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NCERT Solutions for Class 12 Accountancy Chapter 1 - Accounting For Not For Profit Organisation

NCERT Solutions

NCERT Solutions for Class 12 Accountancy Chapter 1 - Accounting For Not For Profit Organisation

Last updated date: 17th Apr 2024

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Class 12 Accountancy NCERT Solutions Chapter 1 - Accounting for Not for Profit Organisation

Accountancy is a difficult subject. This is why if a student wants to score well in this subject, he or she needs to buckle down and study every single day. Ideally, students should spend time reading and go through the course material.

Once the student has a handle on the concepts of the chapter, then the next step for him or her is to spend time in solving questions. While doing that, students should also download Accounting for Not-for-profit Organisations Class 12 Solutions.

Class:	NCERT Solutions for Class 12
Subject:	Class 12 Accountancy
Subject Part:	Accountancy Part 1 - Partnership Accounts
Chapter Name:	Chapter 1 - Accounting For Not For Profit Organisation
Content-Type:	Text, Videos, Images and PDF Format
Academic Year:	2024-25
Medium:	English and Hindi
Available Materials:	Chapter Wise Exercise Wise
Other Materials	Important Questions Revision Notes

Downloading CBSE Class 12 Accountancy Part 1 Chapter 1 Solutions is very beneficial. Students can learn to write proper answers during the exam with the help of this material. Students can also memorize answers to questions that they find difficult. Class 12th Accountancy Partnership Accounts Chapter 1 Solutions can be downloaded from Vedantu. We also provide live classes and query resolution services to all students.

Access NCERT Solutions for Class 12 Accountancy Chapter- 1 Accounting For Not for Profit Organisation

1. State the meaning of ‘Not-for-Profit’ organizations?

Ans: Not-for-profit organisations are those organisations that are established for a charitable or social purpose and not with a view to earning profit these organisations render services to their members and to the society voluntarily or for the promotion of art culture education in sports and other social and charitable purposes.

2. State the meaning of receipt and payment account?

Ans: Receipt and payment account is prepared at the end of the year from the cash book. It includes all receipts and payments of cash including bank despite the fact whether they relate to the current year preceding year or future period or whether they are of capital or revenue nature.

3. State the meaning of income and expenditure account

Ans: Income and expenditure account is prepared to depict the result of a not for profit organisation during an accounting period. This principle of preparation of profit and loss accounts applies to the preparation of income and expenditure accounts. It is prepared on an accrual basis of accounting-based or on the principle of matching concept.

4. What are the features of Receipt and Payment accounts?

Ans: The following are the features of the receipt and payment account:

1. Receipts and payments account is a summarised form of cash book so it is a real account. Thus, all receipts are recorded on the debit side and all payments are recorded on the credit side.

2. All the receipts and payments are recorded whether they are of capital nature or revenue nature. The basis of recording is cash basis.

3. It starts with opening the balance of cash in hand or cash at the bank. Cash always has a debit balance while banks may have debit or credit balance (overdraft). Similarly, the closing balance also represents cash in hand or cash at the bank.

4. No adjustments for outstanding, depreciation, accrued income, etc. are made in it as all transactions are recorded on a cash basis.

5. It covers a period of the accounting year. All receipts whether related to the current year, previous year or future year are recorded on the receipt side. Similarly, all payments made during the year are shown on the credit side whether they relate to the current year, previous year or future year.

6. Receipts and Payments A/c merely depict cash in hand and cash at the bank at the end. It does not represent excess income over expenditure and vice versa.

5. What steps are taken to prepare an Income and Expenditure account from a Receipt and Payment account?

Answer: The steps that are involved in the preparation of the Income and Expenditure account from the Receipt and Payment account are as follows:

1. The opening balance of cash in hand and bank balance appearing in the reception payment account will be shown on the asset side of the opening balance sheet similarly closing balance of cash and bank will be shown in the closing balance sheet.

2. All the cash receipts are shown on the liabilities side of the balance sheet keeping in mind that expenses related to these funds are deducted from the concerned fund and income related to the concerned fund is added to it.

3. The items of revenue expenditure are debited to the income and expenditure account after making the necessary adjustments for outstanding and prepaid expenses in the concerned expense.

4. The income and expenditure account is closed and balanced. It will either reveal surplus or deficit.

6. What is a subscription? How is it calculated?

Answer: Subscription is the amount paid by the members of a Not-for-profit organisation on a periodical basis so that their membership is not cancelled. Thus, it is a recurring source of revenue from its members. It is calculated as under:

Computation of Subscriptions

Particulars

Rs.

Total subscriptions received during the year

Add: subscription outstanding at the end

Add: Subscription received in advance at the beginning of the year

Less: subscription outstanding at beginning ……….

Less: Subscription received in advance at the end of the year .………

……….

Subscription to be shown in income and expenditure account

……….

7. What is the capital fund? How it is calculated?

Ans: The excess of assets over liabilities in the case of a not for profit organisation is called a capital fund. The balance of income and expenditure account in the form of surplus or deficit is transferred to the Capital fund every year. This fund is also called an accumulated fund or general fund. It is calculated as:

Particulars

Rs.

Opening balance

Add: Surplus

Less: Deficit

Add: Life membership fee

……….

Capital fund at the end of the year

……….

8. Explain the statement: “Receipts and Payment Account is a summarised version of Cash Book’’.

Ans: A receipt and payments Account is prepared at the end of the year from the cash book. The receipt and payment account begins with opening cash and bank balance on the debit side. All receipts are recorded on the debit side and all payments on the credit side balance represent the closing cash and bank balance.

The similarity between receipt and payments account and cash book

The following are the features of receipt and payment account that are common to those of cash book:

All receipts are recorded on the debit side and all payments are recorded on the credit side in both.
Receipts and payment account is a real account as cash book
It starts with the opening balance of cash in hand and cash at the Bank and the closing balance also represents cash in hand and cash at the bank similar to the cash book.
No adjustment for outstanding depreciation accrued income etc. is made like the transactions recorded in the cash book.
Like a cash book, it helps to ascertain the cash in hand and cash at the bank at the end of the accounting period.

Based on the similarities the above statement, receipt and payment account is a summarised version of the cash book is justified.

9. “Income and Expenditure Account of a Not-for-Profit Organisation is akin to Profit and Loss Account of a business concern”. Explain the statement.

Ans: The income and expenditure account is a nominal account it is prepared to depict the result of a not for profit organisation during an accounting period. The principles of preparation of profit and loss accounts apply for the preparation of income and expenditure accounts as well. It is prepared on an accrual basis of accounting based on the principle of matching concept.

Similarities between income and expenditure account and profit and loss account.

Both the accounts are nominal accounts.
Revenue expenses and revenue incomes are recorded related to the current accounting period, in both accounts.
Both cash and non-cash items like Bank that depreciation etc are taken into consideration as both the accounts are prepared on an accrual basis.
Both accounts record transactions related to the current year, previous year and next year transactions are excluded.

Based on the above similarities, the income and expenditure account of a not-for-profit organisation is keen to profit and loss account of a business concern.

10. Distinguish between Receipts and Payments Account and Income and Expenditure Account.

Ans:

Basis	Receipts and Payments Account	Income and Expenditure Account
Nature of account	It is a real account.	It is a nominal account.
Nature	It is a summarised form of cash book.	It is similar to the profit and loss account of a business.
Basis	It is prepared on a cash basis of accounting.	It is prepared on an accrual basis of accounting.
Capital and revenue items	It includes the recording of items of both capital and revenue nature.	It contains recordings of only revenue items.
Period	It includes reception and payments made during the year whether they relate to past, current or future dates.	It includes income and expenditure for the current year only.
Opening balance	The opening balance represents cash in hand and cash at the Bank.	It does not contain any opening balance.
Sides	The debit side represents cash and the credit side represents cash payments.	The debit side of this account contains expenses and losses and the credit side contains incomes and gains
Closing balance	The closing balance of this account represents cash and bank balance.	The closing balance of this account represents a surplus or deficit.
Adjustments	It does not contain any adjustments. It is prepared on a cash basis.	It contains adjustments for outstanding prepaid accrued income etc. as it is prepared on an accrual basis.
Balance sheet	Receipts and payments accounts need not be accompanied by a balance sheet.	Income and expenditure accounts are generally accompanied by a balance sheet.

11. Explain the basic features of Income and Expenditure Account and Receipt and Payment Account.

Ans: The following are the features of the income and expenditure account:

It is a nominal account so expenses and losses are debited while gains and incomes are credited to this account.
It is prepared for an accounting period showing all expenses and incomes of the accounting period are shown whether paid or due.
Income and expenditure accounts are prepared on an accrual basis to show adjustments related to outstanding expenses, prepaid expenses and accrued income received in advance are made. Similarly provision for doubt that depreciation is made.
It does not include capital expenditures and capital receipts.
Both cash and non-cash items like bad depreciation etc are taken into consideration.
If an asset is sold during the year, profit on the sale of assets for loss on sale of the asset is shown in the income and expenditure account.
The balance of income and expenditure accounts at the end represents their surplus or deficit.
Income and expenditure accounts are followed by a balance sheet which consists of personal accounts and real accounts.

The following are the features of the receipt and payments account:

The receipts and payments account is a summarised form of cash book so it is a real account. Thus, all receipts are recorded on the debit side and all payments are recorded on the credit side.
All the receipts and payments are recorded whether they are of capital nature or revenue nature. The basis of recording is cash basis.
It starts with opening the balance of cash in hand or cash at the bank. Cash always has a debit balance while banks may have debit or credit balance(overdraft). Similarly, the closing balance also represents cash in hand or cash at the bank.
No adjustment for outstanding, depreciation, accrued income, etc. is made in it as all transactions are recorded on a cash basis.
It covers a period of the accounting year. All receipts whether related to the current year, previous year or future year are recorded on the receipt side. Similarly, all payments made during the year are shown on the credit side whether they relate to the current year, previous year or future year.
Receipts and Payments A/c merely depict cash in hand and cash at the bank at the end. It does not represent excess income over expenditure and vice versa.

12. Show the treatment of the following items by a not-for-profit organisation:

(i) Annual subscription

(ii) Specific donation

(iii) Sale of fixed assets

(iv) Sale of old periodicals

(v) Sale of sports materials

(vi) Life membership fee

(i) Annual subscription

Ans:

(i) It is shown on the debit side of the receipts and payments account

(ii) Amount related to the current year whether received or not received are shown on the credit side of the income and expenditure account.

(iii) Advance subscriptions are shown on the liability side of the balance sheet

(iv) Subscription outstanding are shown on the asset side of the balance sheet

(ii) Specific donation

Ans:

(i) Specific donation received is shown on the debit side of the receipts and payments account.

(ii) These are shown on the liability side of the balance sheet account.

(iii) Sale of fixed assets

Ans:

(i) The amount received from the sale of fixed assets are recorded on the debit side of the receipts and payments account

(ii) Profits on the sale of assets is credited and losses on the sale of fixed assets are debited to the income and expenditure account

(iii) The book value of the fixed assets sold is deducted from its respective assets on the asset side of the balance sheet

(iv) Sale of old periodicals

Ans:

(i) Sound received from the sale of old periodicals are shown on the debit side of the receipts and payments account

(ii) Sale of old periodicals is shown on the credit side of the income and expenditure account

(v) Sale of sports materials

Ans:

(i) The amount received from the sale of sports material are debited to the receipts and payments account

(ii) Sale of sports material is shown on the credit side of the income and expenditure account as it is a revenue income

(vi) Life membership fee

Ans:

(i) It is debited to the receipts and payments account

(ii) Life membership fees are added to the capital fund on the liabilities side of the balance sheet as it is a capital receipt.

13. Show the treatment of items of Income and Expenditure Account when there is a specific fund for those items.

Ans: Income and expenditure are prepared on the accrual basis of accounting based on the principle of matching concept i.e. adjustment relating to outstanding expenses prepaid expenses accrued income received in advance and depreciation are made. Incomes are shown on the credit side while expenses are shown on the debit side. There is no opening balance in the income and expenditure account but the closing balance reveals surplus if there is an excess of income over expenditure and reveals deficit if there is an excess of expenditure over income. The treatment of items when there is a specific fund for those items:

Treatment

(Tournament/Match/Prize, etc.) Fund Account

Dr. Cr.

Date

Particulars

L.F.

Amount

Date

Particulars

L.F.

Amount

Expenses (expenses incurred like match expenses, tournament expenses)

Balance c/d (b)

Balance b/d

Incomes (income or interest earned on funds invested in the form of donation, interests, dividends, etc.)

Income and Expenditure A/c (a)

(a) If the receipts exceed the expenses for specific purposes then the difference between the two is shown in the Liabilities side of the Balance Sheet.

(b) If the expenses exceed the receipts for the specific purpose then the difference between the two is shown in the Expenditure side of the Income and Expenditure Account.

14. What is a Receipt and Payment Account? How is it different from Income and Expenditure Account?

Ans: Receipt and payment account is a summary of cash and Bank transactions during an accounting year of a not for profit organisation. Receipts and payments account is prepared at the end of the year from the cash book. The reception and payments account includes all receipts and payments of cash including Bank despite the fact that they are related to the current year preceding year or future period or whether they are of capital nature or revenue nature.

Basis	Receipts and Payments Account	Income and Expenditure Account
Nature of account	It is a real account.	It is a nominal account.
Nature	It is a summarised form of cash book.	It is similar to the profit and loss account of a business.
Basis	It is prepared on a cash basis of accounting.	It is prepared on an accrual basis of accounting.
Capital and revenue items	It includes the stock recording of items of both capital and revenue nature.	It contains recordings of only revenue items.
Period	It includes reception and payments made during the year whether they relate to past, current or future dates.	It includes income and expenditure for the current year only.
Opening balance	The opening balance represents cash in hand and cash at the Bank.	It does not contain any opening balance.
Sides	The debit side represents cash and the credit side represents cash payments.	The debit side of this account contains expenses and losses and the credit side contains incomes and gains
Closing balance	The closing balance of this account represents cash and bank balance.	The closing balance of this account represents a surplus or deficit.
Adjustments	It does not contain any adjustments. It is prepared on a cash basis.	It contains adjustments for outstanding prepaid accrued income etc. as it is prepared on an accrual basis.
Balance sheet	Receipts and payments accounts need not be accompanied by a balance sheet.	Income and expenditure accounts are generally accompanied by a balance sheet.

Numerical Questions

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
Subscriptions	1,65,000
Donations	35,000
Investment Purchased	80,000
Rent Paid	20,000
General Expenses	21,500
Postage and stationery	2,000
Courier charges	1,000
Sundry Expenses	2,500
Closing Cash in Hand	12,000

Ans:

Receipts and Payment A/c
Receipts	Amount	Payment	Amount
To Balance b/d:		By Investment purchased	80000
Cash in hand	5000	By Rent paid	20000
Cash at bank	25000	By General Expenses	21500
To Subscriptions	165000	By Postage and Stationary	2000
To Donations	35000	By Courier Charges	1000
		By Sundry Expenses	2500
		By Balance c/d:
		Cash in hand	12000
		Cash at bank	91000
	230000		230000

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

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

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
Balance b/d		Furniture	3,000
Cash at Bank	22,000	Investments	55,000
Cash in Hand	8,800	Advance for building	20,000
Donations	16,000	Charities	60,000
Subscriptions	50,200	Salaries	10,400
Endowment fund	60,000	Rent and Taxes	4,000
Legacies	12,000	Printing	1,000
Interest on Investment	3,800	Postage	300
Interest on Deposits	800	Advertisements	1,100
Sale of old newspapers	500	Insurance	4,800
Donation for building	16,000	Balance c/d:
Legacy for building	12,000	Cash at bank	32,000
		Cash in hand	10,500
	2,02,100		2,02,100

Prepare the Income and Expenditure Account for the Year ended on March 31, 2015, after considering the following:

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

ii. Rs. 2,000 due for interest on investment was not actually received.

Ans:

Income and Expenditure A/c
for the year ending March 31, 2007
Expenditure		Amount	Income		Amount
To Charities		60000	By Donations		16000
To Salaries	1040 0		By Subscriptions		50200
(+) O/s Salary	1200	11600	By Legacies		12000
To Rent and Taxes	4000		By Interest on Investment	380 0
(+) O/s Rent	800	4800	(+) Accrued Interest	200 0	5800
To Printing		1000	By Interest on Deposits		800
To Postage		300	By Sale of Old Newspapers		500
To Advertisement		1100
(+) O/s Advertisement		200	1300
To Insurance		4800
To Surplus (BF)		1500
		85300			85300

Working:

(i) Legacies = 50% of 24000 = 12000
Donations = 50% of 32000 = 16000

3. From the following particulars, prepare an Income and Expenditure account:

Details	Amount (Rs.)
Fees collected, including Rs.80,000 on account of the	5,20,000
previous year
Fees for the year outstanding	30,000
Salary paidthe the, including Rs. 5,000 on account	68,000
of the previous year
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	40,000
Rs. 31,000 for purchase of Books
Rent	15,000
Postage, telegrams and telephones	6,000
Printing and Stationery	18,000
Donations received	25,000

Ans:

Income and Expenditure A/c
Expenditure		Amount	Income		Amount
To Salaries	6800 0		By Fees	52000 0
(-) O/s Salary of PY	5000		(-) O/s Fees of PY	80000
	6300 0			44000 0
(+) O/s Salary of CY	3000	66000	(+) Fees Receivable	30000	47000 0
To Entertainment Expense		8000	By Donation Received		25000
To Tournament Expense		25000
To Meeting Expense		18000
To Travelling Expense		7000
To Purchase of Periodicals		9000
To Rent		15000
To Postage, Telegram, Telephones		6000
To Printing and Stationary		18000
To Surplus		32300 0
		49500 0			49500 0

Working:
Purchase of Periodicals = 40000 – 31000 = 9000

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:

	Rs.
Sports Fund as on 1.4.2015	35,000
Sports Fund Investments	35,000
Interest in Sports Fund	4,000
Donations for Sports Fund Investment	15,000
Sports Prizes awarded	10,000
Expenses on Sports Events	4,000
General Fund	80,000
General Fund Investments	80,000
Interest on General Fund Investments	8,000

Ans:

Income and Expenditure A/c
Expenditure	Amount		Income			Amount
			By Interest on General Fund			8000
			Investment
Balance Sheet
Liabilities				Amount	Assets	Amount
Sports Fund		35000			Sports Fund Investment	35000
(+) Interest in Sports Fund		4000			General Fund Investment	80000
(+) Donation for Sports Fund		15000
		54000
(-) Expenses on Sports Event		4000
(-) Prize Awarded		10000		40000
General Fund				80000

5. How will you deal with the following items while preparing for the Bombay Women Cricket Club its income and expenditure account for the year ending 31.3.2017 and its Balance Sheet as of 31.3.2017:

	Rs.
(a) Donation received during the year for the	12,25,000
construction of a permanent Pavilion
Expenditure incurred up to 31.3.2017 on its construction	10,80,000
The total estimated expenditure on construction	25,00,000
of Pavilion being
(b) Tournament Fund:
Balance as on 1.4.2016	10,700
Subscriptions for tournaments received during the year	65,800
Expenditure incurred during the year on conducting	72,400
tournaments
(c) Life Membership fee received during the year	28,000

Give reasons for your answers.

Ans: (a)

Balance Sheet as of March 31, 2007
Balance Sheet as of March 31, 2007
Liabilities		Amount	Assets	Amount
Donation for Pavilion	122500 0		Construction of Pavilion in Progress	108000 0
(-) Expenses on Construction of Pavilion	108000 0	145000
Capital
(+) Pavilion Construction	108000 0	108000 0

Reason:

A donation for the construction of the Pavilion is a donation for a specific purpose.

Expense on construction on the Pavilion is a Capital Expenditure.

Balance Sheet
as of March 31, 2017
Liabilities		Amount	Assets	Amount
Tournament Fund	1070 0
(+) Subscription for Tournament	6580 0
	7650 0
(-) Tournament Expenses	7240 0	4100

Reason:

All funds received are treated as capital receipts and expenses related to any fund are reduced from the concerned funds

Balance Sheet

as of March 31, 2017

Liabilities

Amount

Assets

Amount

Life Membership Fee

28000

Reason:

Life Membership Fees are considered as capital receipts and are shown on the Liabilities side on the Balance Sheet if nothing is specified about its treatment. But if it is to be treated as a revenue item, then it is shown on the credit side of the Income and Expenditure account.

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

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

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
Balance b/d		General Expenses	3,200
Cash in hand	4,000	Newspaper	1,850
Cash at Bank	15,550	Electricity	3,000
Subscriptions		Fixed deposit with a bank	18,000
2016 1,200		(on 31.06.2017) @ 10% p.a.
2017 26,500		Books	7,000
2018 500	28,200	Salary	3,600
Sale of old newspapers	1,250	Rent	6,500
Govt. grant	12,000	Postage charges	300
Sale of old furniture		Furniture (purchased)	10,500
(book value Rs.5000)	3,700	Balance c/d
Interest received on FD	450	Cash in hand	3,000
		Cash at bank	8,200
	65,150		65,150

Information:

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

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

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

Ans:

Income and Expenditure A/c for the year ending December 31, 2017

Expenditure	Amount	Income		Amount
Loss on sale of old furniture	1300	Subscription	2650 0
General Expenses	3200	(+) O/s for 2006	1500	28000
Newspaper	1850	Sale of old newspaper	1250
Electricity	3000	Government Grant	12000
Salary	360 0		Interest received on FD	450
(+) O/s Salary for 2006	600	4200	(+) Accrued interest	450
Rent	650 0
(-) Prepaid for 2007	500	6000
[6500 x (1/3)]
Postage Charges	300
Surplus	22300
	42150		42150

Balance Sheet as of December 31, 2017
Balance Sheet as of December 31, 2017
Liabilities	Amount	Assets	Amount
Capital Fund (BF)	38550	Subscription Outstanding	2000
		Cash in hand	4000
		Cash at bank	15550
		Furniture	12000
		Books	5000
	38550		38550

Balance Sheet as of December 31, 2017
Balance Sheet as of December 31, 2017
Liabilities		Amount	Assets		Amount
Capital	3855 0		Prepaid Rent		500
(+) Surplus	2230 0	60850	Books	5000
Salary O/s		600	(+) Purchases	7000	12000
Subscription received in advance		500	Furniture	1200 0
			(+) Purchases	1050 0
				2250 0
			(-) Sale	5000	17500
			Fixed Deposit	1800 0
			(+) Accrued Interest	450	18450
			Cash in hand		3000
			Cash at bank		8200
			O/s Subscription for 2006	1500
			(+) O/s for 2005	800	2300
		61950			61950

7. The following is the Receipt and Payment Account of the Nari Kalyan Samittee for the year ended December 31, 2017:

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
Balance from last year b/d	2,270	Rent	6,600
Subscriptions	32,500	Electric charges	3,200
Life membership fee	3,250	Lecturer’s fee	730
Donation	2,500	Office expenses	1,480
Profit from entertainment	7,250	Printing and Stationery	1,050
Sale of old Books	750	Legal fee	1,870
(books value Rs.1,000)		Books	6,500
Interest	350	Furniture purchased	8,600
		Expenses on nukar drama	1,300
		Balance c/d: Cash in hand	8,040
		Cash at bank	9,500
	48,870		48,870

You are required to prepare an Income and Expenditure Account after the following adjustments:

(a) Subscription still to be received are Rs.750, but subscription includes Rs.500 for the year 2018.

(b) At the beginning of the year the Samiti owned building Rs.20,000 and furniture Rs.3,000 and Books Rs.2,000.

Ans:

Income and Expenditure A/c for the year ending December 31, 2017

Expenditure		Amount	Income		Amount
Rent		6600	Subscription	3250 0
Electric Charge		3200	(+) O/s for 2006	750
Lecture's fee		730		3325 0
Office Expenses		1480	(-) Advance for 2007	500	32750
Depreciation on:			Donation		2500
Books	750		Profit from Entertainment		7250
Furniture	580		Interest		350
Building	100 0	2330
Printing and Stationery	1050
Legal fee	1870
Expenses on Nukar Drama	1300
Loss on sale of books	250
Surplus	24040
	42850		42850

Balance Sheet as of December 31, 2017
Balance Sheet as of December 31, 2017
Liabilities	Amount	Assets	Amount
Capital Fund (BF)	27270	Building	20000
		Furniture	3000
		Books	2000
		Cash and Bank	2270
	27270		27270

Balance Sheet as of December 31, 2016
Balance Sheet as of December 31, 2016
Liabilities		Amount	Assets		Amount
Capital Fund	2727 0		Building	2000 0
(+) Life Membership Fees	3250		(-) 5% Depreciation	1000	19000
(+) Surplus	2404 0	54560	Furniture	3000
Advance Subscription for 2007	500	(+) Purchase	8600
			1160 0
		(-) 5% Depreciation	580	11020
		Books	2000
		(+) Purchase	6500
			8500
		(-) Sales	1000
			7500
		(-) 10% Depreciation	750	6750
		Cash in hand	8040
		Cash at bank	9500
		O/s Subscription	750
	55060		55060

8. Following is the Receipt and Payment Account of Indian Sports Club, prepared Income and Expenditure Account, Balance Sheet as of 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 membership fee	2,200	Billiard Table	17,500
Entrance fee	3,200	Office expenses	4,100
Tournament fund	26,000	Printing & Stationery	2,300
Locker Rent	1,250	Tournament expenses	18,500
Sale of old sports equipment		Repair of ground	2,000
(Costing Rs.2,200)	2,500	Furniture purchased Sports equipment	7,700
Sale of old newspaper	750	Furniture purchased Sports equipment	12,000
Legacy	37,500	Cash in hand	12,690
		Cash at bank	10,000
		Fixed deposit (on 1.10.2017 for 10% p.a)	30,000
	1,33,290		1,33,290

Other Information:

Subscription outstanding was on December 31, 2016, Rs.1,200 and Rs.3,200 on December 31, 2017. Locker rent outstanding on December 31, 2017 Rs.250. Salary outstanding on December 31, 2017, Rs.1,000.

On January 1, 2017, club has Building Rs.36,000, furniture Rs.12,000, Sports equipments Rs.17,500. Depreciation charged on these items @ 10% (including Purchase).

Ans:

Income and Expenditure A/c for the year ending December 31, 2017

Expenditure			Amount	Income		Amount
Salary	1100 0			Subscription	5200 0
(+) O/s Salary for 2006	1000		12000	(+) O/s for 2016	3200
Electric Charge			5500		5520 0
Office Expenses			4100	(-) O/s for 2015	1200	54000
Depreciation on:				Locker Rent	1250
Furniture		1970		(+) O/s for 2016	250	1500
Building		3600		Entrance Fees		3200
Sports Equipment		2730	8300	Profit on sale of sports equipment		300
Printing and Stationery			(2500 - 2200) 2300
Repair of Ground			2000	Sale of Old Newspaper		750
Surplus			26300	Accrued Interest		750
			60500			60500

Balance Sheet as of December 31, 2017
Balance Sheet as of December 31, 2017
Liabilities	Amount	Assets	Amount
Capital Fund (BF)	74590	Subscription O/s	1200
		Building	36000
		Furniture	12000
		Books	17500
		Cash and Bank	7890
	74590		74590

Balance Sheet as of December 31, 2017
Balance Sheet as of December 31, 2017
Liabilities		Amount	Assets	Amount
Salary O/s		1000	Subscription O/s	3200 250
Tournament Fund	2600 0		Locker Rent O/s	3200 250
(-) Tournament Expenses	1850 0	7500	Building	3600 0
Capital Fund	7459 0		(-) 10% Depreciation	3600	32400
(+) Life Membership Fees	2200		Furniture	1200 0
(+) Legacy	3750 0		(+) Purchase	7700
(+) Surplus	2630 0	14059 0		1970 0
			(-) 10% Depreciation	1970	17730
			Sports Equipment	1750 0
			(+) Purchase	1200 0
				2950 0
			(-) Sales	2200
				2730 0
			(-) 10% Depreciation	2730	24570
		Billiard Table	17500
			Cash in hand	12690
			Cash at bank	10000
			Fixed Deposit	3000 0
			(+) Accrued Interest	750	30750
	149090				149090

9. From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account and Balance Sheet for the year ending March 31, 2017.

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

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
Cash in hand as on 1.4.16	6,800	Salaries	24,000
Subscription	60,200	Travelling Expenses	6,000
Donation	3,000	Stationery	2,300
Sale of furniture	4,000	Rent	16,000
(Book value Rs.6000)		Repair	700
Entrance fee	800	Books purchased	6,000
Life membership fee	7,000	Building purchased	30,000
Interest on investment	5,000	Cash in hand as 31.03.2017	1,800
(@ 5% for full-year)
	86,800		86,800

Additional Information:

	As on 01.04.2016	As on 31.03.2017
(i) Subscription received in advance	1,000	3,200
(ii) Outstanding subscription	2,000	3,700
(iii) Stock of stationery	1,200	800
(iv) Books	13,500	16,500
(v) Furniture	16,000	8,000
(vi) Outstanding rent	1,000	2,000

Ans:

Income and Expenditure A/c for the year ending December 31, 2017

Expenditure		Amount	Income		Amount

Salary		24000	Subscription	6020 0
Loss on sale of Furniture		2000	(+) O/s for 2006	3700
(6000 - 4000)				6390 0
Travelling Expense		6000	(-) O/s for 2005	2000
Depreciation on:				6190 0
Furniture	2000		(+) Advance in 2005	1000
Books	3000	5000		6290 0
Stationary	2300		(-) Advance in 2006	3200	59700
(+) Opening Stock	1200		Donation		3000
	3500		Entrance Fees		800
(-) Closing Stock	800	2700	Interest on Investments		5000
Repairs		700
Rent	1600 0
(-) O/s for 2005	1000
	1500 0

(+) O/s for 2006	2000	17000
Surplus		11100
		68500			68500

Balance Sheet as of December 31, 2017
Balance Sheet as of December 31, 2017
Liabilities	Amount	Assets	Amount
Advanced Subscription	1000	Cash in hand	6800
O/s Rent	1000	Investment [5000 x (100/5)]	100000
Capital Fund (BF)	137500	O/s Subscription	2000
		Stock of Stationary	1200
		Books	13500
		Furniture	16000
	139500		139500

Balance Sheet as of December 31, 2017
Balance Sheet as of December 31, 2017
Liabilities		Amount	Assets		Amount
Advanced Subscription		3200	Subscription O/s		3700
O/s Rent		2000	Stock of Stationary		800
Capital Fund	13750 0		Investments		10000 0

(+) Life Membership Fees	7000		Furniture	1600 0
(+) Surplus	11100	15560 0	(-) Sales	6000
				1000 0
			(-) Depreciation	2000	8000
			Books	1350 0
			(+) Purchase	6000
				1950 0
			(-) Depreciation	3000	16500
			Building		30000
			Cash in hand		1800
		16080 0			16080 0

10. Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017

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

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
Opening Cash in hand	2,600	Rent	18,000
Entrance fees	3,200	Wages	7,000
Donation for building	23,000	Billiard table	14,000
Locker rent	1,200	Furniture	10,000
Life membership fee	7,000	Interest	2,000
Profit from entertainment	3,000	Postage	1,000
Subscription	40,000	Salary	24,000
		Cash in hand	4,000
	80,000		80,000

Prepare Income and Expenditure Account and Balance Sheet with help of the following Information:

Subscription outstanding on March 31, 2016,ofofThe stock is Rs.1, 200 and Rs.2, 300 on March 31, 2017, opening stock of postage stamps is Rs.300 and closing stock is Rs. 200, Rent Rs.1, 500 related to 2015 and Rs.1, 500 is still unpaid.

On April 1, 2016 the club owned furniture Rs.15, 000, Furniture valued at Rs. 22,500 as on March 31, 2017. On March 31, 2016, the club had a loan of Rs.20,000 (@ 10% p.a).

Ans:

Income and Expenditure A/c for the year ending December 31, 2006

Expenditure		Amount	Income		Amount

Salary		24000	Subscription	4000 0
Wages		7000	(+) O/s for 2006	2300
Depreciation on Furniture		2500		4230 0
Interest		2000	(-) O/s for 2005	1200	41100
Rent	1800 0		Entrance Fees		3200
(+) O/s for 2006	1500		Locker Rent		1200
	1950 0		Profit from Entertainment		3000
(-) O/s for 2005	1500	18000	Deficit (BF)		6100
Postage	1000
(+) Opening Stock	300
	1300
(-) Closing Stock	200	1100
		54600			54600

Balance Sheet
as of December 31, 2015
Liabilities	Amount	Assets	Amount
10% Loan	20000	Cash in hand	2600

O/s Rent	1500	Stock of Postage Stamps	300
		O/s Subscription	1200
		Furniture	15000
		Capital Fund Deficit (BF)	2400
	21500		21500

Balance Sheet as of December 31, 2016
Balance Sheet as of December 31, 2016
Liabilities		Amount	Assets		Amount
10% Loan		20000	Subscription O/s		2300
O/s Rent		1500	The stock of Postage Stamps		200
Donation for Building		23000	Billiard Table		14000
Capital Fund	- 240 0		Cash in hand		4000
(+) Life Membership Fees	700 0		Furniture	1500 0
(-) Deficit	610 0		(+) Purchase	1000 0
				2500 0

			(-) Depreciation	2500	22500
			Capital Fund Deficit		1500
		44500			44500

11. Prepare Income and Expenditure Account and Balance Sheet for the year ended March 31, 2016, from the following Receipt and Payment Account and Balance Sheet of culture club:

Receipt and Payment Account for the year ending March 31, 2016

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
Opening cash balance	12,000	Furniture	4,000
Subscription		Telephone expenses	800
2014-15 2,000		Salary
2015-16 22,000	24,000	2014-15	1,000
Entrance fees	2,800	2015-16	4,000
Locker rent	1,000	Newspapers	700
Life membership fee	1,200	Sundry expenses	1,000
Government grant	11,000	Defence bonds	18,000
		Land	20,000
		Closing cash balance	2,500
	52,000		52,000

Balance Sheet for the year ending March 31, 2015

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Advance locker rent	200	Cash in hand	12,000
Subscription received in	1,000	Outstanding subscription	3,000
Advance		Building	35,000
Outstanding salary	2,000
Loan	10,000
Capital fund	36,800
	50,000		50,000

Ans:

Income and Expenditure A/c
for the year ending December 31, 2016
Expenditure	Amount	Income		Amount
Salary	4000	Subscription	2200 0
Telephone Expenses	800	(+) Advance in 2005	1000	23000
Newspaper	700	Locker Rent	1000
Sundry Expenses	1000	(+) Advance in 2005	200	1200
Surplus	31500	Entrance Fees		2800
		Government Grants		11000
	38000			38000

Balance Sheet as of December 31, 2016
Liabilities		Amount	Assets	Amount
Loan		10000	Subscription O/s for 2015	1000
O/s Salary for 2005		1000	(3000 - 2000)

Capital Fund	3680 0		Furniture	4000
(+) Life Membership Fees	1200		Defence bonds	18000
(-) Deficit	3150 0	69500	Land	20000
			Building	35000
			Cash in hand	2500
		80500		80500

12. From the following Receipt and Payment Account prepare final accounts of a Unity Club for the year ended March 31, 2017

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

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

Balance Sheet as of 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 31.3.2017 salaries outstanding amounted to Rs. 1,200 and salaries paid included Rs. 6,000 for the year 2015-16.

3. Provide 5% depreciation on Land and Building.

Ans:

Income and Expenditure A/c for the year ending March 31, 2017

Expenditure		Amount	Income	Amount
Loss on sale of Old Furniture		2000	Subscription	75000
(6000 - 4000)			(500 members at Rs.150 each)
General Expenses		18000	Sale of Old Newspaper	10800
Electric Charges		12000	Profit from Entertainment	44000
Salaries	72000		Rent	84000
(+) O/s for 2005-06	1200		Deficit (BF)	200
	73200
(-) O/s for 2006-07	6000	67200
Newspaper		33800
Postage		3000
Stationary		40000
Audit Fees		8000
Depreciation on Land and Building		30000
		214000		214000

Balance Sheet as on March 31, 2017


Liabilities		Amount	Assets		Amount
Advance Subscription for 2007-08		12000	Subscription O/s		15000
O/s Salaries		1200	Cash and Bank		33000
Capital Fund	69400 0		Furniture	37000
(-) Deficit	200	69380 0	(+) Purchase	18000
				55000
			(-) Sales	6000	49000
			Library Books	30000
			(+) Purchase	10000	40000
			Land and Building	60000 0
			(-) 5% Depreciation	30000	57000 0
		70700 0			70700 0

13. Following is the information in respect of certain items of a Sports Club. You are required to show them in the Income and Expenditure Account and the Balance Sheet

Details	Amount (Rs.)
Sports Fund as on April 1, 2016	80,000
Sports Fund Investments	80,000
Interest in Sports Fund Investments	8,000
Donations for Sports Fund	30,000
Sports Prizes awarded	16,000
Expenses on Sports Events	7,000
General Fund	2,00,000
General Fund Investments	2,00,000
Interest on General Fund Investments	20,000

Ans:

Income and Expenditure A/c for the year ending March 31, 2016
Expenditure	Amount	Income	Amount
		By Interest in General Fund Investment	20000

Balance Sheet as of March 31, 2016
Liabilities		Amount	Assets	Amount
Sports Fund	80000		Sports Fund Investment	80000
(+) Interest in Sports Fund	8000		General Fund Investment	200000

(+) Donation for Sports Fund	30000
	11800 0
(-) Events	7000
(-) Sports Prize Awarded	16000	95000
General Fund		200000

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, 2017.

The additional information was as under:

1. Subscription Outstanding as of March 31, 2016, was Rs. 6,500,

2. Subscription received in advance as of March 31, 2016, were Rs. 4,100,

3. Subscription Outstanding as of March 31, 2017, were Rs. 5,400,

4. Subscription received in advance as of March 31, 2017, 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.

Ans:

Income and Expenditure A/c for the year ending March 31, 2017

Expenditure	Amount	Income		Amount
		Subscription	6850 0
		(-) O/s on March 31, 2015	6500
			6200 0
		(+) Advance on March 31, 2005	4100
		(+) O/s on March 31, 2016	5400
			7150 0
		(-) Advance on March 31, 2016	2500	69000

Balance Sheet as of March 31, 2016
Balance Sheet as of March 31, 2016
Liabilities	Amount	Assets	Amount
Subscription in Advance	4100	Subscription Outstanding	6500

Balance Sheet as of March 31, 2017
Balance Sheet as of March 31, 2017
Liabilities	Amount	Assets	Amount
Subscription in Advance	2500	Subscription Outstanding	5400

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
Subscription: 2016 5,000 2017 83,000 2018 3,000 Sale of investment		Postage	300
		Electricity charges	6,000
		Purchase of furniture	20,000
	91,000	Books	3,000
	90,000	Defence Bonds	1,50,000
Interest on investment	2,000	Help to needy students	22,000
Sale of 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, 2017, and a balance sheet as of that date after the following adjustments: Subscription for 2017, 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 2017 included Rs. 400 from a life member. The total furniture on January 1, 2017, was worth Rs.12,000. Salary paid for the year 2018 is Rs.2,000.

Ans:

Income and Expenditure A/c for the year ending December 31, 2017

Expenditure		Amount	Income		Amount
Postage Charges		300	Subscription	8300 0
Electricity		6000	(+) O/s for 2016	7000
Help to needy students		22000		9000 0
Salary	6000		(-) Life membership Fees	400	89600
(+) O/s Salary for 2006	1000	7000	Interest Accrued on Defence Bonds		7000

Rent	1200 0		Profit on sale of investments		10000
(-) Prepaid for 2017	2000	10000	(90000 - 80000)
Surplus		63500	Profit on sale of furniture		200
			(3200 - 3000)
			Interest on Investments		2000
		10880 0			10880 0

Balance Sheet as of December 31, 2016
Balance Sheet as of December 31, 2016
Liabilities	Amount	Assets	Amount
Capital Fund (BF)	201000	Subscription Outstanding	5000
		Cash in hand	14000
		Cash at bank	60000
		Furniture	12000
		Investment (80000 + 30000)	110000
	201000		201000

Balance Sheet as of The salary December 31, 2017

Liabilities		Amount	Assets		Amount

Capital	20100 0		O/s Subscription		7000
(+) Surplus	63500		Defence Bonds	15000 0
(+) Life Membership Fees	400	26490 0	(+) Accrued Int. on Def. Bonds	7000	15700 0
Subscription received in advance		3000	Furniture	12000
O/s Rent		1000	(+) Purchases	20000
				32000
			(-) Sale	3000	29000
			Investments		30000
			Advance Salaries		2000
			Cash in hand		10900
			Cash at bank		30000
			Books		3000
		26890 0			26890 0

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.)	Payment	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	Insurance es	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 ofofThe salaryofofThe stock 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.

(d) Rent Rs.600: salary Rs.900 and advertisement expenses Rs.1,000 outstanding as of December 31, 2018.

Ans:

Income and Expenditure A/c
for the year ending December 31, 2017
Expenditure		Amount	Income		Amount
Insurance	200 0		Interest on Investments	450 0
(-) Prepaid [2000 x (3/15)]	400	1600	(+) Accrued Interest	110 0	5600
Rent and Taxes	320 0		Donation [9000 x (1/3)]		3000
(+) O/s Rent	600	3800	Subscription		42800
Salary	600 0		Sale of Old Newspaper		200
(+) O/s Salary	900	6900
Advertisement	450 0
(+) O/s	100 0	5500
Charity		11500
Printing		600
Postage		300
Surplus		21400
		51600			51600

Balance Sheet as of December 31, 2016
Balance Sheet as of December 31, 2016
Liabilities	Amount	Assets	Amount

Capital Fund (BF)	24100	Cash at hand	11500
		Cash at bank	12600
	24100		24100

Balance Sheet as of December 31, 2017

Liabilities		Amount	Assets		Amount
Capital	2410 0		Prepaid Insurance [2000 x (3/15)]		400
(+) Surplus	2140 0		Investments	2300 0
(+)Legacies	1800 0		(+) Accrued Interest	1100	24100
(+) Donation [9000 x (2/3)]	6000	69500	Furniture		21600
O/s Rent		600	Cash in hand		9900
O/s Salary		900	Cash at bank		16000
O/s Advertisement Expenses		1000
		72000			72000

17. From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended March 31, 2017, of and the Balance Sheet as of that date.

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

Receipts	Amount (Rs.)	Payments	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 charges	7,800
2017-18 3,000	75,000	Furniture	26,500
Sale of old Books	2,000	Books	13,000
(costing Rs.3,200)		Newspapers	600
Rent from use of the hall	17,000	Meeting expenses	7,200
Sale of newspapers	400	T.V. set	16,000
Profit from entertainment	7,300	Balance c/d	15,900
	1,05,200		1,05,200

Additional Information:

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

(b) On March 31, 2017, salary outstanding amounted to Rs.1,000, Salary paid included Rs. 1,000 for the year 2016.

Ans:

Income and Expenditure A/c for the year ending December 31, 2017

Expenditure		Amount	Income		Amount
Salary	1600 0		Subscription	7000 0
(+) O/s for 2016	1000		(+) O/s for 2016	2000 0	90000
	1700 0		Rent from use of the hall		17000
(-) O/s for 2015	1000	16000	Sale of Old Newspaper		400
General Expenses		900	Profit from Entertainment		7300
Loss on sale of Old Books		1200
Electricity Charges		7800
Newspaper		600
Meeting Expenses		7200
Postage		1300
Surplus		79700
		114700			114700

Balance Sheet as of December 31, 2016
Balance Sheet as of December 31, 2016
Liabilities	Amount	Assets	Amount
O/s Salary	1000	O/s Subscription	3600
Capital Fund (BF)	39900	Furniture	2600
		Books	6200
		Cash and Bank	3500
		Building	25000
	40900		40900

Balance Sheet as of, December 31, 2017
Balance Sheet as of, December 31, 2017
Liabilities		Amount	Assets		Amount
Capital	3990 0		O/s Subscription 2016	2000 0
(+) Surplus	7970 0	11960 0	(+) 2015 Subscription still O/s	1600	21600
Advanced Subscription		3000	Furniture	2600
O/s Salary		1000	(+) Purchase	2650 0	29100
			Books	6200
			(+) Purchase	1300 0
				1920 0

			(-) Sales	3200	16000
			Building		25000
			T.V. Set		16000
			Cash and Bank		15900
		12360 0			12360 0

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	7,250	Salary	12,500
Subscriptions	81,750	Stationery	1,700
Donations	3,000	Electricity charges	9,550
Grant from Government	15,000	Insurance	7,500
Sale of newspapers	300	EquipmentAdvanced	30,000
Proceeds of charity show	16,500	Petty expenses	500
Interest on investments	7,000	Expenses on charity show	12,900
@ 10% for full year		Newspapers	1,000
Sundries income	400	Lectures fee	16,500
		Honorarium to Secretary	12,000
		Balance c/d	27,050
	1,31,200		1,31,200

Additional Information:

	01.01.2017 (Rs.)	31.12.2017 (Rs.)
Outstanding salaries	1,200	1,800
Insurance prepaid	700	300
Subscription outstanding	3,750	2,500
Subscription received in advance	1,750	1,000
Electricity charges outstanding	—	1,250
Stock of stationery	2,250	700
Equipments	25,600	50,200
Building	1,20,000	1,14,000

Prepare Income and Expenditure Account for the year ended December 31, 2017, and Balance Sheet as on date.

Ans:

Income and Expenditure A/c for the year ending December 31, 2017

Expenditure		Amount	Income		Amount
Salary	125 00		Subscription	81750
(+) O/s for 2017	180 0		(+) O/s for 2017	2500

	143 00			84250
(-) O/s for 2016	120 0	1310 0	(-) O/s for 2016	3750
Stationary	170 0			80500
(+) Opening Stock	225 0		(+) Advance on 2016	1750
	395 0			82250
(-) Closing Stock	700	3250	(-) Advance on 2017	1000	8125 0
Electric Charges	955 0		Donations		3000
(+) O/s for 2017	125 0	1080 0	Grant from Government		1500 0
Insurance	750 0		Sale of Newspaper		300
(+) Prepaid in 2016	700		Profit from Charity Show (16500 - 12900)		3600
	820 0		Interest on Investments		7000
(-) Prepaid in 2017	300	7900	Sundries Income		400
Dep. on Equipment		5400
Petty Expenses		500
Newspaper		1000

Lecture Fees		1650 0
Honorarium to Secretary		1200 0
Dep. on Building		6000
Surplus		3410 0
		1105 50			1105 50

Balance Sheet as of, full-year December 31, 2016
Balance Sheet as of, full-year December 31, 2016
Liabilities	Amount	Assets	Amount
O/s Salary	1200	Insurance Prepaid	700
Subscription in Advance	1750	O/s Subscription	3750
Capital Fund (BF)	226600	Stock of Stationary	2250
		Equipment	25600
		Building	120000
		Cash and Bank	7250
		Investment [7000 x (100/10)]	70000
	229550		229550

Balance Sheet as of December 31, 2017

Liabilities		Amount	Assets		Amount
Capital	22660 0		Equipment	25600
(+) Surplus	34100	260700	(+) Purchase	30000
Advance Subscription		1000		55600
O/s Salary		1800	(-) Depreciation	5400	50200
O/s Electricity Charges		1250	Building	12000 0
			(-) Depreciation	6000	114000
			Insurance Prepaid		300
			O/s Subscription		2500
			Stock of Stationary		700
			Cash and Bank		27050
			Investments		70000
		264750			264750

19. As of Advanced March 31, 2015, the following balances have been extracted from the books of the Indian Chartered Accountants Recreation Club and you are asked to prepare an Income and Expenditure Account for the year ended March 31, 2017, and a Balance Sheet as at that date.

Debit Balances		Credit Balances
	(Rs.)		(Rs.)
Purchases	24,660	Subscriptions	9,7110
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	5370
Fuel and Light	5,280	Grant from Institute	42,000
Misc. Expenses	4,050	(permanent)
Cash in hand	1,730	Income and Exp. A/c	1,380
Cash at bank	2,760	(2016)
Fixed Deposit	8,500
Sundry Debtors	2,250
Stationary	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, of the full year, the stock of Stationary consisted of Rs. 900 and March 31, 2017 Rs. 60 respectively. Provide depreciation Rs. 60 on fixtures and fittings, Rs. 390 on billiard table and Rs. 560 on furniture.

Ans:

Note – The credit side on the Trial Balance is short by 60 Rs. Thus, we will be required to open the Suspense Account in this case.

Note – The closing stock should be Rs. 960 instead of Rs. 900

Books of Indian Chartered Accountants Recreation Club

Restaurant Trading Account

Dr. Cr.

Particulars	Amount Rs	Particulars	Amount Rs
Opening Stock	1,170	Receipts from Dining Room	87,660
Purchases	24,660	Closing Stock	960
Dining Room Exp.	32,370
Profit from Restaurant	30,420
	88,620		88,620

Income and Expenditure Account

As on March 31, 2017

Dr. Cr.

Expenditure		Amount Rs	Income	Amount Rs
Rent		10,470	Subscriptions	9,450
Wages		18,690	Sundry Receipts	410
Repairs and Renewals		5,400	Interest on Fixed Deposits	270
Fuel and Light		5,280	Profit from Restaurant	30,420
Misc. Expenses		4,050	Billiards Receipts	7,300
Depreciation on
Fixtures and Fittings	60
Billiards Table	390
Furniture	560	1,010
Surplus (Excess of Income over Expenditure)		2,950
		47,850		47,850

Balance Sheet

As of March 31, 2017

Liabilities		Amount Rs	Assets		Amount Rs
Sundry Creditors		5,310	Cash in Hand		560
Grant from Institute		42,000	Cash at Bank		2,760
Suspense		60	Fixed Deposit		8,500
Capital Fund (Income and Exp. A/c as on Apr.01, 2016)	1,380		Sundry Debtors		2,250
Add: Surplus	2,950	4,330	China Glass, Cutlery and Linen		600
			Billiards Table	2,070
			Less: Depreciation	(390)	1,680
			Fixture and Fittings	870
			Less: Depreciation	(60)	810
			Furniture	4,140
			Less: Depreciation	(560)	3,580

			Club Premises		30,000
			Stock of Restaurant		960
		51,700			51,700

NCERT Solution of Class 12 Accountancy Part 1 Chapter 1 - Free PDF Download

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NCERT Solution Class 12 Accountancy Part 1 Chapter 1 - Free PDF Download

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NCERT Solutions for Class 12 Accountancy Partnership Accounts Chapter 1

Ch 1 of Accounts Class 12: Partnership Accounts

In this chapter, students begin their journey after finishing the fundamental concepts that they have learned in 11th grade. This chapter introduces students to everything that they need to know about Partnership Accounts. Ideally, it is recommended that students should learn this chapter with the help of a case study. This will allow the student to score better marks.

Marks Weightage of Class 12 Accounts Chapter 1

Chapter 1 of Accounts Class 12th falls under unit 1 of Accountancy. This unit is worth 12 marks. This might seem less to some students. However, the other units are also based on the knowledge that students will acquire in this chapter. This is why students should not underestimate this chapter.

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Important Topics to Be Covered:

Meaning of Non-Profit Organisations
Characteristics of Non-Profit Organisations
Format of Receipt and Payment Account of Non-Profit Organisations
Income and Expenditure Account of Non-Profit Organisations
Balance Sheet of Non-Profit Organisations

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NCERT Solutions for Class 12 Accountancy I Chapter 5

FAQs on NCERT Solutions for Class 12 Accountancy Chapter 1 - Accounting For Not For Profit Organisation

1. What is the Nature of Receipts and Payment Accounts?

Receipts and payment accounts contain bank and cash transactions summary.

2. What do you Mean by Income and Expenditure Account?

Income and expenditure account is considered to be an equivalent of profit and loss account. In this type of account, both surplus and deficits are calculated during the accounting period.

3. Are the Solutions Available for Free?

Yes, students can download the PDF containing the NCERT Solutions for free.

4. Define ‘Not-for-Profit’ Organizations.

Answer: Not-for-profit organizations can be defined as organizations that are established with the sole aim of providing various services to society without making any profits.

5. Which is the first chapter in Accountancy and how to study the chapter easily?

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6. Apart from Chapter 1, how many chapters are there in Class 12 Accountancy?

Apart from Chapter 1, Accountancy has two sections. Here, the first section has five chapters and the second has a total of six chapters. Vedantu provides NCERT Solutions for all these chapters. They can use these solutions to clarify their doubts and understand the concepts. The solutions are built in an easy language to simplify the concepts in a step by step explanation. Download the NCERT solutions now at the Vedantu website or use the Vedantu app for free of cost.

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These solutions are available on Vedantu's official website(vedantu.com) and mobile app free of cost.

8. Define ‘Not-for-Profit’ Organizations.

When the profit is used for a social cause and not shared with the owners, they are known as ‘Not-for-Profit’ Organizations. It is important for you to go through and practise all the questions given by Vedantu to attain well in the exams. Since these NCERT Solutions are carefully created by the subject experts, students need not worry about anything. Students can obtain the NCERT Solutions and they can even download the chapter’s PDF solutions free of cost. It is easily available on the official website of Vedantu or you can even download the app.

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NCERT Solutions for Class 12 Accountancy Chapter 1 - Accounting For Not For Profit Organisation

Class 12 Accountancy NCERT Solutions Chapter 1 - Accounting for Not for Profit Organisation

Access NCERT Solutions for Class 12 Accountancy Chapter- 1 Accounting For Not for Profit Organisation

NCERT Solution of Class 12 Accountancy Part 1 Chapter 1 - Free PDF Download

NCERT Solution Class 12 Accountancy Part 1 Chapter 1 - Free PDF Download

NCERT Solutions for Class 12 Accountancy Partnership Accounts Chapter 1

Ch 1 of Accounts Class 12: Partnership Accounts

Marks Weightage of Class 12 Accounts Chapter 1

Benefits of NCERT Solutions for Class 12 Accountancy Partnership Accounts Chapter 1 PDF

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