salary still outstanding for 2014-15
1,000
Expenditure
Amount
Income
Amount
To Telephone Expenses
800
By Subscription
22,000
To Salary
4,000
Advance Subscriptions
1,000
23,000
To Newspapers
700
Received previous year for 2015-16
To Sundry Expenses
1,000
By Entrance Fees
2,800
To Surplus
31,500
By Locker Rent
1,000
(Balancing Figure)
Locker Rent received
200
1,200
in advance 2014-15
By Government Grants
11,000
38,000
38,000
Balance Sheet of Culture Club
as on March 31, 2016
Liabilities
Amount
Assets
Amount
Capital Fund
36,800
Subscriptions still outstanding
1,000
Life Membership Fees
1,200
for 2014-15
35,600
Furniture
4,000
Surplus
31,500
69,500
Defence Bonds
18,000
Salary still outstanding for 2014-15
1,000
Land
20,000
Loan
10,000
Building
35,000
Cash in Hand
2,500
80,500
80,500
12. From the following Receipt and Payment Account prepare final accounts of a Unity Club for the year ended March 31, 2017
Receipt and Payment Accounts for the year ending March 31, 2017
Receipts
Amount
Payments
Amount
Balance b/d
15,000
Furniture
18,000
Sale of Old furniture
4,000
Library books
10,000
(costing ₹ 6,000)
Salaries
72,000
Subscriptions
General Expenses
18,000
2015-16
18,000
Electric charges
12,000
2016-17
60,000
Newspapers
33,800
2017-18
12,000
Postage
3,000
Sale of old newspapers
10,800
Stationery
40,000
Profit from entertainment
44,000
Audit fee
8,000
Rent
84,000
Balance c/d
33,000
2,47,800
2,47,800
Balance Sheet as on March 31, 2017
Liabilities
Amount
Assets
Amount
Outstanding Salary
6,000
Cash
15,000
Capital Fund
6,94,000
Outstanding subscription
18,000
Library Books
30,000
Furniture
37,000
Land and Building
6,00,000
7,00,000
7,00,000
Additional Information:
1.
The Club had 500 members each paying an annual subscription of ₹ 150.
2.
On 31.3.2017 salaries outstanding amounted to ₹ 1,200 and salaries paid included ₹ 6,000 for the year 2015-16.
3.
Provide 5% depreciation on Land and Building.

Working Notes:
Cost of Land and Building
6,00,000
Depreciation on Land and Building @ 5%
=6,00,000 × \dfrac{5}{100}
30,000
Expenditure
Amount
Income
Amount
To Loss on Sale of Old Furniture
(6,000 – 4,000)
2,000
By Subscriptions
(500 × 150)
75,000
To Salaries
72,000
By Sale of Old Newspapers
10,800
Salaries outstanding
1,200
By Profit from Entertainment
44,000
for the current year
73,200
By Rent
84,000
Salaries outstanding
(6,000)
67,200
By Deficit
200
for the previous year
(Balancing Figure)
To General Expenses
18,000
To Electric Charges
12,000
To Newspapers
33,800
To Postage
3,000
To Stationery
40,000
To Audit Fees
8,000
To Depreciation on Land and Building
30,000
2,14,000
2,14,000
Balance Sheet of Unity Club
as on March 31, 2017
Liabilities
Amount
Assets
Amount
Advance Subscriptions
12,000
Outstanding Subscriptions
15,000
for next year
Furniture
37,000
Outstanding Salaries
1,200
Purchases
18,000
Capital Fund
6,94,000
55,000
Deficit
(200)
6,93,800
Sales
(6,000)
49,000
Library Books
30,000
Purchases
10,000
40,000
Land and Building
6,00,000
Depreciation @ 5%
30,000
5,70,000
Cash and Bank
33,000
7,07,000
7,07,000
13. Following is the information in respect of certain items of a Sports Club. You are required to show them in the Income and Expenditure Account and the Balance Sheet.
Details
Amount
Sports Fund as on April 1, 2016
80,000
Sports Fund Investments
80,000
Interest on Sports Fund Investments
8,000
Donations for Sports Fund
30,000
Sports Prizes awarded
16,000
Expenses on Sports Events
7,000
General Fund
2,00,000
General Fund Investments
2,00,000
Interest on General Fund Investments
20,000

Note that only interest on Generic fund should be considered while preparing the Income and Expenditure Account.. Interest on specific funds i.e. Sports Fund in this case, will be considered in the Balance Sheet.

Expenditure
Amount
Income
Amount
By Interest on General Fund Investment
20,000
Balance Sheet of Sports Club
as on March 31, 2017
Liabilities
Amount
Assets
Amount
Sports Fund
80,000
Sports Fund Investments
80,000
Interest on Sports Fund
8,000
General Fund Investments
2,00,000
Investments
88,000
Donations for Sports Fund
30,000
1,18,000
Sports Prizes awarded
(16,000)
1,02,000
Expenses on Sports Events
(7,000)
95,000
General Fund
2,00,000
Note: Scope of the problem is to show the entries in the Balance Sheet. So, balance sheet is not balanced.
14. Receipt and Payment Account of Maitrey Sports Club showed that ₹ 68,500 were received by way of subscriptions for the year ended on March 31, 2017.
The additional information was as under:
1.
Subscription Outstanding as on March 31, 2016 were ₹ 6,500,
2.
Subscription received in advance as on March 31, 2016 were ₹ 4,100,
3.
Subscription Outstanding as on March 31, 2017 were ₹ 5,400,
4.
Subscription received in advance as on March 31, 2017 were ₹ 2,500.

Show how that above information would appear in the final accounts for the year ended on March 31, 2017 of Maitrey Sports Club.
Expenditure
Amount
Income
Amount
By Subscriptions
68,500
Outstanding Subscriptions
for previous year
(6,500)
62,000
Advance Subscriptions received previous year (for current year)
4,100
66,100
Outstanding Subscriptions for current year
5,400
71,500
Advance Subscriptions for next year
(2,500)
6,900
Opening Balance Sheet
Balance Sheet of Maitrey Sports Club
as on March 31, 2016
Liabilities
Amount
Assets
Amount
Subscriptions Received in advance
4,100
Outstanding Subscriptions
6,500
Balance Sheet
as on March 31, 2017
Liabilities
Amount
Assets
Amount
Subscriptions Received in advance
2,500
Outstanding Subscriptions
5,400
Note: As only the subscriptions are given, the information given is incomplete. So, the balance sheet is not balanced.
15. Following is the Receipt and Payment account of Rohatgi Trust :
Liabilities
Amount
Assets
Amount
Cash in hand
14,000
Rent
6,000
Cash at bank
60,000
Salary
12,000
Subscription:
Postage
300
2016
5,000
Electricity charges
6,000
2017
83,000
Purchase of furniture
20,000
2018
3,000
91,000
Books
3,000
Sale of investment
90,000
Defence Bonds
1,50,000
Interest on investment
2,000
Help to needy students
22,000
Sale of furniture
3,200
Cash in hand
10,900
(Book value ₹ 3,000)
Cash at bank
30,000
2,60,200
2,60,200
Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments:
Subscription for 2017, still owing were ₹ 7,000. Interest due on defence bonds was ₹ 7,000, Rent still owing was ₹ 1,000. The Book value of investment sold was ₹ 80,000, ₹ 30,000 of the investment were still in hand. Subscription received in 2017 included ₹ 400 from a life member. The total furniture on January 1, 2017 was worth ₹ 12,000. Salary paid for the year 2018 is ₹ 2,000.
Working Notes:
Particulars
Investments
Book value of Investments sold
80,000
Investments still in hand
30,000
Book value of Investments Before sale
1,10,000
Profit on Sold Investments
Sale value of investments
90,000
Book value of sold investments
80,000
Profit from sale of investments
10,000
Furniture
Sale value of Furniture
3,200
Book value of furniture
3,000
Profit from sale of furniture
200
Expenditure
Amount
Income
Amount
To Rent
6,000
By Subscription
83,000
Outstanding Rent
1,000
7,000
Outstanding Subscriptions
7,000
To Salary
12,000
90,000
Advance Salary for next year (2018)
(2,000)
10,000
Life Membership Fee included in subscriptions
(400)
89,600
To Postage
300
By Profit on Sale of Investment
10,000
To Electric Charges
6,000
(90,000 – 80,000)
To Help to Needy students
22,000
By Interest on Investmetns
2,000
To Surplus
63,500
By Profit on Sale of Furniture
200
(Balancing Figure)
(3,200 – 3,000)
By Interest Accured on Defence Bonds
7,000
1,08,800
1,08,800
Opening Balance Sheet
Balance Sheet of Rastogi Trust
as on March 31, 2016
Liabilities
Amount
Assets
Amount
Capital Fund
2,01,000
Outstanding Subscriptions
5,000
(Balancing Figure)
Investments
(80,000 + 30,000)
1,10,000
Furniture
12,000
Cash in Hand
14,000
Cash at Bank
60,000
2,01,000
2,01,000
Balance Sheet of Rastogi Trust
as on March 31, 2017
Liabilities
Amount
Assets
Amount
Advance Subscriptions
3,000
Outstanding Subscriptions
7,000
Outstanding Rent
1,000
Furniture
12,000
Capital Fund
2,01,000
Purchases
20,000
Surplus
63,500
32,000
2,64,500
Sales
(3,000)
29,000
Life Membership Fees
400
2,64,900
Books
3,000
Defence Bonds
1,50,000
Accrued Interest
on Defence Bonds
7,000
1,57,000
Investments
30,000
Advance Salaries
2,000
Cash in Hand
10,900
Cash at Bank
30,000
2,68,900
2,68,900
16. Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017

Receipt and Payment Account for the year ending December 31, 2017
Receipts
Amount
Payments
Amount
Balance b/d
Charity
11,500
Cash in hand
11,500
Rent and taxes
3,200
Cash at bank
12,600
Salary
6,000
Donation
9,000
Printing
600
Subscription:
42,800
Postage
300
Legacies
18,000
Advertisements
4,500
Interest on investment
4,500
Insurances
2,000
Sale of old newspapers
200
Furniture
21,600
Investment
23,000
Balance c/d:
Cash in hand
9,900
Cash at bank
16,000
98,600
98,600
Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments:
(a)
It was decided to treat one-third of the amount received on account of donation as income.
(b)
Insurance premium was paid in advance for three months.
(c)
Interest on investment ₹ 1,100 accrued was not received.
(d)
Rent ₹ 600: salary ₹ 900 and advertisement expenses ₹ 1,000 outstanding as on December 31, 2018.

Working Notes:
Details
Insurance
Insurance Paid
2,000
Number of months for which Insurance is paid (12 months for current year + 3 months advance)
15
Insurance for current year i.e. 12 months
{= 2,000 × \dfrac{12}{15}}
1,600
Prepaid Insurance
= 2000 – 1,600
400
Donation
Total Donation Received
9,000
Donation Considered as income i.e. one-third
= 9,000 × \dfrac{1}{3}
3,000
Donation Considered as fund
= 9,000 – 3,000
6,000
Expenditure
Amount
Income
Amount
To Charity
11,500
By Donation
3,000
To Rent and Taxes
3,200
By Interest on Investments
4,500
Outstanding Rent
600
3,800
Accrued Interest
1,100
5,600
To Salary
6,000
By Subscription
42,800
Outstanding Salary
900
6,900
By Sale of Old Newspapers
200
To Printing
600
To Postage
300
To Advertisements
4,500
Outstanding Payment
for Advertisements
1,000
5,500
To Insurance
2,000
Prepaid Insurance
(400)
1,600
To Surplus
(Balancing Figure)
21,400
51,600
51,600
Opening Balance Sheet
Balance Sheet of Delhi Charitable Trust
as on December 31, 2016
Liabilities
Amount
Assets
Amount
Capital Fund
24,100
Cash in Hand
11,500
(Balancing Figure)
Cash at Bank
12,600
24,100
24,100
Balance Sheet of Delhi Charitable Trust
as on December 31, 2017
Liabilities
Amount
Assets
Amount
Capital Fund
24,100
Prepaid Insurance
400
Donation
6,000
Investment
23,000
(Capital Fund part)
30,100
Accrued Interest
1,100
24,100
Legacies
18,000
Furniture
21,600
48,100
Cash in Hand
9,900
Surplus
21,400
69,500
Cash at Bank
16,000
Outstanding Rent
600
Outstanding Salary
900
Outstanding Advertisement Expenses
1,000
72,000
72,000
17. From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended March 31, 2017 and the Balance Sheet as on that date.
Receipt and Payment Account for the year ending March 31, 2017
Receipts
Amount
Payments
Amount
Balance b/d
3,500
General Expenses
900
Subscription:
Salary
16,000
2015-16
2,000
Postage
1,300
2016-17
70,000
Electric Charges
7,800
2017-18
3,000
75,000
Furniture
26,500
Sale of old Books
2,000
Books
13,000
(Costing ₹ 3,200)
Newspapers
600
Rent from use of hall
17,000
Meeting Expenses
7,200
Sale of newspapers
400
T.V. set
16,000
Profit from entertainment
7,300
Balance c/d
15,900
1,05,200
1,05,200
Additional Information:
(a)
The club has 100 members each paying an annual subscription of ₹ 900. Subscriptions outstanding on March 31, 2016 were ₹ 3,600.
(b)
On March 31, 2017, salary outstanding amounted to ₹ 1,000, Salary paid included ₹ 1,000 for the year 2016.
(c)
On April 1, 2017 the club owned land and building ₹ 25,000, furniture ₹ 2,600 and books ₹ 6,200.

Working Notes
Subscriptions
Number of members
100
Subscription by each member
900
Total Amount of Subscriptions
= 100 × 900
90,000
Subscriptions received for current year
70,000
Outstanding subscriptions for current year
20,000
Outstanding Subscriptions for the previous year (2015-16)
3,600
Previous Year’s 2015-16 Outstanding Subscriptions paid in the current year (2016-17)
2,000
Previous Year’s (2015-16) Subscriptions Still Outstanding at the end of current year 2016-17
1,600
Books
Book value of sold books
3,200
Sale Price of books
2,000
Loss on sale of books
= 3,200 – 2,000
1,200
Expenditure
Amount
Income
Amount
To General Expenses
900
By Subscriptions Received
70,000
To Salary
16,000
Outstanding subscriptions
20,000
90,000
Outstanding Salary
1,000
By Rent from use of hall
17,000
for current year (2016-17)
17,000
By Sale of newspapers
400
Outstanding Salary
(1,000)
16,000
By Profit from Entertainment
7,300
from previous year (2015-16)
To Postage
1,300
To Electricity Charges
7,800
To Newspapers
600
To Meeting Expenses
7,200
To Loss on Sale of Old Books
1,200
To Surplus
(Balancing Figure)
79,700
1,14,700
1,14,700
Opening Balance Sheet:
Balance Sheet of Club
as on March 31, 2016
Liabilities
Amount
Assets
Amount
Outstanding Salary
1,000
Outstanding Subscriptions
3,600
Capital Fund
39,900
Furniture
2,600
(Balancing Figure)
Books
6,200
Cash and Bank
3,500
Building
25,000
40,900
40,900
Balance Sheet of Club
as on March 31, 2017
Liabilities
Amount
Assets
Amount
Advance Subscriptions
3,000
Outstanding Subscriptions
20,000
Outstanding Salary
1,000
for current year (2016-17)
Capital Fund
39,900
Outstanding Subscriptions
1,600
21,600
Surplus
79,700
1,19,600
from previous year 2015-16
Building
25,000
Furniture
2,600
Purchases
13,000
19,200
Sales
(3,200)
16,000
T.V. Set
16,000
Cash and Bank
15,900
1,23,600
1,23,600
18. Following is the Receipt and Payment Account of Women’s Welfare Club for the year ended December 31, 2017:
Receipt and Payment Account for the year ending December 31, 2017
Receipts
Amount
Payments
Amount
Balance b/d
7,250
Salary
12,500
Subscriptions
81,750
Stationery
1,700
Donations
3,000
Electricity charges
9,550
Grant from Government
15,000
Insurance
7,500
Sale of newspapers
300
Equipments
30,000
Proceeds of charity show
16,500
Petty expenses
500
Interest on investments
7,000
Expenses on charity show
12,900
@ 10% for full year
Newspapers
1,000
Sundries income
400
Lectures fee
16,500
Honorarium to Secretary
12,000
Balance c/d
27,050
1,31,200
1,31,200
Additional Information:
01.01.2017
31.12.2017
Outstanding salaries
1,200
1,800
Insurance prepaid
700
300
Subscription outstanding
3,750
2,500
Subscription received in advance
1,750
1,000
Electricity charges outstanding
1,250
Stock of stationery
2,250
700
Equipments
25,600
50,200
Building
1,20,000
1,14,000
Prepare Income and Expenditure Account for the year ended December 31, 2017 and Balance Sheet as on date.
Working Notes:
Investments
Let the investment be x
Interest on investment @ 10% i.e. {x × \dfrac{10}{100}}
= 7,000
∴ Investment x = 7,000 × \dfrac{100}{10}
70,000
Charity Show
Proceeds of Charity Show
16,500
Expenses on Charity Show
12,900
Profit from charity Show
3,600
Depreciation on Equipments
Book Value at the beginning of the year
25,600
Purchases
30,000
Total Book Value of Equipment
55,600
Book Value at the end of the year
50,200
Depreciation
5,400
Depreciation on Building
Book Value at the beginning of the year
1,20,000
Book Value at the end of the year
1,14,000
Depreciation
6,000
Expenditure
Amount
Income
Amount
To Salary
12,500
By Subscriptions
81,750
Outstanding Salary
1,800
Oustanding Subscriptions
2,500
in the current year (2017)
14,300
in the current year (2017)
84,250
Outstanding Salary
(1,200)
13,100
Outstanding Subscriptions
(3,750)
in the previous year (2016)
in the previous year (2016)
80,500
To Stationery
1,700
Advance Subscriptions
1,750
Opening Stock
2,250
in the previous year
82,250
3,950
(for current year i.e. 2017)
Closing Stock
(700)
3,250
Advance subscriptions
(1,000)
81,250
To Electric Charges
9,550
received in current year
Oustanding
1,250
10,800
(for next year i.e. 2018)
for the current year (2017)
By Donations
3,000
To Insurance
7,500
By Grant from Government
15,000
Prepaid last year
700
By Sale of Newspapers
300
(for current year i.e 2017)
8,200
By Profit from Charity show
3,600
Prepaid in current year
(300)
7,900
By Interest on Investments
7,000
(for next year i.e. 2018)
To Depreciation on Equiptments
5,400
To Petty Expenses
500
To Newspapers
1,000
To Lectures fee
16,500
To Honorarium to Secretary
12,000
To Depreciation on Building
6,000
To Surplus
(Balancing Figure)
34,100
1,10,550
1,10,550
Opening Balance Sheet:
Balance Sheet of Women’s Welfare Club
as on December 31, 2016
Outstanding Salaries
1,200
Insurance Prepaid
700
Advance Subscriptions
1,750
Oustanding Subscriptions
3,750
Capital Fund
2,26,600
Stock of stationery
2,250
(Balancing Figure)
Equipments
25,600
Building
1,20,000
Cash and Bank
7,250
Investments
70,000
2,29,550
2,29,550
Balance Sheet of Women’s Welfare Club
as on December 31, 2017
Liabilities
Amount
Assets
Amount
Oustanding Salaries
1,800
Equipments
25,600
Advance Subscriptions
1,000
Purchases
30,000
Outstanding Electricity Charges
1,250
55,600
Capital Fund
2,26,600
Depreciation
(5,400)
50,200
Surplus
34,100
Insurance Prepaid
300
2,60,700
Outstanding Subscriptions
2,500
Stock of Stationery
700
Building
1,20,000
Depreciation
(6,000)
1,14,000
Cash and Bank
27,050
Investments
70,000
2,64,750
2,64,750
19. As at March 31, 2015 March 31, 2017 the following balances have been extrated from the books of the Indian Chartered Accountants Recreation Club and you are asked to prepare Income and Expenditure Account for the year ended March 31, 2017 and a Balance Sheet as at that date.
Debit Balances
Credit Balances
Stock-in-hand
1170
Subscriptions
97,110
Purchases
24,660
Billiard’s Receipts
7,300
Dining Room
32,370
Sunday Sundry Receipts
410
Rent
10,470
Interest on Fixed Deposit
270
Wages
18,690
Sundry Creditors
5,370
Repairs and Renewals
5,400
Grant from Institute
42,000
Fuel and Light
5,280
Income and Exp. A/c (2016)
1,380
Misc. Expenses
4,050
Cash in Hand
560
Cash at bank
2,760
Fixed Deposit
8,500
Sundry Debtors
2,250
Stationary Stationery
600
Billiard Table
2,070
Fixtures and Fittings
870
Furniture
4,140
Club Premises
30,000
1,53,840
1,53,840
On March 31,2016 stock of Stationary Stationery consisted of ₹ 900 and March 31, 2017 ₹ 60 respectively. Provide depreciations ₹ 60 on fixtures and fittings, ₹ 390 on billiard table and ₹ 560 on furniture.
Expenditure
Amount
Income
Amount
To Stock Expenses
By Subscriptions
97,110
Initial Stock-in-hand
1,170
By Billiards Receipts
7,300
Purchases
24,660
25,830
By Sundry Receipts
410
To Dining Room Exp.
32,370
By Interest
270
To Rent
10,470
on Fixed Deposits
To Wages
18,690
To Repairs and Renewals
5,400
To Fuel and Light
5,280
To Misc. Expenses
4,050
To Stationery
Opening Stock
900
Purchases
600
1,500
Closing Stock
(60)
1,440
To Depreciation On:
Fixtures and Fittings
60
Billiards Table
390
Furniture
560
1,010
To Surplus
(Excess of Income over Expenditure)
550
1,05,090
1,05,090
Balance Sheet of Indian Chartered Accountants Recreation Club
as on March 31, 2017
Liabilities
Amount
Assets
Amount
Sundry Creditors
5,370
Cash in Hand
560
Grant from Institute
42,000
Cash at Bank
2,760
Capital Fund
1,380
Fixed Deposit
8,500
(Income and Expenditure. A/c in 2016)
Sundry Debtors
2,250
Surplus
550
1,930
Billiards Table
2,070
Capital Fund
840
Depreciation
(390)
1,680
(Balancing Figure)
Fixture and Fittings
870
Depreciation
(60)
810
Furniture
4,140
Depreciation
(560)
3,580
Club Premises
30,000
50,140
50,140
Note:In the previous releases of the text book, the problem statement was different. The answers given in the text book are for an earlier version of the problem. Later on, the problem statement is changed but the answer values didn’t change. So, you will notice that the answers that we got here and the answers given in the text book are different.