16.54 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS, oT "Particulars To Income & Expenditure A/c By Cash A/c (Given) (Given) 1,42,000 | By Subscription in Arrears A/c To Subscription in Advance (Closing balance) (balancing figure) 6,000} for 2014-15 for 2015-16 1,60,000 ILLUSTRATION 23. (HOTS) (Unpresented cheques, Balance as per Cash Book an Cash supplied by the secretary The Accountant of Diana Club furni for the year ended 31st March, 2016 : for use of the organisation) ishes you the following Receipts and Payments A To Balance b/d | By Honoraria to Secretary Cash and Bank 16,760 | By Miscellaneous Expenses To Subscriptions 21,420 | By Rates and Taxes To Sale of old newspapers 4,800 | By Ground man's Wages To Entertainment fees 8,540 | By Printing and Stationery To Bar Receipts 14,900 | By Telephone expenses To Bank Interest 460 | By Payment for Bar purchases To Short Term Credit by Secretary 40 | By Repairs By New Car (less sale proceeds of old car & 6,000) By Balance c/d Cash and Bank 66,920 1-4-2015 z (i) Subscription due 2,400 (ii) Cheques issued, but not presented for payment of 180 printing and stationery (iti) Club premises at cost 58,000 (iv) Depreciation on club premises provided so far 37,600 (v) Carat cost 24,380 (vi) Depreciation on car provided so far 20,580 (ii) Value of bar stock 1,420 -_oo TAXMANN®FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS vsount unpaid for bar purchases 115% p.a. on the car for the whole year. quired to prepare an Income and Expenditure Account of Diana Club for the year ending 7h, 2016 and Balance Sheet as on that date N 1,180 In the books of Diana Club INCOME AND EXPENDITURE ACCOUNT for the year ended 31-3-2016 16.55 860 siation is to be provided @ 5% p.a. on the written down value of the club premises and a ja to Secretary 9,600 | By Subscriptions (6) 20,980 eous Expenses 3,060 | By Bar Receipts (Sales) 14,900 and Taxes 2,520 | By Sales of old newspapers 4,800 yundman’s Wages 1,680 | By Entertainment fees 8,540 and Stationery* 940 | By Bank Interest 460 Expenses 4,780 | By Profit on Sale of Car 2,200 r Stock used (WN 1 and 2) 10,900 640 jation : Club Premises (3) 1,020 Car (4) 4,680 ofIncomeoverExpenditure| 12,060 51,880 51,880 BALANCE SHEET as at 31-3-2016 Fund : Club Premises (3) 58,000 (7) 43,600 Less: Acc. Depreciation _38,620| 19,380 + Surplus 12,060} 55,660 | Car (4) 31,200 for Bar Purchases 860 | Less : Acc, Depreciation 4,680} 26,520 Term Credit by 40 | Bar Stock 1,740 Subscription Due 1,960 Cash and Bank 6,960 56,560 56,560 ‘TAXMANN®16.56 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS *In the question, opening and closing cash and bank balances are as per , and therefore, there is no need for adjustment of cheques issued and not. payment for printing and stationery. Adjustment is neither required in th nor in the printing and stationery account. Working Notes : (1) Calculation of the amount of bar purchases during the year Payment for bar purchases Add : Outstanding on 31-3-2016 Less : Outstanding on 1-4-2015 Purchases during the year * (2) Calculation of bar stock used during the year Opening bar stock i Add : Purchases (1) Less : Closing bar stock (3) Depreciation on club premises Written down value on 1-4-2015 (58,000 — 37,600) Less : Depreciation for the year @ 5% p.a. Written down value on 31-3-2016 (4) Depreciation of Car ; Purchase price of new car (25,200 + 6,000) F okie Less : Depreciation for the year @ 15% p.a. Written down value on 31-3-2016 = (8) Calculation of Profit/Loss on sale of old car Sale proceeds from old car Less : WDV on date of sale (24,380 - 20,580) Profit on sale of old car (6) Subscriptions for the year Subscriptions received during the year Add : Outstanding at the end Less : Outstanding in the beginning (7) Calculation of opening capital fundFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.57 Balance Sheet as at 1-4-2015 58,000 Less : Acc. Depreciation _37,600| 20,400 1,180 | Car 24,380 Less: Acc. Depreciation _20,580| 3,800 Bar Stock 1,420 Subscription Due 2,400 Cash and Bank 16,760 44,780 \TION 24. (HOTS) (Entrance Donation, Incidental Commercial Activities) ing is the Receipts and Payments Account of Sydney Club for the year ended on 2016 : F 1,20,000 10,000| Creditors 15,20,000 3,850| Printing and Stationery 70.000 2,02,750) Postage 40,000 1,00,000) Telephones and Telex $2,000 58,000| Repairs and Maintenance 48,000 8,000) Glass and Table Linen 12,000 9,000| Crockery and Cutlery 14,000 Garden Upkeep 8,000 10,70,000| Membership Fees 4,000 5,10,000| Insurance 5,000 80,000| Electricity 28,000 * 1,02,000| Closing Balances : Cash 28,000 Bank 2,04,600 21,53,600' . 21,53,600 5,00,000 3,80,00016.58 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS Investment in 12% Government Securities Outstanding Subscription Prepaid Insurance ‘Sundry Creditors Subscription Received in Advance Entrance Donation Received pending membership Gratuity Fund The following adjustments are to be made while drawing up the Accounts : ; (a) Subscription received in advance as on 31st March, 2016 was % 18,000. i (b) Outstanding Subscription as on 31st March, 2016 was % 7,000. i (c) Outstanding Expenses are : Salaries : € 8,000 and Electricity : % 15,000. (d) 50% of the Entrance Donation was to be capitalised. There was no per ship as on 31st March, 2016. (e) The cost of assets sold net as on 1-4-2015 was % 10,000. ()) Depreciation is to be provided at the rate of 10% on assets. (g) A sum of 20,000 received in October 2015 as Entrance Donation from an. was to be refunded as he had not fulfilled the requisite membership qualifi The refund was made on 3-6-2016. (h) Purchases made during the year amounted to % 15,00,000. (i) The value of closing stock was ® 2,10,000. (i) The club as a matter of policy charges off to Income and Expenditure A purchases made on Account of crockery, cutlery, glass and linen in the chase. You are required to prepare an Income and Expenditure Account for the year er To Salaries Add ; Outstanding To Printing and Stationery To Postage ‘To Telephone and Telex ToRepairsand MaintenanceFINANCIAL STATEMENTS OF NOT FOR pROETT fi a 16.59 12,000| By Receipts from Swimmi, pier 14,000] By Receipts from Tennis Court 1,02,000 5, 000)By Deficit 30,250 4,000 5,000 1,000] 6,000 plectricity 28,000 ‘Add : Outstanding 15,000] 43,000 on Sale of Assets 2,000 Depreciation [W.N. (iv)] 49,000 F 21,46,000 BALANCE SHEET OF SYDNEY CLUB as on 31st March, 2016 Fixed Assets : Opening Balance 5,00,000) 90,000: Less : Sale 10,000} 30,250) 10,89,600| Less : Depreciation 49,000} 4,41,000 1,50,000| Stock 2,10,000 92,000] Investments 5,00,000 18,000] Subscription Outstanding 7,000 20,000] Interest Accrued 2,000 nding Salaries 8,000] Bank 2,04,600 standing Electricity Charges 15,000|Cash 28,000 13,92,600 [13,92,600. (@ Balance Sheet of Sydney Club as on Ist April, 2015 Fixed Subscription Received in Advance Stock eee Nance Donation Received Investments . 00, M Advance 1,00,000 | Subscription Outstanding 12,000 Stuity Fund 1,50,000 ——— faxmnNn? ee ee16.60 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS To Outstanding Subscription A/c (Beginning) To Income and Expenditure A/c (balancing figure) To Subscription Received in Adv. A/c By Subscription Received in 12,000| — Advance (Beginning) 1,94,750 | By Bank Alc i By Outstanding Subscription A/c 18,000| (Closing) 2,24,750 To Entrance Donation Donation Account Refundable A/c By Bank A/c To Income and Expenditure A/c 90,000 (50% of 1,80,000) To Capital Fund 90,000 (50% of 1,80,000) 2,00,000 (iv) Fixed Assets Account 5,00,000 | By Cash By Loss on Sale (10,000 By Depreciation (10% on — 4,90,000) By Balance c/d 5,00,000 (v) Calculation of Stock used Opening balance of Stock Add : Purchases Less : Closing balance of Stock ——————____—_ TAXMANN®FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.61 (vi) Sundry Creditors Account mE a 15,20,000 | By Balance bid eld (balancing figure) 92,000] By Purchases 15,00,000 16,12,000 [1612000 RATION 25. (Preparation of Income and Expenditure Account and Balance vet when Trial Balance and other information is given) the following Trial Balance and accompanying notes for adjustments, prepare Income nditure Account for the year ended 31st March, 2016 and the Balance Sheet as on date of Bhartiya Gymkhana Club : Dr.(@) | Cr (2) Club Buildings 37,400 2,280 3,520 2,000 ; Cutlery, etc—purchased during the year 1,000 ing and Stationery 225 Hire of Hall 3,670 Rent 6,700 Annual Subscription 12,150 Entertainment Cost 345 Billiard Room Receipts 3,845 ard Room 10,400 Billiard Room Expenses 2,135 Profit on Sale of Wine, Beer, Cigars, etc. 1,200 Arrears of Subscription—1-4-2015 setae Honorarium : 1,500 Sale of tickets for Annual Dinner 1,600 Ainual Dinner Expenses ABR 2,700 8,500 600 Repairing, Cleaning and Washing aa on and Magazines = ‘on Bank Deposits Charges cu otarAXMANN®ies of Staff (2,700 + 200) ing, Cleaning etc. papers and Magazines 180 - 95) 228 528 1,870 1,700 2,135 1,500 1,875 2,900 350 85 20 4,326 15,929 30,255 Bhartiya Gymkhana Club INCOME AND EXPENDITURE ACCOUNT Serene SI 3-2016 By Rent (6,700 + 500) By Annual Subscription (12,150 - 1,125 - 760) By Billiard Room Receipts FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS By Profit on Sale of Wine, Beer, Cigars etc. By Sale of tickets for Annual Dinner By Donation 50% of (8,500 — 3,600) By Interest on Bank Deposits 16.63 1,200 1,600 2,450 25 as on 31. BALANCE SHEET OF SYDNEY CLUB /-3-2016 Club Buildings 15,929 Less : Depreciation 1,870 35,530 225 Furniture and Fixture 3,520 2,450| 51,544| Less: Depreciation 528| 2,992 3,600 Library Books 2,280 2,995 605| Less : Depreciation 228| 2,052 3,135 | Glass, Cutlery ete. 2,000 200 | Additions during the year _ 1,000 760 3,000 Less : Depreciation 1,700} 1,300 Billiard Room 10,400 ‘TAXMANN®16.64 _ FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS Stock of Printing and Stationery Stock of Wine, Beer, Cigars etc. Rent Receivable Cash at Bank Cash in Hand 56,244 ILLUSTRATION 26. (Preparation of Receipts and Payments Account, Incon Expenditure Account and Balance Sheet) The following balances are obtained from the books of Kanpur Cricket Club as 0 March 2015, and 31st March, 2016 : 31-3-2015 31. z Building 80,000 Furniture 40,000 Advance Subscription 1,500 Arrears of Subscription 3,000 Prepaid Expenses 800 Outstanding Expenses 3,000 Sports Equipment 24,000 Investments ts Books 15,000 Cash 16,000 Consider the following information relevant to the year 2015-16 : (i) Depreciation provided for the year z Buildings 4,500 Furniture 3,400 Sports Equipment mon Books 1,800 (ii) Some old furniture standing in the books for ® April, 2015 % 4,000 on the same date. For 6,000 on Ist Apri, 2015 (ii) The club had 300 members on 31st March, 2016 as per the Revister of fresh members were admitted during the (5 = Ooniene ng the year but 10 members left the (iv) Subscription payable—& 15 per month, TAM ANNSFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.65 received for & 5,000 has been capitalised. able expenses were paid during the year, ital Fund as on 31-3-2015 was @ 1,74,300. re required to show the Receipts and Payments Account, the Income and Expenditure for the year ended 31st March, 2016 and Balance Sheet. [[Link]. (Hons.), Delhi 1997 and 2007, Adapted] RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2016 Cr os By Building A/c (W.N. 2) By Sports Equipment A/c (W.N. 3) 4,000 | By Investments A/c 12,000 5,000 | By Books A/c (W.N. 4) 3,000 By Expenses A/c (balancing figure) 32,300 By Balance c/d 17,100 77,400 77,400, INCOME AND EXPENDITURE ACCOUNT for the year ended 31st March, 2016 rn By Subscription "Add : Outstanding at the (310 x & 15 x 6) 27,900 end 1,200 (300 x % 15 x 6) 27,000. 54,900 33,500 _ Add:Prepaidin the beg. _ 800 34,300 __ less: Outstandingin the beginning 3,000 _ less: Prepaid at theend 1,000] 30,300 Loss on Sale of Furniture __ {6,000 - 4,000) 2,000 _ ToDepreciation _ On Building 4,500 _ On Furniture 3,400 ©nSports Equipment 5,400 On Books 15,100 1,800 TAXMANN®16.66 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS To Excess of Income over Expenditure 7,500 54,900 BALANCE SHEET as at 31. Capital Fund Add : Donation 5,000 Furniture Add : Excess of Income ‘Sports Equipment over Expenditure 7,500 | 1,86,800 Investments Advance Subscription 1,000 | Books Outstanding Expenses 1,200 | Arrears of Subscriptions Prepaid Expenses Cash 1,89,000 Working Notes : Z Dr. (1) Subscription Account oT z To Arrears of Subscription A/c 3,000 (in the beginning) To Income and Expenditure A/c 54,900 310 x 215 x 6 = 27,900 300 x & 15 x 6 = 27,000, To Advance Subscriptions A/c 1,000 (at the end) oa See Dr. al To Balance b/d To Cash Ale (Purchase—bal. fig.)vended 31st March, 2016 : » will you deal with the given items while preparing the final accounts FINANCIAL STATEMENTS OF NOT: F NOT-FOR-PROFIT ORGANISATIONS 16.67 (3) Sports Equipment Account Cr. if z 24,000 | By Depreciation A/c 5,400 h alc (Purchase—bal. fig.) 3,000 | By Balance c/d 21,600 000, 27,000 (4) Books Account Cr. ® & 15,000 | By Depreciation A/c 1,800 sh Alc (Purchase—bal. fig.) 3,000 | By Balance c/d 16,200 18,000 18,000 (5) Furniture Account ia 7 2 40,000 | By Depreciation 3,400 By Cash (Sale Proceeds) 4,000 By Loss on Sale of Furniture 2,000 By Balance c/d 30,600 40,000 [_40,000_ TRATION 27. (Debtors for Provisions and Stock of Provisions) ofa club for the 12,000 46,500 4,000 5,000 16,000 8,000 litional Info 5 ents made to creditors for provisio? Mredit purchases. Goods were sold to mem| ns : © 1,40, 20% of total bers at a profit of 10% on sales. 000. Collection from credit members sales. Cash purchases were 25% | |‘To Balance bid To Credits for Provisions Ale (Credit Purchases) To Cash A/c (Cash Purchases) Less : Profit By Balance c/d Cash Sales = 2 x 1,16,000 = % 29,000; Total Sales TAXMANN® -FINANCIAL OF NOT-FOR-PROFIT ORGANISATIONS RATION 28. (HOTS) (Restaurant Trading Account, Preparation of Receipts ‘ ee etter ated Expenditure Aceount arid Balmrson iia balances have been extracted from the books of XYZ Club for the year ended iture as on 31st March, 2015 :% 8,400, Additions to Furniture during the year © 5,400, hard Table and other accessories as on 31st March, 2015 % 8,900, China Glass Cutlery nd Linen as on 31st March, 2015 8 2,500, Restaurant receipts during the year :% 3,61,600, Restaurant stock as on 31st March, 2015 3,900, Receipts from Billiard room during the year:% 25,600, Subscriptions received during the year 31,500, Intereston Deposit received "uring the year : & 1,500, Secretary's honorarium : % 30,000, Purchases for restaurant : %2,07,800, Rent and Rates : & 34,900, Wages (restaurant % 50,000) € 92,300, Repairs and Renewals : % 17,900, Fuel : & 17,700, Lighting : 2,200, Sundry Expenses : © 13,400, Cash in Hand as on 31st March, 2015 : ® 1,350, Bank Balances as on 31st March, 2015 + 29,150, Bank Deposit at 10% as on 31st March, 2015 : ® 30,000. The payment for purchases including % 3,000 for the year ending on 31st March, 2015. | Restaurant stock on 31st March, 2016 : % 4,500. Included in the subscriptions received were 4,800 for the previous year and ® 1,200 for the year ending on 31st March, 2017. Subscriptions outstanding on 31st March, 2016 were & 5,000. Depreciation should be provided as follows : China Glass and Cutlery at 20%, Furniture 10% and Billiard Table and Accessories 13%. The cost of the boarding expenses of the staff is estimated at & 27,500 of which X 20,000 is to be charged to the restaurant. Prepare the Receipts and Payments Account, Income and Expenditure Account and the Balance Sheet showing the working of the restaurant separately. Cash in hand on March 31, 2016 : 2,600. SOLUTION : XYZ Club RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2016 CnFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS RESTAURANT TRADING ACCOUNT for the year ended 31st March, 2016 To Wages To Notional Boarding Expenses _ of Restaurant Si a mes To FuelFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS BALANCE SHEET as at 31st March, 2016 Furniture 8,400 Additions during the year _5,400 eee 13,800 subscription in Advance Less : Depreciation 1,380| 12,420 Billiards Table 8,900 Less : Depreciation 1,335| 7,565 China Glass and Cutlery 2,500 Less : Depreciation 500} 2,000 Restaurant Stock 4,500 Accrued Interest on Deposits 1,500 Subscriptions in Arrears 5,000 Cash at Bank 6,500 Cash in Hand 2,600 Bank Deposit16.72 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS PREPARATION OF RECEIPTS AND PAYMENTS ACcoy > FROM INCOME AND EXPENDITURE ACCOUNT ANp OTHER INFORMATION The following steps are to be followed for preparing a Receipts and p. Account from an Income and Expenditure Account ‘ayments Step 1: Open a Receipts and Payments Account. Opening balance of ¢ and bank is to be written on the receipt side and opening bal, of bank overdraft is to be written on the credit side. If the Ope! balance of cash or bank is not given, leave space for that, ‘ash lance ning Step2: Ascertain the revenue receipts received during the current year by analyzing the items of income as given in the income side of the Income and Expenditure Account. Write those items of income in which no adjustments is required, directly on the receipt side of the Receipts and Payments Account. Prepare statement or open ledger accounts or form equations in respect of those items of income in which adjustment is required. Write the adjusted amounts on the receipt side of the Receipts and Payments Account. Step3: Ascertain the revenue payments made during the current year by analysing the items of expenditure as given in the expenditure side of the Income and Expenditure Account. Write those items of expenditure in which no adjustment is required on the payments side of the Receipts and Payments Account. Prepare statement of open ledger accounts or form equations in respect of those items of expenditure in which adjustment is required. Write the adjusted amounts on the payment side of the Receipts and Payments Account. Step4: Ascertain the capital receipts and capital expenditure from the additional information and Balance Sheet (if given). Account of these items may be prepared to calculate the capital receipts and capital expenditure. Write the capital receipts on the receipt side and capital expenditure on the payment side of the Receipts 24 Payments Account. Step5: Write the closing balances of cash and bank on the payment side if given). Closing balance of bank overdraftis to be written on the recei?! side of the Receipts and Payments Account. If closing balance is not given it will be calculated by balancing the Receipts and Paymen’* Account. If both the opening and closing balances of cash and b: ‘s are given, the total of the receipt side and payment side should b° equal. If only the opening balances of cash and bank are ee then the difference between the receipt side and payment side We represent closing balances of cash and bank. If the closing balance of cash and bank are given, the difference between the receiP' S\° and payment side will represent opening balances of cash and b*" aa aNfINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.73 ON 29. BE pine information, calculate the amount of subscriptions received during As at 2015 | 31-3-2016 z 8,000 1,500 AND EXPENDITURE ACCOUNT (AN EXTRACT) for the year ended 31-3-201616.74 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS x + 8,000 ~ 1,500 + 1,200 - 7,000 = € 60,000 x = 60,000 - 8,000 + 1,500 - 1,200 + 7,000 = € 59,300. ILLUSTRATION 30. (Preparation of Receipts and Payments Account) From the following particulars relating is Mother Teresa Charitable Trust Hosp Receipts and Payments Account for the year ended 31st March, 2016 and a Ba as on that date : ital prepard lance Shee INCOME AND EXPENDITURE ACCOUNT for the year ended 31st March, 2016 Expenditure g To Medicines Used 1,49,900 | By Subscription To Honorarium to Doctors 60,000 | By Donations To Salaries 1,37,500 | By Interest on Investments in Bonds To Printing and Stationery 5,500)|(0s eae To Electricity and Water 2,375 | By Proceeds from Charity To Rent 30,000} Show 57,250 To Depreciation on Furniture 10,500 | Less : Expenses 3,900} 53,350 To Depreciation on Equipment 16,250 To Surplus 23,825 4,35,850 Additional Information : (i) Subscription due (ii) Subscription received in advance (iii) Electricity and water outstanding (iv) Stock of medicines (v) Estimated value of equipment (vi) Furniture cost less depreciation (vit) Land Interest accrued on investment in 11% Bonds costing %5,12,500 (face value € 5,00,000) . Cash in Hand Cash at BankFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.75 soLUTION : Mother Teresa Charitable Trust Hospital RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2016 Ce xs = ee TpBalance b/d By Purchase of Medicines (W.N. 3) | 1,59,550 Fah 1,700 By Honorarium to Doctors 60,000 ae 45,000 | 46,700 | By Salaries 1,37,500 qp Subscriptions (W.N. 2) 2,79,980 | By Printing and Stationery 5,500 TpDonations 47,500 | By Electricity and Water (W.N. 4) 2,260 Jolnterest on Investments 55,000 | By Rent 30,000 ToProceeds from Charity Show 57,250 | By Purchase of Equipment (W.N. 5)| 27,750 By Land 50,000 By Charity Show Expenses 3,900 By Balance c/d Cash 1,800 Bank (balancing fig.) 3,170 | _ 9,970 4,86,430, BALANCE SHEET as at 31st March, 2016 Capital Fund Opening Balance (W.N. 1) 7,74,870 ‘Surplus 7,98,69516.76 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS Working Notes : 1. Calculation of opening capital fund : Balance Sheet as at 31st March, 2015 7,74,870 | Furniture ; ‘Subscription Received in Advance 320 | Equipment aint Electricityand Water Bill Outstanding 460 | Investment in 11% Bonds (face value % 5,00,000) Interest Accrued on Investment Stock of Medicine Subscriptions Due Cash at Bank 45,000 Cash in Hand 1,700 7,75,650] * 7,55,650 2. Calculation of subscriptions received : Dr Subscriptions Account Cr aa Paricdars «| To Subscriptions Due A/c 600 | By Subscriptions in Advance A/c 320 (in the beginning) (in the beginning) To Income and Expenditure Ale _| 2,80,000 | By Cash (balancing figure) 2,793,980 To Subscriptions in Advance 500 | By Subscriptions Due (at the end) | __800. 2,81,100 [2.81100 3. Calculation of payment for purchase of medicines: é Medicines used during the year Add : Closing stock of medicinesFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.77 calculation of payment for purchase of equipment : < Equipment at the end 69,500 dd : Depreciation 16,250 85,750 ess: Value of Equipment in the beginning [LUSTRATION 31. (Preparation of Receipts and Payments Account) rom the following Income and Expenditure Account of Mayur Club for the year ended 31st pecember, 2009, prepare Receipts and Payments Account for the year ended 31st December, 2009 and a Balance Sheet as on that date : INCOME AND EXPENDITURE ACCOUNT for the year ended 31-12-2009 By Subscriptions To Stationery By Donations To Postage & Telephone By Billiard Room Collections By Entrance Fees By Interest from IFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATION Expenses Outstanding : Stationery Telephone Electricitya FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS BALANCE SHEET as at 31st December, 2009 16.79 2,27,000 20,000 1,800 2,48,800 Fixed Assets Investments 54,000 Add : Purchased during the year 40,000 Subscriptions Outstanding Cash at Bank 94,000 10,000 80,800 and Expenditure A/c ptions in Advance A/c By Cash (balancing figures) By Subscriptions Outstanding A/c 12,000 1,60,000 10,000 By Depreciation A/c By Balance c/d “Fixed Assets Investments Subscriptions Outstanding Cash at Bank16.80 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS ILLUSTRATION 32. (Preparation of Receipts and Payments Account) Rock City Sports Club gives you the following information : INCOME AND EXPENDITURE ACCOUNT for the year ended on 31st March, 2016 C7 To Coach Remuneration 9,000 | By Subscription To Staff Salaries 12,000 | By Bar : Receipts 12,000 To Rent of Ground 6,000 Less : Expenses 10,000 To Repairs 6,500 | By Sale of Used Kits banal To Sundry Expenses 3,500 | By Rent of Hall To Ground Maintenance 9,000 To Depreciation on Furniture 1,500 To Excess of Income over Expenditure 12,500 60,000. BALANCE SHEET as at 31st March, 2015 and 31st March, 2016 Capital Fund Furniture Subscription Received Outstanding in Advance 4,000| 3,000) Subscriptions Sundry Expenses 1,500| 1,000 | Cash in Hand Staff Salaries 2,000| 3,000 | Fixed Deposit Rent of Ground 3,000| 2,000 | Cash at Bank 54,500 | 71,500 CC Staff Salaries, Sundry Expenses and Ground Rent due in March, 2015 had been paid the year ended on 31.3.2016. Subscription received in advance is in respect of the su year. Subscription due in March, 2015 received in full before March, 2016. The in capital was due to the inclusion of the entrance fee of % 6,000 during the year 31,3.2016 in addition to the surplus earned. Prepare the Receipts and Payments of Rock City Sports Club for the year ended on 31st March, 2016.RECEIPTS AND PAYMENTS ACCOUNT FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.81 for the year ended on 31st March, 2016 HEGRE: By Coach Remuneration By Staff Salaries 5,000 Expenses To Subscriptions Less : Due at the end Income 50,000 ‘Add: Outstanding in the 6,000 Add : Due in the beg. beg. Advance at theend 3,000 By Rent of Ground 59,000 Less : Due at the end less: Outstanding at the 8,000 end Advanceinthebeginning 4,000] 47,000 Add : Due in the beg. To Bar Receipts 12,000 | By Repairs To Sale of Used Kits 2,000 | By Sundry Expenses To Rent of Hall 6,000| Expense To Entrance Fees 6,000| Less : Due at the end Add : Due in the beg. By Ground Maintenance By Bar Expenses By Fixed Deposit By Balance c/d. Cash Bank 78,000 4,000 3,500 1,000 2,500 1,500 4,000 10,000 11,000 7,000 6,500 4,000 9,000 10,000 7,500 14,000 78,000 arch, 2014 : USTRATION 33. (Preparation of Receipts and Payments Account) ing is the Income and Expenditure Account of C.P. Club for the year ending 31st c 77,750 | Subscription 6,250 | Donations 4,000 | Govt. Grant 23,500 | Interest on Fixed Deposit 18,000 TAXMANN®eR ee 16.82 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS L Expenditure x Sports Expenses 9,000 Pool Expenses 10,000 Affiliation Fee 2,500 Electricity 16,250 Billiard Room Expenses 6,250 Magazines 7,000 Audit fee 1,250 Depreciation on : Equipment 5,000 Building 12,500 Furniture 2,250 Surplus 90,000 2,91,500 The above account is prepared after considering the information given below /— Particulars nee He Be Sports Ground 5,00,000 Sports Equipment 30,000 Furniture 25,000 10% Fixed Deposit 40,000 Savings Bank Account oe Subscription Due 25,000 Subscription received in advance 15,000 Audit fee due 1,000 Affiliation fee paid in advance pe Cash in Hand 6,250 You are required to prepare : (@ Receipts and Payments Alc for the year ending March 31, 2014; and (ii) Balance Sheet as at 31-3-2014. Show all workings. [[Link].(H.), D9 LUTION : “rppalance b/d ‘Jo Subscriptions ia Add : Outstanding of previous year __ 25,000 2,50,000 less : Outstanding ofcurrent year 10,000 2,40,000 ‘Add : Received in advance in current year for next year 5,000 2,45,000 15,000 C.P. Club RECEIPTS AND PAYMENTS ACCOUNT for the year ending 31st March, 2014 2,30,000 37,500 25,000 4,000 94,750 By Postage By Sundry Expenses By Repairs By Sports Expenses By Pool Expenses By Affiliation Fee 2,500 Add : Paid in advance in the current year for next year 1,250 Bp Piecuicity Cnantes! °F By Billiard Room Expenses By Magazines By Audit Fee 1,250 Add : Outstanding for last year 1,000 2,250 Less ; Outstanding in the current year 1,250 By Equipment Closing balance 45,000 Add : Depreciation 5,000 50,000 Less Opening balance _ 30,000 By Building Closing balance 5,50,000 12,500 ‘Add : Depreciation FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 5,62,500 16.83 3,750 16,250 6,250 7,000 1,000 20,00016.84 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.85 INCOME AND EXPENDITURE ACCOUNT for the year ended on 31st March, 2015 By Subscriptions 10,800 | By Entrance Fees 8,000 600 | By Profit on Sale of Sundry Assets 1,200 720 | By Interest on 5% Investments 600 By Surplus on Publication of 1,200) — Brochure Income 28,000 15,750 | Less : Expenses 23,500| 4,500 1,200 | By Other Incomes 225 9,600 epreciation on Sundry Assets at 10% of book value at end of year 4,800 f Surplus over Expenditure of 17,855 86,525 86,525 As on 31-3-14 As on 31-3-15 z z Sundry assets (including sports materials) 44,000 ? Bank Balance 4,800 ? _ Subscription in arrears 4,750 3,500 Subscriptions received in advance 1,400 2,600 ; 12,000 12,000 600 4,200 900 1,800 Nil 600 78016.86 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS (h) The club was admitted as a member of the All India Lawn Tennis Federation when it paid subscription till 30-9-2015 (i) Advertisement charges on brochure—yet to be collected % 430. (j)_A fixed deposit of % 25,000 was made on 31st March, 2015. Prepare the Receipts and Payments Account for the year. fo be Ba March, are Sheet as on that date. SOLUTION = To Balance b/d By Salaries (24,000 + 600- 1,200) _| By Rent (10,800 + 900 - 1,800) To Subscriptions (WN. 2) To Entrance Fees By Taxes (600 + 0 - 600) To Brochure Receipts (28,000-450) To Sale of Sundry Assets (4,000 + 1,200) To Interest on Investments To Other Incomes (9,600 + 780-320) To Prize Fund Receipts (W.N. 4) By Affiliation Fee (1,200 x 2)FINANCIAL STATEMENTS OF No: T-FOR-PROFIT ORGANISATIONS 16.87 < Assets 1,800 | Prepaid Affiliation Fee 600) (2,400 - 1,200) 1,200 320 | Advertisement charges receivable 450 Interest Accrued on Investments 2,950! (600 - 300) 300 Cash at Bank ee 86,445 86,445 (1) Balance Sheet as at 31-3-2014 i ee = Assets tal Fund (balancing figure) 55,870 Fund 4,600 ‘iption Received in Advance 1,400 s Outstanding : (600 + 900 + 780) Outstanding for purchase of 2,280 1,400 Sundry Assets (including sports materials) 5% Investments Subscription in Arrears Bank Balance 65,550 44,000 12,000 4,750 4,300 (2) Subscript ‘ions Account By O/S Subscription A/c (End) z 4,750 | By Subscription in Advance A/e 72,000} (Beginning) 1,400 2,600 | By Cash A/c (balancing figure) 74,450 By Bank (Sale proceeds) (4,000 + 1,200) By Depreciation A/c By Balance cld (4,800 x 100/10 ~ 4,800)16.88 Dr. FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS (4) Prize Fund Account Particulars z Parrtculars To Bank A/c (balancing figure) (Prizes awarded) By Balance c/d By Balance b/d 4,150 | By Bank A/c 3,250 7,400 PREPARATION OF OPENING AND CLOSING BALANc SHEETS WHEN RECEIPTS AND PAYMENTS ACCOUNT, INCOME AND EXPENDITURE ACCOUNT AND ADDITIONAL INFOR. MATION ARE GIVEN : The following steps are to be followed for preparing opening and closing Balance Sheets when Receipts and Payments Account and Income and Expenditure Account are given : Step 1: Step2: Step3: Draw proforma of Balance Sheet in the beginning and that of Balance Sheet at the end of the year. F Show opening balances of cash and bank, as given on the receipt side of the Receipts and Payments Account, on the asset side of the opening Balance Sheet. Similarly, closing balances of cash and bank, as given on the payments side of the Receipts and Payments Account, on the asset side of the closing Balance Sheet. Bank overdraft is to be shown on the liability side in the opening or closing Balance Sheet as the case may be. Compare the items on the receipt side of the Receipts and Payments Account one by one with the items on the income side of the Income and Expenditure Account. For example, if Entrance Fee is shown on the receipt side of the Receipts and Payments as & 1,000 and it is shown on the income side of the Income and Expenditure Account as % 500 it means that % 500 ( % 1,000 — 500) has been capitalised. Therefore, Entrance Fee % 500 will be shown on liability side of the closing Balance Sheet by way of addition '0 the Capital Fund. If the amount of a certain item is same in Receipts and Payments Account and Income and i Account, then there may not be any need of writing something regarding that item in the opening or closing Balance Sheet unless : some other information is given in the question regarding that se reeeennnnecnnnn——en TAXMANN® eeFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.89 : Compare the items on the payments side of the Receipts and Payments "Account one by one with the items on the expenditure side of the Income and Expenditure Account. For example, if salaries paid is shown as € 20,000 in the Receipts and Payments Account and salaries expenseis shown as¥ 24,000 in the Income and Expenditure Account, it means that salaries outstanding is = 4,000 which will be shown on the liability side of the closing Balance Sheet. Similarly, if the payment side shows purchase of some fixed asset, it will be shown on the asset side of the closing Balance Sheet. ; Show the opening balance of assets and liabilities as given in the additional information in the opening Balance Sheet and Calculate opening balance of capital fund as balancing figure. 6: Show the opening balances of fixed assets, investments and capital fund in the closing Balance Sheet. Also show the fixed assets and investments purchased during the year. Show the fixed assets after deducting the book value of the assets sold and depreciation. Add surplus to the capital fund or deduct deficit from the capital fund as the case may be. Now complete the closing Balance Sheet. TRATION 35. (Preparation of opening and closing balance sheets only) following are the receipts and payments account and income and expenditure account imar Club for the year ended 31st March, 2016. RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31-3-2016 Ce bid i By Insurance scriptions (including for By Rates and Taxes 1,400 114-15 & 1,500) 17,000 | By Library Books (on 31-3-2016) 2,500 ile of old newspapers 120 | By Creditors of last year 1,300 nt of Library Hall (including By Postage 100 700 for 2014-15) 2,080 | By Repairs 500 linment Show 6,000 | By Printing and Stationery 800 le of old furniture (on By Electric Installation Expenditure 9,000 15) 300 | By Sundry Expenses (including outstanding) By Balance c/d 38,300 TAXMANN®16.90 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS INCOME AND EXPENDITURE ACCOUNT To Rates and Taxes To Insurance To Repairs To Printing and Stationery To Sundry Expenses To Postage To Depreciation : On Building @ 5% On Library Books @ 10% On Furniture @ 5% To Loss on Sale of Furniture To Surplus Prepare Balance Sheets of the Club as on 31-3-2015 and 31-3-2016, SOLUTION : BALANCE SHEET as at 31-3-2015 Capital Fund (balancing figure) Buildings (700 x 100/5) Creditors Furniture (500 x 100/5 + Sundry Expenses Outstanding Library Books (3,370 x (4,300 - 1,900) Capital Fund Opening balance Add : SurplusFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.91 Less : Sold (book value) 350 10,000 Less : Depreciation 500} 9,500 Library Books 33,700 Add : Purchase 2,500 36,200 Less : Depreciation (10% on 33,700) 3,370| 32,830 Electric Installation 9,000 Insurance Prepaid (1,000 - 650) 350 Rent of Library Hall Receivable (WN. 1) 750 Subscriptions Receivable (W.N. 2) 2,200 Cash in Hand 12,600 80,530 (1) Rent of Library Hall Account A) eee ee ToRent Receivable A/c 700 | By Advance Rent A/c _ ToIncome and Expenditure A/c 2,130 | By Cash A/c 2,080 To Advance Rent A/c By Rent Receivable A/c 750 =| (balancing fig.) 2,830 (2) Subscriptions Account By Subscriptions in Advance A/c ai Tolncome and Expenditure A/c 17,700 | By Cash Ale 17,000 ‘ToSubscriptions in Advance A/c — | By Subscriptions Receivable A/c (balancing fig.) 2.200 19,200 |_19,200_ TAXMANN®16.92 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS ~ ILLUSTRATION 36. (Preparation of opening and closing The following particulars relate to Ganeev Sports Club : INCOME AND EXPENDITURE ) for the year ended 31st March, 2011 Dr. To Secretary’s Salary To Printing and Stationery To Advertising _ To Audit Fees To Fire Insurance F To Depreciation : an Sports Equipments Furniture To Surplus To Balance b/d To Entrance Fee 2010 2011 To Subscriptions : 2010 2011 2012 To Rent received — To Interest received The assets as at 31st March, Equipment? 2,50,000and Fu date were & 8,000. Subscriptio for printing and Stationery on Prepare the Balance Sheets as oFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.93 BALANCE SHEET as at 31-3-2010 Se i ; 42,000 editors for Printing and 5,000 | Subscriptions in Arrear 8,000 Entrance Fee Outstanding 10,000 copital Fund (balancing figure) 7,83,000 | Sports Equipment 2,50,000 ‘ Furniture and Fixture 40,000 Grounds and Pavilion 4,40,000 7,90,000 BALANCE SHEET -3-2011 Subscriptions in Arrear (WN. 1) 5,000} 2010 2,000 Creditors for Printingand Stationery 2011 4,000] 6,000 as 1,000 | Entrance Fee Outstanding lit Fee Outstanding 5,000 (10,000 + 1,05,000 - 1,10,000) 5,000 Capi Rent Outstanding | Opening balance 7,83,000 (28,000 - 24,000) 4,000 1,38,000 | 9,21,000 | Accrued Interest s (2,00,000 x 12/100 x 6/12 - 6,000) 6,000 Prepaid Fire Insurance (12,000 - 10,000) 2,000 12% Investments 2,00,000 Sports Equipment 2,50,000 Less : Depreciation 90,000 | 1,60,000 Furniture & Fixtures 40,000 ‘Addition during the year _ 20,000 60,000 Less : Depreciation 5,000 | 55,000 Grounds and Pavilion 4,40,000 9,36,000 [236.000 tn ————8,000 To Income and Expenditure A/c | 1,56,000 | By Cash Ale To Advance Subscriptions A/c 4,000 | By Subscriptions in Arrear A/c (balancing fig.) 1,68,000, aind) bt tad @ Creditors for Printing and Stationery To Cash Alc To Balance c/d ILLUSTRATION 37 : Following are the Receipts and Payments and Income and Expenditure Club for the year ending 31st March, 2016: RECEIPTS AND PAYMENTS ACCOUNT for the year ending 31st March, 2016 Balance b/d Subscriptions 2014-15 2015-16 2016-17 Legacy Donation for Library Match Fund Sale of FurnitureFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.95 INCOME AND EXPENDITURE ACCOUNT for the year ending 31st March, 2016 Subscriptions 1,800 2,000 300 350 75% of Total Stock in Hand during the year 2,010 "80% of Total Stock in Hand 1,500 of Income over Expenditure 1,240 10,400 Information : (a) Subscription outstanding on 31-03-2015 % 550 estimated at = 500 (b) Subscriptions received in advance as on April 1, 2015 Nil “(¢) Furniture on 31-03-2015 % 4,000 (a) Crockery on 31-03-2016 = 2,500 fou are required to prepare Balance Sheets as on 1st April, 2015 and 31st March, 2016: BALANCE SHEET as at 31st March, 2015 Cash in Hand Subscriptions Outstanding (550-50) 500 Sports Material 680 Crockery 1,500 Furniture 4,000—————— TAXMANN®FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.97 ppePARATION OF CORRECT RECEIPTS AND PAYMENT ,ecoUNT, INCOME AND EXPENDITURE ACCOUNT AND NCE SHEET FROM INCORRECT RECEIPTS AND PAYMENTS COUNT AND OTHER INFORMATION a ysTRATION 38. the Receipts and Payment Account of Trustwell Club prepared on 31st March, 2016 is as plows: 4 Cr "Receipts z Pam Mp Balance bid 450 | By Expenses (including payment qpAnnual Income from for sports material & 2,700) 6,300 ‘Subscription % 4,590 By Loss on Sale of Furniture ‘Add : Outstanding of (Cost price % 450) 180 last year received By Balance c/d 90,480 this year 180 4,770 __ less: Prepaid of last year %90| 4,680 To Other Fees 1,800 TeDonation for Building 90,000 96,930. Additional Information : eel Club had balances as on 1-4-2015 : Furniture : % 1,800; Investment at 5% E 000; Sports material € 6,660; Balances as on 31-3-2016 : Subscriptions Receivable 2270: = ™ 70; Subscriptions received in advance :& 90; Stock of sports material : = 1,800. Do . E Papo asree with Receipts and Payment Account ? If not, prepare correct Receipts and tie ints Account and Income and Expenditure Account for the year ended 31st March, ~~ °and Balance Sheet as on that date. SOLUTION ; Trustwell Club Dr RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2016 an ae _Pamcnis a By Expenses (6,300 - 2,700) Othe, tion (W.N. 1) 4,500 | By Sports Materials — 1,800 | By Balance c/d (bal. fig.) ‘TAXMANN® —————————————____Furniture sold 5% Investment Accrued Interest on Investment Sports Material To Subscription Outstanding A/c To Income’s Expenditure A/c ‘To Advance Subscription A/cFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS —-16.99 (2) Balance Sheet as at 31st March, 2011 z Assets 90 | Cash in hand 450 36,000 | Subscriptions Outstanding 180 Sports Material 6,660 5% Investment 27,000 Furniture 1,800 36,090 36,090, LLANEOUS ILLUSTRATIONS ON 39. (Preparation of Receipts and Payments Account, Income and nditure Account and Balance Sheet) had the following figures in the books on 31st March, 2016, the end of the first year club. Prepare Receipts and Payments Account, Income and Expenditure Account for ended 31st March, 2016 and Balance Sheet as on that date : of City Club gave the following information about the receipts and payments for the year ended 31st March, 2016 : Rates and Taxes Printing and Stationery Sundry Expenses Wages Fair Expenses Honorarium to Secretary 11,000 Bar Purchases (Payments) 17,310 Repairs 960 New Car (less proceeds of old car = 9,000) 37,800 1-4-2015 | 31-3-2016 z ¢ Nil16.100 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS Cheques issued for Sundry Expenses not presented to the bank (entry has been duly made in the Cash-book) Pee Subscriptions Due 3,600 Premises at Cost 87,000 Provision for Depreciation on Premises 56,400 Car at Cost 36,570 Accumulated Depreciation on Car 30,870 Bar Stock 2,130 Creditors for Bar Purchases 1,770 Annual Honorarium to Secretary is € 12,000. Depreciation on Premises is to be pro 5% on written down value. Depreciation on new Car is to be provided at 20%, Youare required to prepare the Receipts and Payments Account and Incomeand. Account for the year ended 31-3-2016. (IPCC, Nov. 2011, Ac SOLUTION: City Club RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2016 To Opening Balances: Cash in Hand Bank Balance To Subscriptions To Fair Receipts To Variety Show Receipts (Net) To Interest To Bar Collections To Sale Proceeds to old CarFINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS INCOME AND EXPENDITURE ACCOUNT as at 31st March, 2016 ToRent Depreciation on = Premises @ 5% of € 60,600 3,030] Car @ 20% of & 46,800 9,360) 3,780 1,410 2,520 12,000 5,350 960 12,390 By Subscriptions 62,130 Add : Due as on 31-3-16 2,940 65,070 Less : Due as on 31-3-15 3,600 BySiupius koma: =e Fair Receipts 7,200 Less : Fair Expenses 7,170 By Surplus from Variety Show By Interest By Profit from Bar (W.N. 2) By Profit on Sale of Car (W.N. 3) 16.101 61,470 30 12,810 690 6,000 3,300 1,290 By Balance b/d By Bar Purchases (balancing figure) 1,770 16,830 18,600 By Bar Collections By Closing Stock16.102 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS, ILLUSTRATION 40. (Restaurant Trading Account and calculation of amounts of certain items) RAJASTHAN CLUB which is also running a restaurant provides you the following information: 1. Opening and closing balances: Particulars Ason | i 01-04-2020 Furniture 4,40,000 Sports equipment 4,40,000 China Glass, Cutlery etc. 50,000 6% Govt. Securities (Face value %3,00,000) 5,00,000 Stock of Sports Materials 6,000 Advances to Suppliers of Sports Materials 2,000 Due to Suppliers of Sports Materials 6,000 Stock of Stationery 4,000 Unpresented Cheques being payment for stationery 1,800 Subscription Outstanding 9,500 7,000 © Subscription Received-in-Advance 2,800 5,200 Outstanding Miscellaneous Expenses 9,500 7,000 Miscellaneous Expenses paid in advance 2,800 5,200 Outstanding Wages 10,000 8,000 Cash Balance 20,000 6,000 Bank Balance as per Pass Book 10,00,000 2 Stock of Provisions 60,000 7,60,000 Debtors for Provisions 60,000 80,000 Creditors for Provisions 2,00,000 1,00,000 2. Payments: Suppliers of sports materials®21,600, miscellaneous expenses ®1,48,900; wages®1,02,000, stationery %3,200; furniture (purchased on 1-10-2020) %3,00,000; sports equipment (purchased on 1-10-2020) %3,00,000; 8% R.B.I Tax Free Bonds (purchased on 1-1-2021) [Face value %2,00,000] %1,58,400; creditors for provisions 221 ,00,000, cash purchases of provisions 1/11" of total purchases. 3. Receipts: Subscription %1,48,900; interest on 6% Govt. securities (after TD.S @ 10%) %16,200 collection from debtors for provisions %17,80,000, cash sales of provisions 10% of sales. TAXMANN®FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.103 jon Rates: On China Glass and Cutlery : 20%, on furniture : 10% p.a.; Sports at: 10%. The cost of boarding expenses®55,000 (including 40,000 for restaurant Write 25% off stationery. Furniture (having a book value of $40,000) as on 1-4-2020 dat a loss of 20% on 31-12-2020. the amount of Profit/Loss as per Restaurant Trading Account for the ending on March 31, 2021. “Caloulate the amount of subscription to be credited to Income and Expenditure " Aecount for the year ending on March 31, 2021. Calculate the amount of miscellaneous expenses to be debited to Income and ~ Expenditure Account for the year ending on March 31, 2021. Calculate the sports materials consumed to be debited to Income and Expenditure Account for the year énding on March 31, 2021. () Calculate stationery consumed to be debited to Income and Expenditure Account the year ending on March 31, 2021. the Bank Balance to be shown in the closing Balance Sheet as at March Financial Statements are not required to be prepared.] [[Link] (Hons), Delhi 20221 as per Restaurant Trading Account RESTAURANT TRADING ACCOUNT 60,000 | By Sales of Provisions Cash Sales (WN1) 2,00,00016.104 FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS Working Notes: mi (1) Debtors for Provisions To Balance b/d 60,000 | By Cash/Bank A/c To Credit Sales A/c (balancing | 18,00,000 | By Balance c/d figure) 18,60,000 18,60,009 Cash Sales of Provisions = 10% of Total Sales Credit Sales of Provisions = 90% of Total Sales If Credit Sales % 90 Then Cash Sales = 710 If Credit Sales % 18,00,000, then cash sales = 8 x %18,00,000 = %2,00,000 Dr. (2) Creditors for Provisions Account Cr Particulars a x To Cash/Bank A/c 21,00,000 | By Balance b/d To Balance c/d 1,00,000 | By Credit Purchases A/c 20,00,000 (balancing figure) 22,00,000 22,00,000 Cash Purchases of Provisions = tr of Total Purchases Credit Purchases of Provisions = 2 of Total Purchases If credit purchases €10, then cash purchases = @1 If credit purchases %20,00,000, then cash purchases = x %20,00,000 = %2,00,000 we 10 (6) Calculation of amount of subscription to be credited to Income and Expenditure Account Dr. SUBSCRIPTION ACCOUNT % By Subscription Received in (Beginning) Advance ToIncomeandExpenditureA/c | 1,44,000 | By Cash/Bank A/c 1,48,900 (Balancing figure) : To Subscription Received in| 5,200 | By Subscription Outstanding} 7.00? Advance (Closing) (Closing) 1,58,700 TAXMANN®FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANISATIONS 16.105 y calculation of Miscellaneous Expenses to be debited to Income and Expenditure MISCELLANEOUS EXPENSE ACCOUNT "wise Expenses Paid in By Outstanding Misc. 9,500 P ® xdvance A/c (Beginning) 2,800| Expenses A/c (Beginning) Cash/Bank A/c 1,48,900 | By Income and Expenditure 1,44,000 Alc (Balancing Figure) "qo Outstanding Misc. By Misc. Expenses paid in 5,200 Expenses A/c (Closing) 7,000 | Advance A/c (Closing) 58,700 1,58,700 Calculation of sports Materials Consumed to be debited to Income and Account CREDITORS FOR SPORTS MATERIALS ACCOUNT By Due to Suppliers of Sports 2,000} — Materials A/c (Beginning) 6,000 21,600 | By Credit Purchases of Sports Materials A/c 20,200 (Balancing figure) By Advances to Suppliers of 3,600| — Sports Materials A/c 1,000 i (At the end) 27,200 27,200 STOCK OF SPORTS MATERIALS ACCOUNT Cr j BySports Materials: mens A/c (Balancing figure) 25,200 (Income and Expenditure A/c 20,200 By Balance cid 1,000 26,200 26,200 f Stationery Consumed to be debited to Income and Expenditure - 23,200 as per Pass Book + %600 - 1,800 = 2,000