NCERT Solution for Class 12 Accountancy Chapter 1 - Accounting for Non-for-Profit Organisation | Bzziii

1. From the following particulars taken from the Cash Book of a health club, prepare a Receipts and Payments Account.

	(Rs)
Opening balance:
cash in hand	5,000
cash at bank	25,000
subscription	1,65,000
Donation	35,000
Investment Purchased	80,000
Rent paid	20,000
General Expenses	21,500
Postage and Stationary	2,000
Courier charges	1,000
Sundry Expenses	2,500
Closing cash in hand	12,000

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2. The Recipt and Payment Account of Harimohan charitable institution is given:

 Recipt and Payment Account
for the year ending March 31,2015

Receipts	Amount	Payments	Amount
Opening balance:		Furniture	3,000
cash in hand	22,000	Investment	55,000
cash at bank	8,800	Advanced for building	20,000
Donation	32,000	Charities	60,000
subscription	50,200	Salaries	10,400
Endowment fund	60,000	Rent and Taxes	4,000
Legacies	24,000	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
		Balance c/d:
		cash in hand	32,000
		cash at bank	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) It was decided to treat 50%.of the amount received on account of Legacies and Donations as Income. 

(ii) Liabilities to be provided for are: Rent Rs. 800; Salaries Rs. 1,200; advertisement Rs. 200. 

(iii) Rs. 2,000 due for interest on Investment was not actually received

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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
Travelling 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

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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:

Particulars	Rs.
Sports Fund as on 1.4.2005	35,000
Sports Fund Investments	35,000
Interest on Sports Fund	4,000
Donations for Sports Fund	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

Give reasons for your answers.

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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 31.3.2013 and its Balance Sheet as on 31.3.2013:

	Rs
(a) Donation received during the year for the construction of a permanent Pavilion	12,25,000
Expenditure incurred up to 31.3.2013 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

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6. From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2017.

Receipt and Payment Account 
for the year ending March 31,2017

Receipts		Amount	Payment	Amount
Balance b/d			General Expenses	3,200
Cash in hand		4,000	Newspaper	1,850
Cash at Bank		15,500	Electricity	3,000
Subscription			Fixed deposit with bank (on 31.06.2017)	18,000
2016	1,200		Books	7,000
2017	26,500		Salary	3,600
2018	500	28,200	Rent	300
Sale of old newspapers		1,250	Postage charges	6,500
Govt. grant		12,000	Furniture charges	300
Sale of old furniture (book value Rs 5000)		37,000	Furniture (purchased)	10,500
Interest received on FD		450	Balance b/d
			Cash in hand	3,000
			Cash at Bank	8,200
		65,150		65,150

Information:

(i)    Subscription outstanding as on 31.12.2016 Rs 2,000 and on December 31, 2017 Rs 1,500.

(ii)   On December 31, 2017 Salary outstanding Rs 600, and one month Rent paid in advance.

(iii)  On Jan. 01, 2016 organisation owned Furniture Rs 12,000, Books Rs 5,000.

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7. The following is the account of cash transaction of the nari kalayan samittee for the year ended December 31,2017:

Receipts	Amount Rs	Payments	Amount Rs
Balance from last year	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 (books value Rs 1,000)	750	Legal fee	1,870
Interest	350	Books	6,500
		Furniture purchased	8,600
		Expenses on Nukar Drama	1,300
		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 Rs 750, but subscription include Rs 500 for the year 2007.
(b)	In the beginning of the year the Sangh owned building Rs 20,000 and furniture Rs 3,000 and Books Rs 2,000.
(c)	Provide depreciation on furniture @ 5% (including purchase), books @ 10% and building @ 5%

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8.  Following is the Receipt and Payment Account of Indian Sports Club, prepared Income and Expenditure Account, Balance Sheet as on December 31, 2017:

Receipt and Payment Account
 for the year ending December 31, 2017

Receipts	Amount (Rs)	Payments	Amount (Rs)
Balance b/d	7,890	Salary	11,000
Subscriptions	52,000	Electric charges	5,500
Life member ship fee	2,200	Billiard Table	17,500
Entrance fee	3,200	Office expenses	4,100
Tournament fund	26,000	Printing and Stationery	2,300
Locker Rent	1,250	Tournament expenses	18,500
Sale of old sports goods (Costing Rs 2,200)	2,500	Repair of ground	2,000
Sale of Old Newspaper	750	Furniture purchased	7,700
Legacy	37,500	Sports equipments	12,000
		Cash in Hand	12,690
		Cash at Bank	10,000
		Fixed Deposit (on 1.10.06 for 10% p.a)	30,000
	1,33,290		1,33,290

Other Information:

Subscription outstanding was on December 31, 2005 Rs 1,200 and Rs 3,200 on December 31, 2006. Locker rent outstanding on December 31, 2006 Rs 250. Salary outstanding on December 31, 2006 Rs 1,000.

On January 1, 2006, club has Building Rs 36,000, furniture Rs 12,000, Sports equipments Rs 17,500. Depreciation charged on these items @ 10% (including Purchase).

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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, 2013.

Receipt and Payment Account 

for the year ending March 31, 2017

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
Cash in hand as on 1.4.12	6,800	Salaries	24,000
Subscription	60,200	Travelling Expenses	6,000
Donation	3,000	Stationery	2,300
Sale of furniture (Book value Rs 6000)	4,000	Rent	16,000
Entrance fee	800	Repair	700
Life membership fee	7,000	Books purchased	6,000
Interest on investment (@ 5% for full year)	5,000	Building purchased	30,000
		Cash in hand as 31.3.2013	1,800
	86,800		86,800

Additional Information:

	As on 1.04.2012	As on 31.03.2013
(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

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10. Receipt and Payment Account of Shankar Sports Club given below, for the year ended December 31, 2017.

 

        Receipt and Payment Account 

For the year ending December 31,2017 

Receipt	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 with the help of the following information:

Subscription outstanding on 31st Dec 2007 is Rs. 1,200 and Rs. 2,300 on 
31.12.2006, Opening stock of postage stamps is Rs 200. rent Rs. 1,500 related to 2005 and Rs. 1,500 is still unpaid. On Jan 1, 2006, the club owned furniture
Rs 15000.  Furniture valued at Rs. 22,500 on 31.12. 07. The club took a loan of Rs. 20,000@10% p.a. in 2017.

11. Prepare Income and Expenditure Account and Balance Sheet for the year ended December 31, 2006 from the following Receipt and Payment Account and Balance Sheet of culture club:

Receipt and Payment Account

for the year ending march 31,2017

Receipts		Amount (Rs)	Payments	Amount (Rs)
Opening cash balance		12,000	Furniture	4,000
Subscription			Telephone expenses	800
2011-2012	2,000		Salary
2012-2013	22,000	24,000	2011-2012	1,000
Entrance fees		2,800	2012-2013	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, 2012

Liabilities	Amount	Assets	Amount
Advance locker rent	200	Cash in hand	12,000
Subscription Received in Advance	1,000	Outstanding Expenses	3,000
Outstanding salary	2,000	Building	35,000
Loan	10,000
Capital fund	36,800
	50,000		50,000

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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

Receipt	Amount (Rs.)	Payment	Amount (Rs.)
Balance b/d	15,000	Furniture	18,000
Sale of Old furniture (costing Rs 6,000)	4,000	Library books	10,000
Subscriptions: 2015–16 18,000 2016-17 60,000 2017-18 12,000	90,000	Salaries	72,000
Sale of old newspapers	10,800	General expenses	18,000
Profit from entertainment	44,000	Electric charges	12,000
Rent	84,000	Newspapers	33,800
		Postage	3,000
		Stationery	40,000
		Audit fee	8,000
		Balance c/d	33,000
	2,47,800		2,47,800

Balance Sheet 
as on March 31, 2016

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
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 Rs 150.
2.	On 31.3.2013 salaries outstanding amounted to Rs 1,200 and salaries paid included Rs 6,000 for the year 2011–12.
3.	Provide 5% depreciation on Land and Building.

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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.

Particulars	Rs
Sports Fund as on April 1,2016	80,000
Sports Fund Investments	80,000
Interest on Sports Fund	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

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14. Receipt and Payment Account of Maitrey Sports Club showed that Rs 68,500 were received by way of subscriptions for the year ended on March 31, 2014.

The additional information was as under:

1. Subscription Outstanding as on March 31, 2013 were Rs 6,500,

2. Subscription received in advance as on March 31, 2013 were Rs 4,100,

3. Subscription Outstanding as on March 31, 2014 were Rs 5,400,

4. Subscription received in advance as on March 31, 2014 were Rs 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.

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15. Following is the Receipt and Payment account of Rohatgi Trust :

Receipt and Payment Account 
for the year ending December 31, 2017

Receipts		Amount (Rs.)	Payments	Amount (Rs.)
Cash in hand		14,000	Rent	6,000
Cash at Bank		60,000	Salary	12,000
Subscriptions:			Postage	300
2005	5,000		Electricity..charges	6,000
2006	83,000		Purchase of furniture	20,000
2007	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 old furniture (book value Rs 3,000)		3,200	Cash in hand	10,900
			Cash at bank	30,000
		2,60,200		2,60,200

Prepare Income and expenditure account for the year ended December 31, 2006, and a balance sheet as on that date after the following adjustments: Subscription for 2006, still owing were Rs 7,000. Interest due on defence

bonds was Rs 7,000, Rent still owing was Rs 1,000. The Book value of investment sold was Rs 80,000, Rs 30,000 of the investment were still in hand. Subscription received in 2006 included Rs 400 from a life member. The total furniture on January 1, 2006 was worth Rs 12,000. Salary paid for the year 2018 is Rs 2,000.

 

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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 (Rs.)	Payments	Amount (Rs.)
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 Rs1,100 accrued was not received.
(d)	Rent Rs600: salary Rs900 and advertisement expenses Rs 1,000 outstanding as on December 31, 2007.

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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

Receipt		Amount (Rs.)	Payment	Amount (Rs.)
Balance B/d		3,500	General Expenses	900
Subscription:			Salary	16,000
2015-16	2,000		Postage	1,300
2016-17	70,000		Electricity Chages	7,800
2017-18	3,000	75,000	Furniture	26,500
Sales of Old Books (Costing Rs 3,200)		2,000	Books	13,000
Rent from use of hall		17,000	News papers	600
Sale of newspapers		400	Meeting Expenses	7,200
Profit from entertainment		7,300	T.V. set	16,000
			Balance C/d	15,900
		1,05,200		1,05,200

Additional Information :

1. The club has 100 members each paying an annual subscription of Rs 900. Subscriptions outstanding on March 31, 2016 were Rs 3,600.

2. On March 31, 2017, salary outstanding amounted to Rs 1,000, Salary paid included Rs 1,000 for the year 2012.

3. On April 1, 2017 the club owned land and building Rs 25,000, furniture Rs 2,600 and books Rs 6,200.

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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 (Rs.)	Payments	Amount (Rs.)
Balance b/d	7250	Salary	12500
Subscriptions	81750	Stationery	1700
Donations	3000	Electricity charges	9550
Grant from Government	15000	Insurance	7500
Sale of newspapers	300	Equipment	30000
Proceeds of charity show	16500	Petty expenses	500
Interest on investments @10% for full year	7000	Expenses on charity show	12900
Sundries income	400	Newspapers	1000
		Lectures fee	16500
		Honorarium to Secretary	12000
		Balance c/d	27050
	1,31,200		1,31,200

Additional Information: 

	01.01.2017 (Rs.)	31.12.2017 (Rs.)
Outstanding salaries	1,200	1,800
Insurance prepaid	700	300
Subscription outstanding	3,750	2,500
Subscription received in advanced	1,750	1,000
Electricity charges outstanding	–	1,250
Stock of stationery	2,250	700
Equipment	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 that date.

 

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19. As at March 31, 2017 the following balances have been extracted from the books of the Indian Chartered Accountants Recreation Club and you are asked to prepare (1) Trading Account for ascertaining gross profit derived from running restaurant and dining room and (2) Income and Expenditure Account for the year ended March 31, 2017 (3) and a Balance Sheet as at that date.

Debit Balances	Amount (Rs.)	Credit Balances	Amount (Rs.)
Stock-in-hand	1,170	Receipts Dining Room	87,660
Purchases	24,660	Subscriptions	9,450
Dining Room	32,370	Billiard’s Receipts	7,300
Rent	10,470	Sunday Receipts	410
Wages	18,690	Interest on Fixed Deposit	270
Repairs and Renewals	5,400	Sundry Creditors	5310
Fuel and Light	5,280	Grant from Institute (permanent)	42,000
Misc. Expenses	4,050	Income and Exp. A/c (1.4.16)	1,380
Cash in hand	560	Suspense A/c (See note)	60
Cash at bank	2,760
Fixed Deposit	8,500
Sundry Debtors	2,250
China glass, cutlery and linen	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 restaurant consisted of ₹ 900 and ₹ 60 respectively. Provide depreciations ₹ 60 on fixtures and fittings, ₹ 390 on billiard table and ₹ 560 on furniture.

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