Show How Are the Following Items Dealt With While Preparing The Final Accounts For The Year Ended 31st March, 2019 Of A Not-For-Profit Organisation:

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Show how are the following items dealt with while preparing the final accounts for the year ended 31st March, 2019 of a Not-for-profit Organisation:

Case I
Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed. Capital Fund as at 31st March, 2018 is ₹ 20,00,000.

Case II
Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed. Pavilion Fund as at 31st March, 2018 is ₹ 10,00,000 and Capital Fund as at 31st March, 2018 is ₹ 20,00,000.

Case III
Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed. Pavilion Fund as at 31st March, 2018 is ₹ 10,00,000, and Capital Fund as at 31st March, 2018 is ₹ 20,00,000. Donation Received for Pavilion on 1st January, 2019 is ₹ 5,00,000.



Case 1

Balance Sheet 
as on March 31, 2019

Liabilities Amount (₹)Assets Amount (₹)
Capital Fund20,00,000Pavilion Work-in-Progress6,00,000

Case 2

Balance Sheet 
as on March 31, 2019

Liabilities 
 Amount (₹)AssetsAmount (₹)
Pavilion Fund10,00,000 Pavilion Work-in-Progress6,00,000
Less: Expenditure on Construction of Pavilion(6,00,000)4,00,000 
Capital Fund20,00,000  
Add: Pavilion Work-in-Progress6,00,00026,00,000 

Case 3

Balance Sheet 
as on March 31, 2019

Liabilities 
Amount (₹)Assets Amount (₹)
Pavilion Fund10,00,000  
Add: Donation5,00,000 Pavilion Work-in-Progress6,00,000
Less: Expenditure on Construction of Pavilion(6,00,000)9,00,000 
Capital Fund20,00,000  
Add: Pavilion Work-in-Progress6,00,00026,00,000 

Chapter-1 Financial Statements of Not for Profit Organisations-TS Grewal



Location: India

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