Not for profit concerns

Q1. Ajanta library showed the following position of their accounting.

Consider the adjustments given and prepare income and expenditure a/c for
the year ended 31/3/2022 and balance sheet as on that date.
Balance sheet as on 31st March, 2021
Liabilities Amount ₹ Assets Amount ₹
Capital fund 345000 Furniture 36250
Expenses due 3500 Books 275500
Investment in securities 25000
cash in hand 4250
cash at bank 7500
348500 348500
Receipts & Payments A/c for the year ended 31st March, 2022
Receipts Amt. Payments Amt.
To Balance b/d By Electricity charges 3490
cash in hand 4250 By Postage 3050
cash at bank 7500 By Books purchased 40000
To Subscriptions 90000 By Payments for 3500
expenses due
To Entrance fees 12500 By Sundry expenses 5250
To Sale of scrap 750 By Investment in 50000
securities
To Hire of lecture hall 9000 By Furniture 14000
To Interest on securities 2000 By Balance c/d
cash in hand 3210
cash at bank 3500
126000 126000
Adjustments:
1 During the current year, furniture was purchased on 1/10/2021.
Depreciate furniture @ 10% p.a.
2 Depreciate books by ₹ 50000.
3 Subscription received during the year includes 7500 for the year
2022-23 and 3750 are outstanding for the current year.
4 Capitalise ½ of the entrance fees.
Q2.Following is the balance sheet as on 1/4/2019 and the receipts and payments A/c for
the year ending 31/3/2020 of Bright College, Pune. Balance sheet as on 1/4/2019

Liabilities Amount Assets Amount

₹ ₹
Capital fund 1318000 Building 1000000
(balancing figure) Furniture 120000
Books 60000
Bank deposits 100000
Tuition fees receivable 10000
Cash at bank 19000
Cash in hand 9000
1318000 1318000
st
Receipts & Payments A/c for the year ended 31 March, 2020
Receipts Amt. Payments Amt.
To Balance b/d By Salaries to teachers 180000
cash in hand 9000 By Salaries to office staff 30000
cash at bank 19000 ByBookspurchasedon1/1/2020 20000
To Tuition fees By Printing and stationery 41000
2018-19 10000
2019-20 170000
To Admissionfees(Revenue) 20000 By Office rent 10000
To Donations 100000 By Repairs to college building 24000
To Interest on bank 5000 By Sports expenses 8600
deposits
To Government 200000 By Annual gathering expenses 14000
Grant(Revenue)
To Fine collected 5200 By Furniture purchased on 80000
1/1/2020
by Balance c/d
cash in hand 2600
cash at bank 128000
538200 538200
Additional information:1. For the current year Tuition fees receivable is
24000.2.Donations are to be capitalised.3.Salaries to teachers is outstanding
12000. 4. Depreciate books @ 20% p.a. and furniture @ 10% p.a. Prepare
income and expenditure a/c for the year ended 31/3/2020 and balance sheet
as on that date.
Q3.Following is the receipts and payments a/c and additional information of Patil
hospital, Pune. Prepare income and expenditure a/c for the year ended 31/3/2016 and
balance sheet as on that date.

Receipts & Payments A/c for the year ended 31st March, 2016

Receipts Amt. Payments Amt.

To Opening cash balance 24000 By Medicines 40000
To Subscription By Honorarium to doctors 300000

2014-15 30000 By Ambulance maintenance 176000

2015-16 380000 By Hospital Equipment’s 120000

purchased

2016-17 60000 470000 By Furniture purchased 100000

To Donation 220000 By Fixed deposit 400000

To life membership fees 100000 By Closing cash balance 278000

To Hospital receipts(revenue) 600000
1414000 1414000

Additional information
1. Outstanding subscription for 2015-16 is 20000.
2. Hospital Equipments and furniture were purchased on 1/10/2015 and
both the assets were to be depreciated by 20% p.a.
3. Life membership fees to be capitalised.
4. Donations represent donations for building fund.
5. Staff salary outstanding for the current year is 30000.
6. On 1/4/2015 hospital had following assets and liabilities: land
1000000, investment 200000, bank loan 800000, and ambulance
410000.
Q 4 Following is the receipts and payments account of Chamber of
Commerce for the year ending 31/3/2022 and some additional information.
Prepare income and expenditure a/c for the year ending 31/3/2022 and
balance sheet as on that date.
Dr. Receipts and payments a/c for the year ending 31/3/2022 Cr.

Receipts Payments Amount

Amount
To Balance b/d 11960 By Printing &stationery 6950
(cash at bank)
To Subscription (including 36500 By Repairs 2100
2500 for 2020-2021)
To Sale of furniture (book 12000 By Rent 8500
value 18000)
To Donations 27000 By Travelling expenses 2000
To Admission fees (revenue) 5050 By Investments 40000
By Insurance 1700
By Books 20000
By Balance c/d (cash at 11260
bank)
92510 92510
Additional information:
1. Particulars
1/4/2021 31/3/2022
Outstanding subscriptions 3000 5000
Furniture 32000 ?
Building fund 145000 ?
Capital fund 151960 ?
Investments 250000 ?

2. Neglect depreciation on the part of furniture sold during the

year. But depreciate the remaining furniture by 1400.
3. Donation is received for building fund.
Q5. Following is the Receipts and Payments A/c of Soham Cricket Club,
Mumbai.
Receipts & Payments A/c for the year ended 31st March, 2017
Receipts Amt. Payments Amt.
To balance b/d 1040 By Salaries 1300
To Subscription By Entertainment 645
Expenses
2015-16 85 By Electricity Charges 234
2016-17 4000 By General Expenses 350
2017-18 103 By Rent & Taxes 120
To Donation 1200 By Investments 3000
To Entertainment 876 By Printing & stationery 241
Receipts
To Interest 81 By Expenses of 2015-16 600
To Entrance Fees 1000 By Fixed Deposits 1000
By Balance c/d 895
8385 8385
Information:
1. Club had 450 members paying an annual subscription of Rs.10 each
2. Rs. 20 is still in arrears towards subscription for the year 2015-16.
3. Carry forward Rs.20 for rent paid in advance.
4. Outstanding salary Rs.200.
5. Land & Building Rs.15000 & Furniture Rs.1150 is standing in the books on
1/4/2016 on which depreciation at 5% and 20% is to be written off
respectively.
6. 50% of the entrance fees & full donation are to be capitalised.
From the above receipts &payments a/c and information prepare income
and expenditure a/c for the year ended 31/3/2017 and balance sheet as on
that date.
Q6 Dr. Akshay Purohit commenced medical practice on 1/4/2021. He gives
you the Receipts and Payments Account for the year ended 31/3/2022 and
the additional information.
Prepare Income and Expenditure a/c for the year ended 31/3/2022 and
Balance Sheet as on that date.
Receipts & Payments A/c for the year ended 31st March, 2022
Receipts Amt. Payments Amt.
To Cash Introduced 30,000 By Furniture 40,000
To Visit fees 40,000 By Honorarium to Doctors 10,000
To Receipts from 80,000 By Equipments 50,000
Dispensary
To Miscellaneous Receipts 1,000 By Purchase of Drugs 10,000
To Interest on 500 By Compounders salary 12,000
Investments
To Receipts from 10,000 By Rent of dispensary 6,000
Operation fees
By Conveyance charges 2,000
By Stationery 600
By operation Expenses 8,000
By lighting 400
By Journals 800
By Telephone expenses 500
By Investments 7,200
By Balance c/d 14,000
1,61,500 1,61,500
Additional information:
1. Receipts in arrears are visit fees ₹ 5,000.
2. Outstanding expenses: Compounders salary ₹ 3,000, stationery ₹ 1,000
and Rent of dispensary ₹ 1,000.
3. 25% amount of conveyance charges are for domestic purpose.
4. Stock of drugs was ₹ 2,000.
5. Furniture and Equipments are to be depreciated at 10% p.a.
 Q7 From the following particulars relating to Akansha Charitable hospital,
Nagpur Prepare Income and Expenditure a/c for the year ended 31/3/2020
and Balance Sheet as on that date.
Receipts & Payments A/c for the year ended 31st March, 2020
Receipts Amt. Payments Amt.
To Balance b/d By Medicines purchased 41,000
cash 8,230 By General expenses 1,050
By Salaries 23500
To Subscription 52,000 By Stationery 2,000
To Donation (general) 17,500 By Expenses on charity show 550
To Interest on Investments 10,000 By Surgery & Dispensary 4,200
expenses
To Proceeds from charity 8,530 By Equipment 10,000
show
By Balance c/d
cash in hand 960
cash at bank 13,000
96,260 96,260
Additional information:
Particulars 1/4/2019 31/3/2020
₹
1 Subscription due 310 350
2 Subscription received in advance 600 150
3 Stock of medicines 8,000 11,000
4 Estimated value of Equipments 15,000 ?
5 Building 40,000 ?
6 Capital fund 1,70,940 ?
7 10% Investments 1,00,000 ?
Provide depreciation on equipment ₹ 1900 and on building ₹ 1500.
Q8 From the following information, Prepare Income and Expenditure a/c for
the year ended 31/3/2022 and Balance Sheet as on that date for Ganesha
Sports Club, Mumbai.
Balance sheet as on 1st April, 2021
Liabilities Amount ₹ Assets Amount ₹
Capital fund 64500 Machinery 69000
Bank overdraft 38000 Outstanding Subscription 8000
Outstanding salaries 4000 Prepaid Insurance Premium 2000
Furniture 15000
Cash in hand 12000
Outstanding locker Rent 500
106500 106500
st
Receipts & Payments A/c for the year ended 31 March, 2022
Receipts Amt. Payments Amt.
To Balance b/d 12000 By Balance b/d(Bank overdraft) 38000
To Subscription 105000 By Salary 17500
ToEntrancefees(capitalised) 5000 By Insurance Premium 11000
To locker Rent 1500 By Billiard expenses 1400
To Donation(capitalised) 800 By Purchase of sports material 3000
To Legacies(capitalised) 4300 By Entertainment Expenses 2200
To Tournament Receipts 6000 By Furniture( purchased on 30000
31/3/2022)
By Tournament Expenses 5000
By Balance c/d
cash in hand 5000
cash at bank 21500
134600 134600
Adjustments:
1. Subscription received includes ₹ 3000 for 2020-21 and outstanding for
2021-22 was ₹ 14000.
2. On 31/3/2022, prepaid insurance premium was ₹ 2500.
3. Depreciate furniture at 20% p.a.
4. Locker rent outstanding for 2021-22 is ₹ 400.
9. Given below is the balance sheet as on 1/4/2021 and Receipts and
payments account for the year ending 31/3/2022 of Deccan sports club.
Balance sheet as on 1st April, 2021
Liabilities Amount ₹ Assets Amount ₹
Capital fund 9,25,000 Play ground 8,00,000
Building fund 5,00,000 Furniture 36,000
Subscription received in 9,000 Stock of sports material 44,000
advance for the year
2021-22
Building fund investments 5,00,000
Cash at bank 20,000
Outstanding Subscription 34,000
1434000 1434000
st
Receipts & Payments A/c for the year ended 31 March, 2022
Receipts Amt. Payments Amt.
To Balance b/d 20,000 By sports material purchased 52,000
Cash at bank
To Subscription 2,01,800 By salaries and wages 87,000
To Admission fees 13,000 By office expenses 1,26,000
To Donations 56,000 By telephone charges 12,400
To sundry receipts 2,700 By Balance c/d 34,100
Cash at bank
To Interest on investments 18,000
in building fund
311500 311500
Adjustments:
1. Stock of sports material in hand on 31/3/2022 was 48,000.
2. Admission fees and Donations are to be capitalised.
3. Subscription received during the year included 34000 for previous year
and 10,000 for the next year. Current year’s subscription 29000 is to be
received.
Prepare Income and Expenditure a/c for the year ended 31/3/2022 and
Balance Sheet as on that date.
10. “Jeevan Jyoti Art Circle” a newly established concern has presented the
following information.
Receipts and payments Account for the year ending 31.03.2018.
Receipts Amt. Payments Amt.
To Admission fees 22000 By Furniture 12000
To Subscriptions 40000 By Stationery 4000
To Donations 18000 By Office rent 2600
By Newspapers & 300
Periodicals
By Telephone Expenses 560
By Investments 23000
By Balance c/d
cash in hand 7540
cash at bank 30000
80000 80000
Adjustments:
1) Subscription Outstanding for the year was ` 5,000
2) Depreciate Furniture @ 10 % p.a.
3) Full amount of Admission Fees and 50 % Donations are to be capitalized.
You are required to prepare income and Expenditure Account for the year
ending 31.03.2018 and Balance Sheet as on that date.
 11.From the following transactions of Receipts and Payments Account of
Petit Gymkhana and the adjustments given, you are required to prepare
Income and Expenditure Account and Balance Sheet as on 31st March
2023.
Receipts and payments Account for the year ending 31.03.2023.
Receipts Amt. Payments Amt.
To Balance b/d 5000 By Salary 6000
Cash in hand
To Subscription By Entertainment Expenses 2480
2021-22 4000
2022-23 18000
2023-24 410 22410
To Donation 6000 By Sundry Expenses 1300
To Receipts from 5400 By Electricity Charges 1200
Entertainment
To Interest 400 By Rent 700
To Entrance fees 6200 By Investment 15000
By Printing and Stationery 800
By Postage 3200
By Expenses for 2021-22 4000
By Fixed deposit 3900
By Balance c/d
cash in hand 6830
45410 45410
Adjustments: 1) There are 500 members paying an annual Subscription of `50
each
2) Outstanding Salary was ` 1,200.
3) The Assets on 01.04.2022 were as follows: Building ` 50,000,
Furniture15,000.
4) Provide depreciation on Building and Furniture at 5 % and 10 %
respectively.
5) 50 % Entrance Fees is to be capitalized.
6) Interest on Investment at 5 % p. a. has accrued for 6 months.
 12.(Account of a Library) Following is the Receipts Payments Account of “Dhananjay
Library , Mumbai” for the year ending 31.03.2020
Receipts and payments Account for the year ending 31.03.2020.

Receipts Amount ` Payments Amount

To Balance b/d 5,000 By Salaries 9,000

To Admission Fees 4,500 By Rent 7,500

To Subscriptions 20,000 By Investments 6,000

To Lecture Hall Hire 4,200 By Stationery 1,350

Charges
To Miscellaneous 250 By Electricity Charges 850
Income
To Interest on 900 By Books 5,000
Investment
By Outstanding Expenses 500
(2018 - 19)

By balance c/d 4,650

34,850 34,850

You are required to prepare an Income and Expenditure Account for the year ended
31.03.2020 and Balance Sheet as on that day.
The following information is also made available to you.
1) On 31.03.2019, the Library had the following Assets also; Books at ` 50,000, Furniture `
6,500, and Machinery of ` 30,000
2) Subscription received in advance amounted to ` 500
3) Outstanding Salaries ` 1300 and for Rent ` 950
4) 50 % of the Admission Fees should be capitalized.

5) Furniture to be depreciated at 10 % p.a.

6) Library Books were purchased on 1st April 2019 charge Depreciation at 10 % p. a.
7) The Investments were purchased on 01.04.2019 and they carry interest at 20 % p.a.
1. (Calculation of stationery consumed during the year)
Balance Sheet as on 01.04.2018 Assets ` Stock of Stationery 400.
Receipts and Payments Account for the year ending 31.03.2019 Stationery
Purchased 6,300.
Adjustments: 1) ` 1,000 Outstanding for Stationery bill.
2) Stock of Stationery as on 31.03.2019 was valued at ` 1,800.
With the above information, calculate the amount of Stationery consumed during
the year.

2. (Presentation of Subscription only)

Balance Sheet as on 01.04.2018
Liabilities: Subscription received in Advance for 2018 -19:20,000.
Assets: Outstanding Subscription
2016 - 17 26,000
2017 - 18 35,000 61,000
Receipts and Payments Account for the year ending 31.03.2019.
Receipts: Subscriptions
2016 - 17 23,000
2017 - 18 30,000
2018 - 19 4, 10,000
2019 - 20 21,000 4, 84,000
Adjustments: Outstanding Subscription for 2018 - 19 is ` 32,000.
With the above information present the item Subscription in Income and
Expenditure Account for the year ended 31.03.2019 Balance Sheet as on the date.

3. Receipts and payments Account for the year ending 31.03.2018.

Receipts: Subscriptions
2016 - 17: 2,000
2017 – 18: 60,000
2018 - 19: 4,500 66,500
Adjustments: Subscription Outstanding for the year 2017 - 18 is ` 6,000.
During previous year Subscription received in advance for 2017 - 18 is ` 2,000.
Outstanding subscription of 2016 - 2017 is ` 2,500.
With the help of above information present the item Subscription in Income and
Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that
date.