COC Non-Profit Organization CA/CMA Santosh Kumar

Final Account of Non-Profit Organisation And Educational institutions

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Question: 1 From the following information relating to Indian Cricket club, prepare Income and Expenditure Account
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for the ending 31 March 2016 and Balance Sheet as at that date. Abstract of Hon. Secretary’s Cash Book for
the year is as follows:
Rs. Rs.
To Member’s Subscription 80,000 By Upkeep of Field and Pavilion 20,000
To Member’s Admission Fee 3,000 By Expenses regarding Tournament 37,000
To Sale of Old Balls, Bats, etc. 500 By Rates and Insurance 2,000
To Hire of Ground 3,000 By Telephone 3,500
To Subscription for Tournament 40,000 By Printing and Stationary 1,000
To Bank Drawn 40,000 By General Charges 2,200
To Donation 1,00,000 By Secretary’s Honorarium 5,000
By Grass Seeds 1,300
By bats, Balls, etc. 27,000
By Bank Lodged 1,67,500
2,66,500 2,66,500
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Assets on 1 April, 2015 Rs.
Cash at Bank 30,000
Stock of Bats, Balls, etc. 15,000
Printing and Stationary 2,000
Subscriptions due 5,000
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Liabilities on 1 April, 2015 Nil
Donation and Surplus on account of tournament should be kept in reserve for a Permanent Pavilion subscriptions due
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at 31 march, 2016 Rs. 7,500. write off 50% on Bats, Balls Account and 25% of Printing and Stationary Account.
Answer: surplus- 32,250, Opening B/S = 52,000 Closing B/S= 1,87,250

Question 2. You are required to calculate the income from subscriptions for the year ending December 31,2016 and
show them in the Income and Expenditure Account and the Balance Sheet of a Club:
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Receipts & payment account for the year ended 21 December 2016
Receipts Amount Payments Amount
To Subscriptions:
For 2015 12,500
2016 75,000
2017 15,00 1,02,500

Additional Information:
(a) Subscription outstanding on December31,2015 15,000
(b) Subscription outstanding on December31,2016 12,500
(c) Subscription Received in Advance on December 31,2015 15,000
[Answer. Rs. 1,00,000]

Question 3.Calculatethe amount of subscriptions to be shown in 1999 in Income & expenditure A/c.
Subscription received in 1999 as: Rs.
1998 5,000
1999 45,000
2000 4,000 Rs. 54,000
Subscriptions outstanding in 1998 Rs. 7,500
Subscriptions outstanding in 1999 Rs. 7,500
Subscriptions Received in Advance in 1998
For 1999 Rs. 6,500
For 2000 Rs 2,000
Life membership subscriptions received in 1999 Rs. 5,000
[Answer. Rs. 56,500]
Question 4. Calculate the amount of Stationery Consumed during the year 2017 from the following data:

Stock of stationery on January 1,2017 2,400

Creditors for stationery on January 1,2017 1,600
Advance paid for stationery carried forward from 2016 160
Amount paid for stationery during the year 2017 8,640
Stock of stationary on December 31,2017 400

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Creditors for stationery on December 31,2017 1,040

Advance paid for stationery on December 31,2017 240
[Answer. Rs. 10,000]
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Question 5.Gavaskar Cricket Club given you the following receipts and Payments Account for the year ended 31 March
2017;
Receipts Rs Payments Rs.
To Balance of Cash on By Salaries and Wages 12,000
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1 April 2016: By Sports Equipment 46,785
At Office 150 By Stationery and Printing 1,220
At Bank 14,200 14,350 By Maintenance of Ground 6,000
To Subscriptions 61,100 By Prizes 1,060
To Admission Fees 350 By Balance of Cash on
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To Interest on Investments @ 9% 3 1 March, 2017:
per annum for full year 9,000 At Office 380
At Bank 17,355 17,735
84,800 84,800
The Following additional information is provided to you:
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On 1 April 2016 On 31 March 2017
1. Subscriptions Due 480 560
2. Subscriptions Received in Advance 80 40
3. Sports Equipment 21,800 29,700
4. Land & Buildings (cost less depreciation) 80,000 76,000
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Prepare Income and expenditure A/c for the year ended 31 March, 2017 and Balance Sheet as at that date:
[Answer:surplus- 7405, opening B/S = 2,16,630, Closing B/s = 2,23,995]
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Question 6.Shanti Library Society showed the following position on 31 December 2015.
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Balance Sheet as at 31 Dec., 2015
Liabilities Rs. Assets Rs
Capital Fund 79,300 Electrical Fittings 15,000
Expenses Due 700 Furniture 5,000
Books 40,000
Investments in Securities 15,000
Cash in Bank 2,500
Cash on Hand 2,500
80,000 80,000
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The Receipt and Payments A/c for the Year ending on 31 December 2016 is given below:
Receipts Rs. Payments Rs.
To Balance b/d By Electric charges 720
Cash at Bank 2,500 By Postage & Stationery 500
Cash on hand 2,500 5,000 By Telephone charges 500
To Entrance fees 3,000 By Books Purchased
To membership subscription 20,000 (on 1-1-16) 6,000
To sale proceeds of old papers 150 By Outstanding expenses paid 700
To hire of lecture Hall 2,000 By Rent A/c 8,800
To Interest on securities 800 By Investment in securities 4,000
By Salaries A/c 6,600
By Balance c/d
Cash at Bank 2,000
Cash on Hand 1,130
30,950 30,950
You are required to prepare an Income & Expenditure Account for the year ending 31-12-16 and Balance Sheet as on
that date after making the following adjustments:
1. Membership subscription included Rs. 1,000 received in advance.
2. Provide for outstanding Rent Rs. 400 and Salaries Rs. 300.
3. Books to be depreciated @ 10% including additions. Electrical fittings and furniture are also to be depreciated
at the same rate.
4. 75% of the entrance fees are to be capitalised.
5. Interest on securities is to be calculated @ 5% p.a. including purchases of investments made on
1-7-2016 for Rs. 4000.[ANS: Deficit = 1,670, closing B/S = 81,580 ]

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Question 7. From the Following particulars relating to Charitable Hospital, prepare (1) receipts and Payment for
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the year ended 31 March, 2016 and (2) Balance Sheet as on 31 March 2016.

Expenditure Rs Income Rs
To Medicines Used 2,99,800 By subscriptions 5,60,000
To Honorarium to Visiting Doctors 1,20,000 By Donations 95,000
To salaries 2,75,000 By interest on Investment @ 11% p.a 1,10,000
To Printing & Stationery 11,000 By Income from Film Show:
To Electricity & Water 4,750 Proceeds 1,14,500
To Rent 60,000 Less: Expenses 7,800 1,06,700
To Depreciation on furniture & Fixtures 21,000
To depreciation on Equipment 32,500
To Surplus i.e. excess of income over
expenditure 47,650
8,71,700 8,71,700
Additional Information's
On 31.3.2015 (Rs.) On 03.03.2016 (Rs.)
1. Subscription due 1,200 1,600
2. Subscriptions received in advance 640 1,000
3. Electricity and Water Bills Unpaid 920 1,150
4. Stock of Medicines 78,200 97,500
5. Estimated value of equipment 1,16,000 1,39,000
6. Furniture and Fixture (cost less depreciation) 2,10,000 1,89,000
7. Land ---- 1,00,000
8. Interest Accrued on Investments in
11%Debentures costing Rs. 10,25,000 (face
value Rs. 10,00,000) 27,500 27,500
9. Cash in Hand 3,400 1,600
10. Cash at Bank 90,000 ?
Ans: capital fund(opening)15,49,740,Subscriptions received 5,59,960,Medicines Purchased3,19,100, Equip Purchased: 55,500

Question: 8 The Lok Kalyan Dispensary had the following Income and Expenditure Accounts the Year ended for
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31 March, 2016
Expenditure Rs. Income Rs.
To Salaries 2,35,000 By Subscriptions 2,50,000
To Surgery and Dispensary 30,000 By Interest 90,000
To Rent and Taxes 5,000 By Donation 40,000
To Insurance 2,000 By Miscellaneous Receipts 3,000
To Office Expenses 8,000
To Depreciation on:
Building 37,500
Furniture 1,200
Instruments 1,000 39,700
To surplus i.e. excess
of income over expenditure 63,300

3,83,000 3,83,000
Other information is as follows:
On 31-3-2015 (Rs) On 3 1-3-2016 (Rs)
Cash in hand and at bank ? 1,87,000
Government securities (face value Rs. 10,00,000) 8,00,000 8,00,000
Subscription in arrear 70,000 1,00,000
Subscriptions received in advance 2,000 6,000
Salaries unpaid 10,000 15,000
Furniture 20,000 19,800
Land & Building 20,00,000 19,62,500
Instruments 35,000 39,000
Surgery expenses due 2,000 3,000
Stock of Medicines 3,000 1,000
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You are required to prepare the Receipts and Payments Account for the year ended 31 March, 2016 and also the
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Balance Sheet as on 31 March, 2016.

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 COC Non-Profit Organization CA/CMA Santosh Kumar
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Working Notes: (a) Balance Sheet as on 31 March, 2015
Liabilities Rs. Assets Rs.
Subscriptions Received in Advance 2,000 Cash in Hand and at Bank 1,08,000
Salaries Unpaid 10,000 Government Securities 8,00,000
Surgery Expenses Due 2,000 Subscriptions Outstanding 70,000
Capital Fund 30,22,000 Furniture 20,000
Balancing Figure) Land and Building 20,00,000
Instruments 35,000
Stock of Medicines 3,000
30,36,000 30,36,000
(b) Receipts on account of Subscriptions: Rs
income on account of subscriptions 2,50,000
add: subscriptions Outstanding on 31-3-15 70,000
subscriptions Received in Advance on 31-3-16 6,000
3,26,000
Less: Subscriptions Outstanding on 31-3-2016 1,00,000
Subscriptions received in Advance on 31-3-15 1,02,000
2,24,000
(d) Calculation of Payment on Account of surgery and Dispensary:
Expenses on surgery and Dispensary for the year 30,000
Add: surgery Expenses Due on 31-3-15 2,000
Stock of medicine on 31-3-2016 1,000
33,000
Less: surgery Expenses Due on 31-3-2016 3,000 6,000
Stock of medicine on 31-3-15 3,000 27,000
(e) Furniture purchased during the year:
Value of Furniture on 31-3-2016 19,800
Add: Depreciation for the year 1,200
21,000
Less: Value of Furniture on 31-3-15 20,000
1,000
(f) Calculation of Instruments Purchased:
value of Instruments on 31-3-2016 39,000
add: Depreciation for the year 1,000
40,000
Less: Value of Instruments on 31-3-2015 35,000
5,000
Question: 9 The Following Income and Expenditure account of H.P Club is given for the year ended on 31 st March. 2017.
Rs. Rs.
To Opening Stock of Provisions(goods) 10,000 By Subscriptions 86,000
To Purchases of Provisions 80,000 By Donations 30,000
To Salaries 60,000 By Entrance Fees 8,000
To Printing and Stationery 5,000 By Sale of Provision 68,000
To general Expenses 3,000 By Closing Stock of Provisions
Depreciation on Equipments 1,000 5,000
To Excess of Income
Over Expenditure 38,000

1,97,000 1,97,000

The Following further information is given:

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Balance Sheet of the Club as on 31 March, 2016
Rs. Rs.
Creditors for Provision 8,000 Equipment (at written down value) 10,000
General Fund 37,000 Stock of provisions 10,000
Cash in hand and at Bank 20,000
Subscriptions Receivable 5,000
45,000 45,000

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Balance Sheet of the Club as on 31 March, 2017
Rs. Rs.
Creditors for Provision 10,000 Equipment (at written down value) 15,000
General Fund 75,000 Stock of provisions 5,000
Cash in hand and at Bank 45,000
Subscriptions Receivable 20,000
85,000 85,000
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Prepare a Receipt and Payment Account of the club for the year ended on 31 March, 2017, from the above information.
Answer:
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Receipt and Payments A/c of the H.P. Club For the ended 31 March, 2017
Rs. Rs.
To Balance b/d By Salaries 60,000
Cash in Hand & at bank 20,000 By Printing & Stationery 5,000
To Subscriptions 86,000 By General Expenses 3,000
Less: Outstanding on 31.3.17 20,000 By Creditors for provision 28,000
66,000 By Equipment:
Add: Outstanding on 31-3-16 5,000 71,000 As on 31-3-2017 15,000
To donations 30,000 Add: depreciation for the year 1,000
To Entrance Fees 8,000 16,000
To Sale of Provision 68,000 Less: Equipment
As on 31-3-16 10,000 6,000
By Balance c/d
Cash in hand and a bank 45,000
1,97,000 1,97,000

Question: 10 From the following Receipts and Payments Account of Excellent Recreation Club for the year ended
31.3.16 and additional information given, prepare an Income and Expenditure Account for the year ended
31.3.16 and Balance Sheet as on 31.3.16:
Receipts Rs. Payments Rs.
Opening Balance : Secretary's Salary 12,000
Cash in hand & at Bank 3,180 Salaries to staff 25,000
Subscription 18,000 Charities 1,000
Sale of old Newspapers 2,500 Printing & Stationery 600
Legacies 4,000 Postage Expenses 120
Interest on Investments 2,000 Rates and Taxes 1,500
Endowment Fund Receipts 20,000 Upkeep of the Land 2,000
Proceeds of Sport & Concerts 4,020 Purchase of Sports Materials 10,000
Advertisement in the year book 5,000 Telephone expenses 3,480
Balance of cash and bank 3,000
Assets and Liabilities as on 31.3.15 and 31.3.16 were as follows:
31.3.15 31.3.16
(Rs.) (Rs.)
Subscription in arrears 2,000 1,000
Subscription received in advance 500 400
Furniture 2,000 1,800
Land 10,000 10,000
Depreciation shall be charged at 10% p.a. under the diminishing value method. Legacies received shall be capitalised.
Investments were made in Securities, the rate of interest being 12% p.a. the date of investments was 1.6.14 and the
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amount of investments was Rs. 20,000. Due date of interest 31 March, every year. Stock of sports materials on 31.3.16
were useless and value NIL. [CA-May-96]
[Answer: Deficit i.e. Excess of Expenditure over Income: 24,880 and Balance Sheet : 36,200]
Question: 11 From the following receipts and Payments A/c of Mumbai Club, Prepare Income and Expenditure A/c
for the year ended 31.12.1996 and its balance Sheet as on that date:
Receipts Rs. Payments Rs.
Cash In Hand 4,000 Salary 2,000
Cash at Bank 10,000 Repair Expenses 500
Donations 5,000 Purchase of Furniture 6,000
Subscriptions 12,000 Misc. Expenses 500
Entrance fees 1,000 Purchase of Investments 6,000

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Interest on Investments 100 Insurance Premium 200

Interest Received from Bank 400 Billiard Table 8,000
Sale of Old Newspaper 150 Paper, Ink. Etc. 150
Sale of Drama tickets 1,050 Drama Expenses 500
Cash in Hand (Closing) 2,650
Cash at Bank (Closing) 7,200
33,700 33,700
Information:
1. Subscriptions in arrear for 1996, Rs. 900 and subscriptions in advance for 1997, Rs. 350.
2. Insurance premium Outstanding Rs. 40.
3. Misc. Expenses Prepaid Rs. 90.
4. 50% of donation is to be capitalised.
5. Entrance fees are to be treated as revenue income.
6. 8% interest has accrued on investment for five months.
7. Billiard Table costing Rs.30,000 was purchased during the last year and Rs. 22,000 were paid for it.
[Nov-97foundation-20 marks]
[ Answer: Surplus i.e. Excess of Income over Expenditure:14,150, Balance Sheet: 53,040]

Question: 12 The following information were obtained from the books of Delhi Club as on 31.3.1998, at the end of
the first year of the Club. You are required to prepare Receipts and Payments Account, Income and
Expenditure Account for the year ended 31.3.1998 and a Balance Sheet as at 31.3.1998 on mercantile basis:
1. Donations received for Building and Library Room Rs. 2,00,000
2. Other revenue income and actual receipts: Revenue Actual
(Income Rs.) Receipts (Rs.)
Entrance Fees 17,000 17,000
Subscription 20,000 19,000
Locker Rent 600 600
Sundry Income 1,600 1,060
Refreshment Account --- 16,000
3. Other Revenue Expenditure and actual Payments:
Revenue Actual
Expenditure Payments
Land (Cost Rs. 10,000) ----- 10,000
Furniture (cost Rs. 1,46,000) ----- 1,30,000
Salaries 5,000 4,800
Maintenance of Playgrounds 2,000 1,000
Rent 8,000 8,000
Refreshment Account ----- 8,000
Donations to the extent of Rs. 25,000 were utilized for the purchase of Library Books. Balance was still unutilized. In
order to keep it safe, 9% govt. Bonds of Rs. 1,60,000 were purchased on 31-3-1998. Remaining amount was put in the
Bank on 31-3-98 under the term deposit. Depreciation at 10% p.a. was to be provided for the whole year on Furniture
and Library Books.
[CA-Nov. 98]20 marks
[Answer: Balance c/d: Overdraft; 1,08,140; Surplus i.e. Excess of Income over Expenditure: 15,100, Balance Sheet
3,40,440]

Question: 13 Mahaveer Sport Club given the following Receipts and Payments account for the year ended March
31, 2017
Receipts Rs Payments Rs
To Opening Cash & Bank Balance 5,200 By Salaries 15,000
To Subscriptions 34,800 By Rent & Taxes 5,400
To donations 10,000 By Electricity Charges 600
To Interest on Investments 1,200 By Sports Goods 2,000
To sundry Receipts 300 By Library Books 10,000
By Newspaper & Periodicals 1,080
By Miscellaneous Expenses. 5,400
By Closing Cash and Bank Balance 12,020
51,500 51,500

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As on 31. 3.16 As on 31. 3.17

Rs. Rs.
Outstanding Expenses:
Salaries 1,000 2,000
Newspaper and Periodicals 400 500
Rent and Taxes 600 1,000
Electricity Charges 800 ---
Library Books 10,000 ---
Sports Goods 8,000 -----
Furniture and Fixtures 10,000 -----
Subscriptions Receivable 5,000 12,000
Investment- Government Securities 50,000 ---
Accrued Interest 600 600
Provide Depreciation on:
Furniture and Fixtures @ 10% p.a
Sports Goods @ 20% p.a.
Library Books @ 10%p.a.

You are required to prepare Club's Opening Balance Sheet as on 1.4.16, Income and Expenditure Account for the year
ended on 31.3.17 and Balance Sheet as on that date. [CA-Nov-99]20 marks

Question: 14 prepare the Income and Expenditure Account and the Balance Sheet from the following information.
Receipts and Payment Account of Zee club, Delhi
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For the year ending on 31 December 2012
Receipts Rs. Payments Rs.
To Balance b/d (cash) 1,025 By Upkeep of fields 220
To Subscriptions: By Salaries 600
2011 40 By Drama Expenses 450
2012 2,050 By Newspapers 150
2013 60 2,150 By Books 100
To Admission Fees 40 By Municipal Taxes 40
To Life Membership Subscription 100 By Charity 350
To Donations (on 1.8.2012) 500 By 12% General Investments 500
To Subscription for Tournament 1,500 (on 1.8.2012)
(on 1.8.2012) By 12% Tournament Fund
To sales of old newspapers 45 Investments (on 1.8.2012) 1,500
To sale of old bats etc. 50 By Tournament Expenses 1,200
To Proceeds of drama tickets 950 By Bats, Balls etc. 700
To Sale of old furniture 60 By Printing and Stationery 100
(costing Rs. 100) By Furniture 250
To Interest on 12% general Invest. 12.50 By Balance c/d (cash) 3,760
To Interest on 12% Tournament
Fund Investments 37.50
To Subs.for Governor's Party 3,450
9,920 9,920

Additional Information
a. There are 500 members each paying an annual subscription of Rs.5. Rs.50 are still in arrear for the year 2011.
b. Municipal taxes amounting to Rs.40 per year have been paid upto 31 March 2013 and Rs.50 are outstanding for
salaries.
c. On 1.1.2012 the club owned building valued at Rs.5,000, Stock of Bats and Balls Rs. 1,500, Printing and Stationery
Rs.200, Cash at Bank Rs.3,000, Books Rs.500 and Furniture Rs,600.
d. Write 50% off Bats and Balls (without considering sale), 25% off printing and stationery.
e. Special subscription for governor's party outstanding Rs.550.
f. Admission fees to be treated as of revenue nature but Life Membership is to be treated as of Capital nature.
[Ans. Surplus Rs. 1,035; Closing Balance Sheet Total Rs. 17,545]
Question: 15 Prepare Income and Expenditure Account and Balance Sheet of Ramdas College Sports Club, Delhi
from the following information:

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(‘000)
Receipts Rs. Payments Rs.
To Balance b/d Cash 150 By Balance b/d (Bank Overdraft) 3,000
Stamps 50 By Insurance (paid up to 30.6.2012) 300
To subscriptions 7,000 By Miscellaneous Expenses 3,875
To Entrance fees 200 By Postage Expenses 200
To Life Membership Subscription 500 By refreshment Room Expenditure 2,100
To General Donations 2,000 By Furniture (Purchased on [1.10.11]) 600
To Cricket Fees 250 By Honorarium to Cricket coach 600
To Refreshment Room Receipts. 3,100 By Sports Equipment (on 1.10.11) 2,200
To Sale of Old periodicals 72 By 10% RBI Tax Free Bonds 10,000
To Interest on Govt. Securities 144 (on 1.1.12) (Pavilion)
(T.D.S. @ 20%) By Balance c/d:
To Donation for club Pavilion 10,000 Cash in Hand 52
(on 1.1.2012) Cash at Bank 514
Stamps 25 591
23,466 23,466

Particulars 1.4.2011 31.3.2012

Rs.'000 Rs. '000
Club Pavilion Fund 5,000 ?
Sports Equipment 4,500 ?
Furniture 3,200 ?
Stock of Foodstuff 120 80
6% Government Security (Face Value Rs.30,00,000) 2,580 ?
Subscription Outstanding 600 250
Subscription in Advance - 300
Outstanding Miscellaneous Expenses 200 250
Accounting policies followed by Ramdas Sports Club, Delhi are as under:
a. The sports equipment and furniture are to be depreciated @25% and 10% p.a. respectively.
b. One-half of the entrance fees and life membership fee are to be treated as income.
(CMA INTER 16 MARKS) [Answer. Surplus Rs.2,872; Closing Balance Sheet Total Rs.22,022]
Question: 16 Prepare Income and Expenditure Account and Balance Sheet of Bhagat Singh College Sports Club. Delhi
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Receipts and Payments Account of Bhagat Singh College Sports Club, Delhi for the year ended on 31 March 2003.
Receipts Rs. Payments Rs.
To Balance b/d Cash 500 By Rent 9,750
Bank 4,000 By miscellaneous Expenses 28,800
Stamps 300 By Postage Expenses 1,200
To Subscription By Furniture 8,000
2001-2002 4,650 By Creditors for Sports Material 12,200
2002-2003 67,200 By cost of prizes (to be awarded) 4,150
2003-2004 2,600 74,450 By Cash Purchase of Sports
To Entrance Fees 8,000 Materials 2,000
To general donations 4,050 By Match Expenses 7,030
To Donations for Prize Fund 2,800 By Balance c/d
To Sale of old Sports Materials 5,200 Cash 545
To Interest on Prize Fund Investments 300 Bank 26,000
To Miscellaneous Receipts 225 Stamps 150
99,825 99,825
Information
Particulars 1.4.2002 31.3.2003
Rs. Rs.
Sports Materials 4,000 5000
Furniture 40,000 ?
5% Prize Fund Investment (Face Value Rs. 12,000) 11,700 ?
Creditors for Sports Materials 1,400 2,950
Subscription in arrears 4,750 ?
Subscription in advance 1,400 ?
Prize Fund 12,000 ?
Rent paid in advance -- 750

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Outstanding rent 750 ?

Outstanding Miscellaneous Expenses 2,280 4,020
Miscellaneous Expenses paid in advance 750 850
Book Value of Sports Materials sold was Rs.4,000. Depreciation on furniture is to be provided @10%. Half of entrance
fees to be capitalised. There are 720 members, each paying an annual subscription of Rs. 100
[Answer, Surplus Rs.19,005 Closing Balance Sheet Total. Rs.91,995]
Question: 17 The following is the Receipts and Payments Account of Apollo Club in respect of the year to 31 March 2003.
Receipts Rs. Payments Rs.
To Balance b/d By Salaries 3,000
Cash in hand 2,000 By Stationery 1,000
To Subscriptions: By Rates and Taxes 300
2001-2002 3,000 By Telephone Charges 1,500
2002-2003 4,000 By 8% Securities at par 5,000
2003-2004 1,000 8,000 By Sundry Expenses 200
To Profit on sports 3,000 By Balance c/d
To Interest on 8% Securities 1,000 Cash in hand 3,000
The following additional facts are ascertained:
a. There are 500 members, each paying an annual subscription of Rs.10; Rs.3,500 being in arrears for 2001-2002
at the beginning of 2002-2003. During 2001-2002, subscriptions were paid in advance by 30 members for
2002-2003.
b. Stock of stationery at 31 March 2002 was Rs.400 and at 31 March 2003, Rs.500.
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c. At 31 March 2003, the rates and taxes were prepaid to the following 31 January. The yearly charge being
Rs.300.
d. A quarter's charge for telephone is outstanding, the amount accrued being Rs.300. The charge for each quarter
is same for both 2001 -2002 and 2002-2003.
e. Sundry Expenses accruing at 31 March 2002 were Rs.50 and at 31 March 2003 Rs.60.
f. At 31 March 2002 Building stood in the books at Rs.30,000 and it is required to write off depreciation at 10%
p.a.
g. Face Value of 8% Securities at 31 March 2002 was Rs. 15,000 which was purchased at that date for Rs. 10,000.
Additional Securities worth Rs.5,000 are purchased at par on 31 March 2003.
You are required to prepare:
i.) An Income and Expenditure Account for the year ended 31 March 2003, and
ii.) A Balance Sheet at that date.
[Ans. Surplus Rs.590; Closing Balance Sheet Total Rs. 52,150]
Question: 18 The following is the Receipts and Payments Account of Modern Club for the year ending on 31st March
2013.
Receipts Rs. Payments Rs.
Cash in hand 150 Honorarium of Secretary &Treasurer 4,800
Bal. as per Bank Pass Book 8,230 8,380 Rates and Taxes 1,260
Subscriptions 10,710 Printing and Stationery 470
Receipts from fees 2,400 Other Miscellaneous Expenses 1,530
Net proceeds of variety Entertainment 4,270 Ground man’s wage 840
Bank interest 230 Expenditure on fetes 2,390
Bar takings 7,450 Payments for bar Purchases 5,770
Cash Overspent 20 Repairs 320
New Car (less sale proceeds of old
car Rs. 3,000) 12,600
Balance as per pass Book 3,480
33,460 33,460

You are given the following additional information: 1.4.2012 31.3.2013

Subscription due 1,200 980

Unpresented cheques being payment on printing 90 30
Club premises at cost 29,000 ---
Depreciation on club premises 18,800 ---
Car at cost 12,190 ---
Depreciation on car 10,290 ----
Value of bar stock 710 870
Amount due for bar purchases 590 430

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Cash overspent represents amount of honorarium to the treasurer not drawn due to shortage of fund. But the total
salary payable to him for the year was already included in 4,800. Depreciation is to be provided @ 5% p.a. on the w. d. v
of the premises and @ 15% p.a. on car for the whole year.
You are required to adjust bank balance according to cash book and prepare:
(i.) An Income and Expenditure Account of the Club for the year ended 31 March 2013.
(ii.) A Balance Sheet as on 31 March 2013 (ICWA—INTER) (CA- PE2 NOV 2004(20 MARKS)(MODIFIED)
[Answer. Surplus Rs.6,090 ; Closing Bal. Sheet Total Rs.28,250]
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Question: 19 Following is the summary of bank transactions of club for the year ending 31 March 2013
Receipts Rs. Payments Rs.
To Petty cash in hand 150 By Rent 600
To Balance as per Pass Book 2,000 By Entertainment 800
To Subscriptions 2,500 By Advertisement (for 2011-2012 200
To Entertainment 1,900 Rs.50)
To Legacy (to be capitalized) 800 By Capital Expenditure 2,000
To Donation for Books 500 By Upkeep of Grounds 300
To General Donation 500 By Bank Charges 30
By Salary 1,500
By Petty Expenses 80
By Balance as per Pass Book 2,770
By Petty Cash in Hand 70
8,350 8,350
Information:
1.4.2012 31.3.2013
Rs. Rs.
I.) Unpresented cheque being payment for rent 100 50
II.) Interest on fixed deposit of Rs. 10,000 not entered in the
pass book. ----- 600
III.) Entry in respect of bank charges was not passed through
the cash book. --- 30
IV.) A member deposited subscription for 2013-2014
Direct into bank, not passed through the cash book ---- 20
V.) Cheques deposited for subscription but not yet cleared
By the bank 800 600
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Prepare Income and expenditure Account for the year ending 31 March 2013 and Balance Sheet as on that date.
[Ans: Surplus. Rs. 1870; Closing Balance Sheet Total Rs. 15,990]

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Question: 20 The Lok Kalyan Dispensary had the following:

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Income and Expenditure Account for the year ending on 31 March 2012
Expenditure Rs. Income Rs.
Salaries 23,500 Subscriptions 25,000
Surgery and Dispensary 3,000 Interest 9,000
Rent and Taxes 500 Donations 4,000
Insurance 200 Miscellaneous Receipts 300
Office Expenses 800
Depreciation:
Building 3,750
Furniture 120
Instruments 100 3,970
Surplus 6,330
38,300 38,300
Information 31.03.2011 31.3.2012
Rs. Rs.
Cash in hand and at bank ? 18,700
4.5% Tax free Government Securities
(Face Value Rs.2,00,000) 1,80,000 1,80,000
Subscription outstanding 7,000 10,000
Subscription received in advance 200 600
Salaries unpaid 1,000 1,500
Furniture 2,000 1,980
Land and Buildings 1,00,000 96,250
Instruments 3,500 3,900
Surgery Expenses due 200 300
Stock of medicines 300 100
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Prepare Receipts and Payments Accounts of the year ending on 31 March 2012
( Ans; Opening cash and bank balance Rs 10,800)
Question: 21 From the following Receipts and Payments Account of a Modern (India) Club and from the supplied
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information, prepare income and Expenditure Account for the year ended 31 March 2013 and Sheet as on that date:
Receipts Rs. Payments Rs.
To Balance b/d 7,000 By Tournament Expenses 1,100
To Donation for Building 8,000 By Furniture 2,000
To General Donations 200 By Curtains 800
To Legacies 6,000 By Crockery 400
To Sale of old furniture 75 By Sports Materials 1,200
(costing Rs.80) By Salaries 1,300
To Endowment Fund Receipts 10,000 By Honorarium 2,600
(to be capitalized) By Charities 8,000
To Sale of Newspapers 400 By Advertisements 250
To sale of Sports Materials 80 By Rent and Taxes 1,400
To Rent Received from use of hall 1,500 By Advance against Construction of Building 5,000
To advertisement in the year book 400 By Cost of Entertainment 1,450
To proceeds of Concerts 1,200 By Payment to Creditors of last year 400
To Subscriptions: By Electric Installation Expenses 3,000
2011-2012 600 By Library Books 800
2012-2013 14,000 By Newspapers 1,300
2013-2014 800 15,400 By Postage 700
To Tournament Fund 1,500 By Bar Expenses including Purchase 1,600
By 7% investments Purchased on 1.10.12 10,000
By Balance c/d 8,455
51,755 51,755
Information :
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a. Balance on 31 March 2013; Sports Material Rs. 100, Bar Stock Rs. 120, Postage Rs. 20.
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b. Subscription outstanding on 31 March 2013 was Rs. 70.
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c. Salary outstanding on 31 March 2013 Rs. 50
d. Salary paid included Rs. 80 paid for 2011-2012 and Rs. 10 for 2013-2014.
e. Investments included investments out of Building Donations Rs. 8,000.
[Ans: Deficit Rs. 975; Opening Capital fund Rs. 7200, Total of Closing Bal. Sheet Rs. 31,755

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Question: 22. From the following Trial Balance of the Gayatri Education Society as on 31 March 2017, prepare an
Income and Expenditure Account and a Balance Sheet.
Dr. (Rs.) Cr. (Rs.)
Furniture and Fittings 12,500
Additions to Furniture during the year 3,200
Library Books 17,500
Additions to Library during the year 4,300
Buildings 2,75,000
General Investments 1,50,000
Reserve Fund 15,000
Sundry Debtors and Creditors 5,000 14,500
Entrance Fees 15,200
Examination Fees 2,400
Subscriptions Received 20,000
Certificate Fees 500
Hire of Society’s Hall 6,500
Interest realized on Investment 5,500
Sundry Receipts 600
Staff salaries 10,200
Printing and Stationery and Advertising 1,000
Taxes and Insurance 800
Examination Expenses 600
Subscription of Periodicals 1,200
Prize Trust Fund 16,000
Prizes Trust Investment 15,800
Prize Trust Income 650
Prize Awarded 450
Prize Fund Bank Balance 275
Donations received (to be capitalized) 18,000
General Expenses 375
Capital Fund 3,89,150
Cash at Bank 5,500
Cash at office 300
5,04,000 5,04,000
The following further information is supplied to enable you to make the necessary adjustments:
Rs.
Subscriptions to be received 4,500
Subscriptions received in advance 500
Interest on General Investment accrued 450
Staff Salaries outstanding 1,800
Taxes and Insurance paid in advance 500
Provide depreciation at the following rates (including the additions):
On Library Books @ 15%
On Furniture and Fittings @ 5%
On Building @ 1% p.a.
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The market value of General Investments on 31 March 2017 was Rs. 1,30,000, but you are not required to bring down
the book value to this level. Ignore Income Tax.
[Ans. Surplus-Rs.32,870; Total of Closing Bal. Sheet Rs.4,88,020.] (CMA INTER 16 MARKS)

Question: 23 A political association prepared its accounts on 31st of December every year. Following information is
available for the year 2017:
a. They started the year with Rs. 20,000 cash and bank balance and ended with a cash and bank balance of Rs. 9,650.
b. They received subscription amounting to Rs. 8,350 of which Rs. 250 represented arrears of 2016, Rs. 7,600 for
current year and Rs. 500 received in advance for the year 2018.
c. They received Rs. 5,200 donation to Capital Fund and Rs. 8,500 to Election Fund. Balance of Election Fund on 1-1-
2017 amounted to Rs. 150 and election expenses paid during the year were Rs. 7,200.
d. They held Rs. 10,000 investments on 1-1-2017 and interest received on investment during 2017 amounted to Rs.
1,400.

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e. Office space was purchased during the year at a cost of Rs. 30,000 out of which Rs. 20,000 was to be treated as
loan and the balance was paid in cash.
f. Office furniture was valued at Rs. 1,500 on 1-1-2017 and Rs. 1,700 was paid for additions during the year.
g. At the end of the year, furniture was valued at Rs. 2,500. Cost of literature published and distributed amounted to
Rs. 750 and Rs. 1,200 was collected on distribution of literature.
h. Other payments during the year 2017 were as follows :
I. Salaries: Rs. 10,500 (out of which Rs. 500 related to the year 2018)
II. Rent: Rs. 1,700 (Out of which Rs. 500 related to the year 2016)
III. Meeting and Propaganda Rs. 1,650 (Rs. 300 paid for arrangement of meetings to be held in the year 2018)
IV. Stationery Rs. 1500

Prepare:1.Receipt and Payment Account for the year ended 31-12-2017;

2. Income and Expenditure Account for the year ended 31-12-2017;
3. Balance Sheet as at 1-1-2017; and
4. Balance Sheet as at 31 -12-2017.
Answer:
Dr. Receipt and Payment Account for the year ending December 31, 2017 Cr.
Receipt Amount Payment Amount
To Balance b/d 20,000 By Building (payment for
To Subscription Received 8,350 Purchase of office space) 10,000
To Interest Received 1,400 By Furniture Purchased 1,700
To Sale of Literature 1,200 By Salaries Paid 10,500
To Donation to Capital Fund 5,200 By Rent Paid 1,700
To Donation to Election By Meeting and
Fund 8,500 Propaganda Expenses Paid 1,650
By Stationery Purchased 1,500
By Cost of Literature Paid 750
By Election Expenses 7,200
By Balance c/d 9650
44,650 44,650

Income and Expenditure Account for the year ending December 31, 2017 Cr.
Expenditure Amount Income Amount
To Salaries 10,000 By Subscription 7,600
To Rent 1,200 By Interest on Investments 1,400
To Stationery Consumed 1,500 By Sale of Literature 1,200
To Meeting & Propaganda 1,350 Less Cost of Literature 750 450
By Excess of Expenditure Over
To Depreciation on Office Income 5,300
Furniture:
Balance on 1-1-2017 1,500
Add Purchased 1,700
3,200
Less Closing Balance 2,500 700
14,750 14,750

Balance Sheet as at January 1, 2017

Liabilities Amount Assets Amount
Rent Outstanding 500 Cash 20,000
Election Fund 150 Subscription Outstanding 250
Capital Fund (Bal. figure) 31,100 Investments 10,000
Furniture 1,500
31,750 31,731

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Balance Sheet as at December 31, 2017

Liabilities Amount Assets Amount
Subscription Received in Cash 9,650
Advance 500 Advance Salary 500
Loan for Building 20,000 Advance for Meetings 300
Election Fund on 1-1-2017 150 Investments 10,000
Add Donation 8,500 Furniture on 1-1-2017 1,500
8,650 Add: Purchased 1,700
Less Expenses 7,200 1,450 3,200
Less Depreciation 700
Capital Fund on 1-1-2017 31,100 2,500
5,200 Building.
Add Donation 30,000
36,300
Less Deficit 5,300 31,000
52,950 52,950

Question: 24 Following is the receipts and payment Account of Roshnara club for the year ending December 31, 2001:
Balance b/d By salaries 15,000
Cash 20,000 By electricity Bills 20,000
Bank 50,000 By foodstuffs for restaurant 40,000
To subscription 2000 10,000 By telephone bills 25,000
2001 80,000 By 18% investments 78,000
2002 8,000 (31-3-2001)
To donation to sports fund 20,000 By sport expenses 40,000
To sale of furniture (book value Rs.5,000) 8,000 By subscription for periodicals 10,000
To sale of old periodicals, newspapers etc. 2,000 By balance c/d
To sale of foodstuffs 80,000 Cash 17,000
To rent of ground for Marriages 10,000 Bank 43,000
2,88,000 2,88,000
Additional Information:
(a) During 2001, the club had 90 members, each paying an annual subscription of Rs.1,000. Out of twelve members,
who had not paid annual subscription during 2000, ten members cleared their arrears in 2001 and the arrears of
subscription of remaining two members who left the club on 1-1-2001 were treated as irrecoverable.
(b) During 2001 Rs.2500 was deposited with Mahanagar Telephone Nigam Limited for adjustment of telephone bills.
On 31-12-2001 following statement was received from MTNL office:

Amount deposited 25,000

Interest on deposit 2,000
27,000
Less Telephone rent and bills for 2001 15,000
Balance of deposit on 31-12-2001 12,000
(c) Advance payment of subscription for periodicals magazines, newspapers etc., amounted to Rs.2000 and Rs.4000 at
the end of 2000 and 2001 respectively.
(d) Stock of foodstuffs for restaurant run by the club amounted to Rs.12,000 and Ras.15,000 at the end of 2000 and
2001 respectively.
(e) On 1-1-201 other balances were as follow:
Furniture 80,000
Building 5,00,000
Sports fund 10,000
(f) Depreciate furniture and building @20%
Prepare Income and Expenditure Account and Balance sheet as 31-12-2001
Answer: Balance sheet as at December 31, 2000
Liabilities Amount Assets Amount
Sports fund 10,000 Cash 20,000
Capital fund Bank 50,000
(balancing figure) 6,66,000 Advance subscription for periodicals 2,000
Subscription outstanding 12,000
Stock of foodstuffs 12,000
Furniture 80,000
Building 5,00,000
6,76,000 6,76,000

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Income and Expenditure Account for the year ending December 31, 2001
To Salaries 15,000 By Subscription for 2001 80,000
To Electricity Expenses 20,000 Add Outstanding for 2001 10,000 90,000
To Foodstuff Purchased 40,000 By Sale of Old Periodicals 2,000
Add Opening Stock 12,000 By Interest on Deposit with MTNL 2,000
52,000 By Profit on Sale of furniture 3,000
Less Closing Stock 15,000 37,000 (Rs.8,000 - Rs.5,000)
To Telephone Expenses 15,000 By Sale of Foodstuff 80,000
To Sports Expenses 40,000 By Rent of Ground for Marriages 10,000
Less Sports Fund on 1-1-2001 10,000 By Excess of Expenditure Over Income 35,000
30,000
Less Donation 20,000 10,000
To Subscription for 10,000
Periodicals
Add Advance on 1-1-2001 2,000
12,000
Less Advance on 31-12-2001 4,000 8,000
To Depreciation on Furniture 15,000
To Depreciation on Building 1,00,000
To Subscription for 2000 Written off 2,000
2,22,000 2,22,000
Balance Sheet as at December 31, 2001
Liabilities Amount Assets Amount
Subscription Received in Advance 8,000 Cash 17,000
Sports Fund on 1-1-2001 10,000 Bank 43,000
Add Donation 20,000 Advance Subscription for Periodicals 4,000
30,000 Subscription Outstanding 10,000
Less Sports Expenses 40,000 Stock of Foodstuffs 15,000
10,000 Investments 78,000
Transferred to Income Deposit with MTNL 12,000
& Expenditure A/c 10,000 — Furniture 80,000
Less Sold 5,000
Capital Fund on 6,66,000

Less Deficit35,000 75,000

6,31,000 Less Depreciation 15,0005, 60,000
Building 00,000

Less Depreciation 1,00,000 4,00,000

6,39,000 6,39,000

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Question:25 The following is the Income and Expenditure Account of Delhi Club for the year ended 31 March,2001 :
Income and Expenditure Account for the year ended 31st March, 2001
To Salaries 19,500 By Subscription 68,000
To Rent 4,500 By Donation 5,000
To Printing 750
To Insurance 500
To Audit Fees 750
To Games & Sports 3,500
To Subscriptions written off 350
To Misc. Expenses 14,500
To Loss on Sale of furniture 2,500
To Depreciation :
Sports Equipment 6,000
Furniture 3,100
To Excess of Income over expenditure 17,0507
3,000 73,000

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Additional Information:
31-3-2000 31-3-2001
Rs. Rs.
Subscription in arrears 2,600 3,700
Advance Subscriptions 1,000 1,500
Outstanding expenses:
Rent 500 800
Salaries 1,200 350
Audit Fees 500 750
Sports Equipment less depreciation 25,000 24,000
Furniture less depreciation 30,000 27,900
Prepaid Insurance — 150
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Book value of furniture sold is Rs. 7,000. Entrance fees capitalised Rs. 4,000. On 1 April, 2000, there was no cash in
hand but Bank Overdraft for Rs. 15,000. On 31st March, 2001, Cash in hand amounted to Rs. 850 and the rest was Bank
balance. Prepare the Receipts and Payments Account of the Club for the year ended 31st March, 2001.
[ICWA—Adapted]
Answer:
Receipts and Payments Account for the year ended 31-3-2001

To Subscription A/c 67,050 By Balance b/d:

Bank 15,000
To Donation A/c 5,000 By Salary 19,500
Add Outstanding last year 1,200
Less Outstanding this year 350 20,350
To Entrance Fees A/c 4,000 By Rent 4,500
Add Outstanding last year 500
Less Outstanding this year 800 4,200
By Printing 750
To Furniture A/c (Sale of furniture) 4,500 By Insurance 500
(7,000-4,500) Add Prepaid this year 150 650
By Audit Fees 750
Add Outstanding last year 500
Less Outstanding this year 750 500
By Games & Sports 3,500
By Miscellaneous Expenses 14,500
By Sports Equipment 5,000
(Purchased)
By Furniture (Purchased) 8,000
By Balance c/d
Cash 850
Bank (balancing figure) 7,250
80,550 80,550

Question 26: From the following information, prepare Balance Sheet as at December 31, 2001 :
Dr. Income and Expenditure Account for the year ending December 31, 2001 Cr.
To Salaries 15,000 By Subscriptions 40,000
To Audit Fees 2,000 By Sale of Foodstuff 20,000
To Purchase of Foodstuffs 15,000 By Rent 5,000
Less Closing Stock of Foodstuffs 3,000 12,000
To Insurance Premium 1,000
To Depreciation on Fixed Assets 3,000
To Excess of Income over Expenditure 32,0006
5,000 65,000

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Dr. Receipts and Payment Account for the year ending December 31, 2001 Cr.
To Balance b/d 5,000 By Salaries 10,000
To Subscription 2001 35,000 By Audit Fees for 2000 1,000
2002 6000 By Purchase of Foodstuffs 15,000
To Rent Received 4,000 By Insurance Premium 2,000
To Sale of Foodstuffs 20,000 By Fixed Assets 20,000
By 12% Fixed Deposit (31-12-2001) 10,000
By Balance c/d 12,000
70,000 70,000
On 31-12-2000, following balances appeared in the books of Delhi Club :
Building—Rs. 50,000 ; Furniture—Rs. 10,000.
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Question:27. Following is the Income and Expenditure Account of Victoria Club for the year ending 31 March ,2006:
Expenditure Amount Income Amount
To dep. On equipment 1200
To Salaries & Wages 19,000 By Subscription 30,000
To Misc. Expenses By Entrance fees received 1,000
( including Insurance) 2,000 By Annual Sports Income
To Audit fees 1,000 Receipts 6,000
To Chief Executive ‘ Less: Expenses 3,000 3,000
Honorarium 4,000
To Printing and Stationary 1,800
To Annual day
Celebration Exp. 6,000
Less – Donation 4,000 2,000
To Interest on Bank Loan 600
To Excess of Income over
Expenditure 2,400
34,000 34,000
Additional Information :
31.3.05 31.03.06
(Rs.) (Rs)
(i) Subscription outstanding 2,400 3,000
(ii) Subscription received in advance 1,800 1,080
(iii) Salaries outstanding 1,600 1,800
(iv) Sports equipment (after deducting depreciation) 10,400 10,800
(v) Prepaid Insurance - 240
(vi) Cash in Hand ? 6,400
(i) The Club owned a Sports’ ground of Rs. 40,000
(ii) The Club took a loan of Rs. 8,000 from a bank during the year 2004 – 05, which was not paid in 2005 – 06.
(iii) Audit fee of 2005 – 06 was outstanding, but an Audit fee of Rs. 800 for 2004 – 05 was paid in 2005 – 06.
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Prepare Receipts and payments Account for the year ending 31 March,2006 and a Balance Sheet on that date.
Answer: Opening balance of cash Rs. 5560. (CA-Inter2006 – May)

Question.28. Following is the Receipts and Payments Account of M/s Tiptop Club for the year ended 31st March. 2006:
Receipts Rs. Payment Rs.
To Cash in hand on 9,000 By Payment for cosmetics 15,000
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1 April ,2005 By Honorarium to Beautician 8,000
To Subscription 45,000 By Salaries 18,000
To Donation 4,500 By Sunday expenses 1,000
To Interest on Investments 3,000
At 6% for the year BY Rent for building 12,000
To Fashion show 50,500 By Equipments purchased 13, 000
Proceeds By Fashion show expenses 34,000
By Cash in hand on 11,000
st
31 March , 2006
Total 1,12,000 Total 1,12,000

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Additional information:
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On 1 April , On31st March,
2005 2006

(i) Subscription due 500 2,000

(ii) Subscription received in advance 1,500 1,000
(iii) Stock of cosmetics 10,000 7,000
(iv) Amount due to cosmetics suppliers 8,000 11,000
(v) Rent paid in advance 1,000 1,500
(vi) Salary outstanding 1,500 2,000
(vii) Value of Equipments 21,500 29,000
(viii) Value of Furniture and Fixtures 40,000 36,000
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You are required to prepare Income and Expenditure Account for the year ended 31 March ,2006 and Balance
Sheet as on date of M/s Tip top Club. Show all working. (CA-PCC 2006 – Nov [16 Marks)
Hints :
1. Calculation of subscription :
Subscription received 45,000
Less : Due (Last year) (500)
Less : Due ( Current year) 2,000
Add : Received in advance( Last year ) 1,500
Less : Received in advance ( Current year) (1,000)
Subscription of the year 47,000
2. Calculation of Purchase of Cosmetics :
Cosmetic A/c
Particulars Rs. Particulars Rs.
To Cash 15,000 By Bal . b/d 8,000
To Balance C/d 11,000 By Purchase (18,000)
26,000 26,000

3. Calculation of Consumption of Cosmetics :

Opening Stock 10,000
Add: Purchase 18000
Less: Closing stock (7,000)
21,000
4. Calculation of Salaries:
Salary Paid 18,000
Less: Outstanding Salary (Last year) (1,500)
Add: Outstanding Salary (Current year) 2,000
18,500
5. Calculation of Rent :
Rent Paid 12,000
Add: Paid in Advance (Last year) 1,000
Less: Paid in Advance (Current year) (1,500)
11,500
6. Calculation of Operating Capital :
Balance Sheet ( as on 31.3. 06)
Particulars Rs. Particulars Rs.
Capital 1,21,000 Subscription due 500
Subscription received in advance 1,500 Stock of Cosmetic 10,000
Due to Cosmetic Supplier 8,000 Rent paid in advance 1,000
Salary Outstanding 1 ,500 Investment 50,000
Equipment 2,500
Furniture and fixture 40,000
Cash 9,000
1,32,000 1,32,000

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Question 29: Following is the Receipts and Payments Account of Nanoo Club for the year ended 31 March, 2009:
Receipts Rs. Payments Rs.
Opening Balance: Salaries 1,20,000
Cash 10,000 Creditors 15,20,000
Bank 3,850 Printing and stationery 70,000
Subscription received 2,02,750 Postage 40,000
Entrance donation 1,00,000 Telephone and fax 52,000
Interest received 58,000 Repairs and maintenance 48,000
Sale of fixed assets 8,000 Glass and table lined 12,000
Miscellaneous income 9,000 Crockery and cutlery 14,000
Receipts at coffee room 10,70,000 Garden upkeep 8,000
Wines and spirits 5,10,000 Membership fees 4,000
Swimming pool 80,000 Insurance 5,000
Tennis court 1,02,000 Electricity 28,000
Closing balance:
Cash 8,000
Bank 2,24,600
21,53,600 21,53,600
Following additional information is provided to you:
(i) Assets and liabilities as on 1.4.2008 were as follows:
Fixed assets (Net) 5,00,000
Stock 3,80,000
Investment in 12% government securities 5,00,000
Outstanding subscription 12,000
Gratuity fund 1,50,000
Prepaid insurance 1,000
Sundry creditors 1,12,000
Subscription received in advance 15,000
Entrance donation received pending membership 1,00,000

(ii) Subscription received in advance as on 31.3.09 was Rs. 18,000.

(iii) Outstanding subscription as on 31.3.09 was Rs. 7,000.
(iv) Outstanding expenses as on 31.3.09 are:
Salaries : Rs. 8,000
Electricity : Rs. 15,000
(v) 50% of the entrance donation was to be capitalised. There was no pending membership as on 31.3.09.
(vi) The cost of assets sold as on 1.4.08 was Rs. 10,000.
(vii) Depreciation was provided @ 10% p.a. on fixed assets on written down value basis,
(viii) A sum of Rs. 20,000 received in October, 2008 as entrance donation from an applicant was to be refunded,
as he has not fulfilled the requisite membership qualification. The refund was made on 3.6.09.
(ix) Purchases made during the year 2008-09 amounted to Rs. 1500,000.
(x) The value of closing stock as on 31.3.09 was Rs. 2,10,000.
(xi) The Club as a matter of policy charges off to Income and Expenditure account, all purchases made on
account of crockery, cutlery, glass and linen in the year of purchase.
You are required to prepare:
(i) Income and Expenditure account for the year ended 31st March, 2009.
(ii) Balance Sheet as on 31st March, 2009.
(CA-PCC- MAY 2009)20 MARKS
Answer:
Income and Expenditure Account of Nanoo club
For the year ended 31st March, 2009
Expenditure Amount Income Amount
To Salaries (W.N.8) 1,28,000 By Subscriptions (W.N.2) 1,94,750
To Printing and stationery. 70,000 By Entrance donation (W.N.3) 90,000
To Postage 40,000 By Interest (W.N.4) 60,000
To Telephone & Fax 52,000 By Miscellaneous income 9,000
To Repairs and maintenance 48,000 By Profit from operations (W.N.6) 92.000
To Glass and table linen 12,000 By Excess of expenditure over income
To Crockery and cutlery 14,000 transferred to capital fund (deficit) 30,250
To Garden upkeep 8,000

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To Membership fees 4,000

To Insurance (W.N.5) 6,000
To Electricity charges (W.N.8) 43,000
To Loss on sale of assets 2,000
(10,000-8,000)
To Depreciation (W.N.9) 49,000
4,76,000 4,76,000
st
Balance sheet of Nanoo Club As on 31 March, 2009
Liabilities Amount Assets Amount
Capital fund (W.N. 10). 10,89,600 Fixed assets (W.N.9) 4,41,000
Gratuity fund 1,50,000 Stock 2,10,000
Sundry creditors (W.N.7) 92,000 Investments in 12% Government securities 5,00.000
Subscription received in advance 18,000 Subscription outstanding 7,000
Entrance donation refundable 20,000 Interest accrued (W.N.4) 2,000
Outstanding salary 8,000 Bank 2,24,600
Outstanding electricity charges 15,000 Cash 8.000
13,92,600 13,92,600
Working Notes:
(1) Opening Balance Sheet as on 1" April, 2008
Liabilities Amount Assets Amount
Capital funds (Bal. Fig.) 10,29,850 Fixed assets 5,00,000
Sundry creditors 1,12,000 Stock 3,80,000
Subscription received in advance 15,000 Investment in 12% Government securities 5,00,000
Entrance donation received in advance Subscription outstanding 12,000
(pending membership) 1,00,000 Prepaid insurance 1,000
Gratuity fund 1,50,000 Cash 10,000
Bank 3,850
14,06,850 14,06,850
2. Subscription
Particulars Amount
Subscription received during the year 2,02,750
Add: Outstanding subscription on 31.3.2009 7.000
Add: Received in advance as on 1.4.2008 15,000
2,24,750
Less: Outstanding subscription as on 1.4.2008 (12,000)
Less: Received in advance as on 31.3.2009 (18,000)
1,94,750
3. Entrance donation
Particulars Amount
Entrance Donation received during the year 1,00,000
Add: Received in Advance as on 1.4.2008 1,00,000
2,00,000
Less: Refundable to Ineligible Member 20,000
1,80,000
Less: 50% Capitalized 90,000
90,000
4. Interest Received
Particulars Amount
Interest on Rs. 5,00,000 @ 12% p.a. 60,000
Less: Interest received during the year 58,000
Interest accrued as on 31.3.2009 2,000
Interest credited to Income and Expenditure A/c 60,000
5. Insurance
Particulars Amount
Insurance paid during the year 5,000
Add: Prepaid insurance as on 1.4.2006 1,000
6,000

6. Profit from Operations

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Particulars Amount
Cost of Goods sold:
Opening Stock as on 1.4.2008 3,80,000
Add: Purchases 15,00,000
18,80,000
Less: Closing Stock 2,10,000
Cost of Goods Sold (A) 16,70,000
Receipts from operations
Receipts from Coffee Room 10,70,000
Receipts from Wines & Sprits 5,10,000
Receipts from Swimming Pool 80,000
Receipts from Tennis Court 1,02,000
Total of Receipts (B) 17,62,000
Profit from operations (B-A) 92,000
7. Sundry Creditors
Particulars Amount
Opening Balance as on 1.4.2008 1,12,000
Add: Purchases made during the year 15,00,000
16,12,000
Less: Payment made during the year 15,20,000
Closing Balance as on 31.3.2009 92,000

(8) (a) Salary

Salary paid as on 31.3.2009 1,20,000
Add: Outstanding Salary as on 31.3.2009 8,000 1,28,000
(b) Electricity charges paid 28,000
Add: Outstanding Electricity charges as on 31.3.2009 15,000 43,000

(9) Fixed Assets

Fixed Assets as per Trial Balance 5,00,000
Less: W.D.V. of Assets sold 10,000
4, 90,000
Less: Depreciation @ 10% on Rs. 4,90,000 49,000
Fixed Assets as on 31.3.2009 4,41,000

(10) Capital fund

Capital fund as on 31.3.2008 10, 29,850
Add: Entrance donation capitalized 90,000
11, 19,850
Less: Deficit 30,250
10,89,600
Question 30:
On the basis of the following information’s, prepare Income and Expenditure Account for the year ended 31st March,
2010:
Receipts and Payments Account for the year ended 31st March, 2010
Receipts Rs. Payments Rs.
To Cash in hand (opening) 1,300 By Salaries 2,58,000
To Cash at Bank (opening) 3,850 By Rent 71,500
To Subscriptions 4,94,700 By Printing & Stationery 3,870
To Interest on 8% Govt. Bonds 4,000 By Conveyance 10,600
To Bank Interest 160 By Scooter purchased 50,000
By 8% Govt. Bonds 1, 00,000
By Cash in hand (closing) 840
By Cash at Bank (closing) 9,200
5,04,010 5,04.010
(i) Salaries paid include Rs. 6,000 paid in advance for April, 2010. Monthly salaries paid were Rs. 21,000.
(ii) Outstanding rent on 31st March, 2009 and 31st March, 2010 amounted to Rs.5,500 and Rs. 6,000 respectively,
(iii) Stock of printing and stationery material on 31st March, 2009 was Rs. 340; it was Rs.365 on 31st March, 2010.
(iv) Scooter was purchased on 1st October, 2009. Depreciation @ 20% per annum is to be provided on it.
(v) Investments were made on 1st April, 2009.

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(vi) Subscriptions due but not received on 31st March, 2009 and 31" March, 2010 totalled Rs. 14,000 and Rs. 12,800
respectively. On 31 March, 2010 subscriptions amounting to Rs. 700 had been received in advance for April,
2010.
(CA-IPCC- MAY 2010)8 MARKS
st
Answer: Income and expenditure Account for the year ended 31 march, 2010
Expenditure Amount Income Amount
To Salaries (W.N. 1) 2,52,000 Subscription (W.N.6) 4,92,800
To Rent(W.N.2) 72,000 Interest on 8% Government bonds
To Printing and stationery (W.N.3) 3,845 (W.N.5) 8,000
To Conveyance 10,600 Bank interest 160
To Depreciation on Scooter (W.N.4) 5,000
To Surplus i.e. excess of income
over expenditure 1,57,515
5,00,960 5,00,960

Working Notes:
1. Salaries paid 2,58,000
Less .Salary paid in advance for April, 2010 6,000
Salaries for the year 2,52,000
2. Rent paid 71,500
Add: Outstanding rent as on 31.3.2010 6,000
77,500
Less: Outstanding rent as on 31.3.2009 5,500
Rent for the year 2009-2010 72,000
3. Printing and stationery 3,870
Add: Stock as on 31.3.2009 340
4,210
Less : Stock as on 31.3.2010 365
Printing and stationery consumed during the year 2009-2010 3,845
4. Depreciation on scooter 5,000

5. Interest on Government bonds received 4,000

Add: Interest due but not received as on 31.3.2010 4,000
Interest income for the year 2009-2010 8,000
6. Subscription received 4,94,700
Add: Accrued subscription as on 31.3.2010 12,800
5,07,500
Less .Accrued subscription as on 31.3.2009 14,000
Unearned subscription for April, 2010 700 (14,700)
Income for the year 2009-2010 4,92,800

Question: 31
The Young Trust runs a Charitable Hospital and a Dispensary. The following information is available for the year ended
31st March, 2009 from the books of accounts:
Dr. Cr.
Rs. Rs.
Capital Fund 9,00,000
Donations received during the year 6,00,000
Recovery of the Rent 2,75,000
Fees received from patients 3,00,000
Recovery of Food Supplies 1,40,000
Surgical Equipments 4,55,000
Building & Operation Theatres 3,20,000
Consumption in the Hospital of:
Medicines 1,20,000
Food Stuff 90,000
Chemicals 30,000
Closing Stock of Hospital

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Medicines 20,000
Food Stuff 4,000
Chemicals 1,000
Sales of Medicines (Dispensary) 3,10,000
Opening Stock of Medicines (Dispensary) 55,000
Purchase of Medicines (Dispensary) 3,00,000
Salaries:
Administrative Staff 30,000
Doctors/Nurses 1,50,000
Assistant at the Dispensary 15,000
Electricity & Power Charges:
Hospital 1,05,000
Dispensary 2,000
Furniture & Equipments 80,000
Ambulance 30,000
Postage & Telephone Expenses less recovery 26,000
Subscription to Medical Journals 21,000
Ambulance Maintenance Charges less recovery 800
Consumption of Bed Sheets 90,000
Fixed Deposits made on 01-04-2008 for three years at interest
@11%p.a. 5,00,000
Cash & Bank Balances 41,300
Sundry Debtors (Dispensary) 60,500
Sundry Creditors (Dispensary) 41,000
Remuneration to Trustees, Trust Office Expenses etc. 21,000
Additional Information:
a. The dispensary supplied medicines to the hospital worth Rs. 60,000, for which no adjustment was made in the
books.
b. The closing stock of the medicines was Rs. 40,000 at the dispensary.
c. The stock of medicines on 31st March, 2009 at the hospital included Rs. 4,000 worth of medicines belonging to
the patients, which has not been considered while arriving at the figure of consumption of medicines.
d. The donations were received towards Corpus of the Trust.
e. On 15th August, 2008, surgical equipments were donated having market value of Rs. 40,000.
f. The hospital is to receive the grant of 25% of the amount spent on treatment of the poor patients from the Red
Cross Society. Such expenditure was Rs. 50,000.
g. Out of the fees recovered from the patients, 10% is to be given to the Specialist retained by the Hospital.
h. Depreciation on the assets on the closing balances :
Surgical Equipments @ 20%
Building @ 5%
Furniture & Equipments @ 10%
Ambulance @ 30%
You are required to prepare:
I. Income and Expenditure Account of the Hospital, Dispensary and Trust,
II. Statement of Affairs of the Trust for the year ended 31st March, 2009.
(CA-IPCC- NOV 2010)16 MARKS
Answer: Income and expenditure Account of Dispensary
st
(for the year ended 31 march, 2009)
Particulars Amount Particulars Amount
To Opening stock of medicines 55,000 By Sales of medicine 3,10,000
To Purchase of medicines 3,00,000 By Supply of medicines to hospital 60,000
To Salaries to assistants 15,000 By Closing stock of medicines 40,000
To Electricity & power charges 2,000
To Surplus transferred to trust income &
expenditure account (Bal.Fig.) 38,000
4,10,000 4,10,000
Income & Expenditure Account of Hospital
st
(For the year ended 31 March, 2009)
Particulars Amount Particulars Amount
To Consumption of: By Fees received from patients 3,00,000
Medicines (W.N.1) 1,84,000 By Recovery for rent 1,40,000

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Food stuff 90,000 By Recovery of food supplies 2,75,000

Chemicals 30,000 3,04,000 By Ambulance maintenance charges less
To Salaries: recovery 800
Admn. staff 30,000 By Grant receivable from Red Cross Society
Doctors & nurses 1.50,000 1,80,000 (25% of 50.000) 12,500
To Electricity & power charges 1,05,000 By Deficit transferred to trust income &
To Consumption of bed sheets 90,000 expenditure account 1,33,700
To Subscription to medical journals 21,000
To Retainership of specialists outstanding
(W.N.2) 30,000
To Depreciation on:
Surgical equipments 99,000
Building 16,000
Furniture & fixtures 8,000
Ambulance 9,000 1,32,000
8,62,000 8,62,000

Income & Expenditure Account of the Young Trust

(For the year ended 31st March, 2009)
Particulars Amount Particulars Amount
To Deficit from hospital 1,33,700 By Surplus from dispensary 38,000
To Postage & telephone expenses less recovery 26,000 By Interest accrued on fixed deposits 55,000
To Remuneration to trustees, trust office By Deficit (Excess of expenditure over income) 87,700
expenses etc. 21,000
1,80,700 1,80,000
Statement of Affairs of Young Trust
(As on 31st March, 2009)
Liabilities Rs. Assets Rs.
Capital fund: Building 3,20,000
Opening balance 9,00,000 Less: Depreciation 16,000 3,04,000
Add: Donations: Surgical equipment 4,55,000
Cash 6,00,000 Add: Donation 40,000
Surgical equipment 40,000 4,95,000
15,40,000 Less: Depreciation 99,000 3,96,000
Less: Deficit 87,700 14,52,300 Furniture 80,000
Sundry creditors(dispensary) 41,000 Less: Depreciation 8,000 72,000
Outstanding retainership to Ambulance 30,000
specialist (W.N.2) 30,000 Less: Depreciation 9,000 21,000
Stock:
Medicines:
Dispensary . 40,000
Hospital 16,000
Food stuff Hospital (20,000 -
4,000) 4,000
Chemicals 1,000 61,000
Sundry debtors (Dispensary) 60,500
Grant receivable from Red Cross
Society 12,500
fixed deposits 5,00,000
Interest accrued 55,000
Cash & bank balance 41,300
15,23,300 15,23,300

Working Notes :
1. Consumption of medicines in hospital:
Medicines 1,20,000
Supplies received from dispensary 60,000
Medicines in stock belonging to patients 4,000
Total 1,84,000
2. Calculation of fee given to specialist:

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10% of Rs. 3, 00,000 = Rs. 30,000

Note: It is assumed that surgical equipment donated on 15th August 2008 was not included in the closing balance of
surgical equipments as on 31st March, 2009

Question: 32: The following is the Receipt and Payment Account of Park View Club in respect of the year ended 31st
March 2011.
Receipts Amount Payment Amount
To Balance b/d 1,02,500 By Salaries 2,08,000
To subscriptions: By Stationery 40,000
2008-09 4,500 By Rent 60,000
2009-10 2,11,000 By Telephone Exp. 10,000
2010-11 7,500 2,23,000 By Investment 1,25,000
To profit on sports meet 1,55,000 By Sundry Expenses 92,500
To Income from investments 1,00,000 By Balance c/d 45,000
5,80,500 5,80,500
Additional information:
1. There are 450 members each paying an annual subscription of ? 500. On 1SI April, 2010, outstanding
subscription was Rs. 5,000.
2. There was an outstanding telephone bill for Rs. 3,500 on 31st March, 2011.
3. Outstanding sundry expenses as on 31s1 March, 2010 totalled Rs. 7,000.
4. Stock of stationery:
On 31st March, 2010 Rs. 5,000
On 31st March, 2011 Rs. 9,000
5. On 31st March, 2010 building stood in the books at Rs. 10, 00,000 and it was subject to depreciation @ 5% per
annum.
6. Investment on 31st March, 2010 stood at Rs. 20, 00,000.
7. On 31st March, 2011, income accrued on the investments purchased during the year amounted to Rs. 3,750.
Prepare an Income and Expenditure Account for the year ended 31st March, 2011 and the Balance Sheet as at that
date.
(CA-IPCC- MAY 2011)16 MARKS
Answer:
Income and Expenditure A/c
Expenditure Amount Income Amount
To Salaries 2,08,000 By Subscriptions (W.N.2) 2,25,000
To Stationery consumed (W.N.3) 36,000 By Profit on sports meet 1,55,000
To Rent 60,000 By Income on investments 1,00,000
To Telephone expenses 10,000 Add: Income accrued 3,750 1,03,750
Add: Outstanding on 31.311 3,500 13,500
To Sundry expenses 92,500
Less: Outstanding on 31.3.10 (7,000) 85,500
To Depreciation of building 50,000
To Surplus (excess of income over
expenditure) 30,750
4,83,750 4,83,750

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Balance Sheet as at 31st March 2011

Liabilities Amount Assets Amount
Capital fund (W.N. 1) 31,05,500 Outstanding subscriptions 14,500
Add: Surplus 30,750 31,36,250 Investment
Subscriptions received in advance 7,500 (20,00,000 + 1,25,000) 21,25,000
Outstanding telephone bills 3,500 Add: Interest accrued on
investments 3,750 21,28,750
Building 10,00,000
Less: Depreciation (50,000) 9,50,000
Stock of stationery 9,000
Cash balance 45,000
31,47,250 31,47,250

Working Notes:
(1) Balance Sheet as at 31st March 2010
Liabilities Amount Assets Amount
Outstanding sundry expenses 7,000 Building 10,00,000
Capital fund (Bal.fig) 31,05,500 Investments 20,00,000
Stock of stationery 5,000
Cash balance 1,02,500
Outstanding subscriptions 5,000
31,12,500 31,12,500

(2) Calculation of subscriptions accrued during the year subscription A/c

Particulars Amount Particulars Amount
To Outstanding Subscriptions By Cash A/c 2,23,000
(as on 1.4.10) 5,000 By Outstanding subscriptions (as on 31.3.11)
To Income & Expenditure A/c 2,25,000 (Bal. fig) 14,500
To Subscriptions received in advance for 2011-12 7,500
2,37,500 2,37,500

(3) Calculation of Stationery consumed during the year.

Rs.
Stock of stationery as on 31 March, 2010 5,000
Add: Purchased during the year 2010-11 40,000
45,000
Less: Stock of stationery as on 31st March, 2011 (9,000)
Stationery consumed 36,000

Question 33:Bear Bar Club was registered in a city and the accountant prepared the following Receipts and Payments
Account for the year ended March 31, 2011 and showed a deficit of Rs. 14,520.
Receipts Amount Payments Amount
Subscriptions 62,130 Premises 30,000
Fair receipts 7,200 Honorarium to Secretary 12,000
Variety show receipts (net) 12,810 Rent 2,400
Interest 690 Rate & Taxes 3,780
Bar Collection 22,350 Printing & Stationary 1,410
Excess Cash spent 1,000 Sundry Expenses 5,350
Deficit 14,520 Wages 2,520
Fair Expenses 7,170
Bar purchases payments 17,310
Repair 960
New car (less proceeds of old car Rs. 9,000) 37,800
1,20,700 1,20,700

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The following additional information are:

01.04.2010 31.03.2011
Cash in hand 450 .........
Bank balances as per pass book 24,690 10,440
Cheque issued not presented for sundry expenses 270 90
Subscriptions due 3,600 2,940
Premises at cost 87,000 1,17,000
Accumulated depreciation on premises 56,400 ...........
Car at cost 36,570 46,800
Accumulated depreciation on car 30,870 ...........
Bar stock 2,130 2,610
Creditors for the bar purchases 1,770 1,290
Cash excess spent represent honorarium to secretary not withdrawn due to cash deficit.
His annual honorarium is Rs. 12,000.
Depreciation on premises and car is to be provided at 5% and 20% on written down value method.
You are required to prepare the correct Receipts and Payments Account, Income and Expenditure Account and Balance
Sheet on March 31, 2011.
(CA-IPCC- Nov 2011)16 MARKS

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