Chapter 4

Non Profit Organisation

Solution 1
Income & Expenditure A/c

Expenditure

Amount Income

Amount

To Salary
To diet expenses
To rent & rates
To Printing & Stationery
To electricity & water charges
To office expenses
To surplus

12,000 By subscription
12,250
7,800 By govt. grants
10,000
850 By fees
2,400
1,200 By Donations
4,000
1,200 By benefit shows (net)
3,000
1,000 By interest on investments
400
8,000

32,050
32,050

Statement of Affairs
as on 31.3.2005

Liabilities

Amount Assets

Amount

Building fund
Government grant

40,000 Building
40,000 (+) addition

Capital fund
(+) surplus

Hospital equipt
32,650 (+) Addition

24,650
8,000

Subscription received in adv.

45,000
25,000

17,000
8,500

70,000
25,500

1,200 Furniture
3,000
Investment
10,000
Subscription receivable
700
Accrued interest
400
Prepaid rent
150
Cash at bank
3,400
Cash in hand
700

1,13,850
1,13,850

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174

Non Profit Organisation

Chap. 4

Working Notes
Statement of affairs as on 31.3.04

Particulars

Amount Particulars

Amount

Building fund
Creditors
Capital fund
(bal. figure)

40,000 Building
45,000
3,600 Equipment
17,000
24,650 Sub. receivable
3,250
Cash at bank
2,600
Cash in hand
400

68,250
68,250

Building
Balance on 31.3.05
70,000
Paid during the year
25,000
as on 31.12.04
45,000
Equipment
Balance on 31.3.05
25,500
Paid during the year
8,500
as on 31.12.04
17,000
Subscription due for 2004
Receivable on 31.3.04
3,250
received in 2005
2,550
Still receivable for
700
(the year 2004)
Solution 3
Income & Expenditure A/c of Exe. club
for the year ending 31st Dec. 2005

Expenditure

Amount Income

Amount

To Groundsmand fee
To Rent of ground
To Travell exp.
400
(-) contribution
100

To Printing & Off. exp.

(280-100+80)
To repairs
(500-300+260)
To dep. on mach.
- Opg. bal.
2,300
(-) clg
1750
550
(-) Sale
80

750 By Donation & subscription

250 (2600-150+100)
By Receipts from teas
300 (300-250)

2,550
50

260 By proceeds of variety entertainment 780

By interest (30+20)
50
460

470

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Chap. 4
To honorarium
To Bonus to groundsman
To surplus transfer
to capital fund

Non Profit Organisation

175

600

40

3,430
3,430

Balance Sheet
as on 31.12.2005

Liabilities

Amount Assets

Amount

Groundman bonus o/s

300 Cash in hand
250
Printing o/s
80 Cash in deposit
3,090
Honorarium fund
1,000 Machinery & Equipments
1,700
Capital fund
3,080
(+) surplus
40
3,120

5,210
5,210

Working Note 1
Machinery A/c

Particulars
To bal. b/d
To Purchases

Amount Particulars
Amount
800 By Sale
80
1,500 By Dep. (b/f)
470
By bal. c/d
1,750

2,300
2,300

Opening Balance Sheet

Particulars

Amount Particulars

Amount

Outstanding exp.
Capital fund
(balancing figure)

500 Cash in hand

100
3,080 Cash in deposit
2,230
Cash in current A/c
300
Subscription due
150
Machinery
800

3,580
3,580

Solution 4
Balance Sheet
as on 31.3.2005

Liabilities

Amount Assets

Amount

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176

Non Profit Organisation

Outstanding salary
O/s Rent & electricity
Magazines & newspapers
Capital fund (bal. figure)

710
864
226
47,000

Chap. 4

Furniture
Library books
sports equipment
Fixed deposit
Cash in hand & bank
Prepaid expenses
Subscription receivable
Interest accrued

9,600
5,000
7,200
20,000
4,820
417
1,263
500

48,800
48,800

Income & expenditure A/c (31.3.2006)

Expenditure

Amount Income

Amount

To Salary
11,460 By subscription (w. note)
To rent & electricity
7,329 By interest
To magazines & newspaper 2,286 By Misc. income

28,912
2,000
700

Expenditure

Amount Income

Amount

To depreciation
Furniture
S/equipt
L/books

By deficit
(balancing figure)

2,888

960
1640
750
3,350

34,500
34,500

Balance Sheet as on 31.3.2006

Liabilities

Amount Assets

Amount

O/s Salary
O/s rent & electricity

170 Furniture
973 (-) Dep.

9,600
960

O/s Newspaper exp.

340 Sports equipment
7,200
Capital fund
47,000
(+) Addition
1,000
(-) deficit
2,888 44,112 (-) Dep.
1,640

Library books
5,000
(+) Addition
1,000
(-) Dep.
750

Fixed deposit
Cash in hand & bank
Prepaid expenses
Sub. receivable
Interest accrued

45,595

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8,640

6,560

5,250
20,000
2,450
620
1,575
500

45,595

Chap. 4

Non Profit Organisation

177

Working Notes:
Salary A/c

Particulars

Amount Particulars

Amount

To cash
To O/s (2006)
To Prepaid (2005)

12,000 By O/s (2005)

710
170 By Income & expenditure A/c
11,460

12,170
12,170

Rent & Electricity A/c

Particulars

Amount Particulars

Amount

To cash
To Prepaid O/s (2006)

7,220 By prepaid (2006)

864
973 By I/Exp. A/c
7,329

8,193
8,193

Magazines & newspaper A/c

Particulars

Amount Particulars

Amount

To cash
To O/s (2006

2,172 By Prepaid (2006)

864
340 By I/Exp. A/c
2,286

2,512
2,512

Sundry Expenses A/c

Particulars

Amount Particulars

Amount

To cash
To prepaid (2005)

10,278 By O/s (2006)

417 By prepaid (2006)

620
By I/Exp. A/c
10,075

10,695
10,695

Calculation of Depreciation
(i) Furniture @ 10% on 9,600
= 960
(ii) Sports equipt @ 20% on 8,200
= 1,640
(iii) Library book value
6,000
(-) revalued at
5,250
=750
Calculation of subscription
Subscription received
= 28,600
(+) receivable on 31.3.06
=
1,575
(-) receivable on 31.3.05
=
1,263

Total
= 28,912

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178

Non Profit Organisation

Chap. 4

Solution 6
Receipt & Payment A/c
for the year ending 31.3.2006

Receipt

Amount Payment

Amount

To bal. b/d (bal. fig.)

To subscription (W.N.)
To interest on prize fund
To lecture fee
To entrance fee
To sale of old newspapers
To Miscellaneous income

4,660 By upkeep of ground

10,600
17,320 (10,000+600)
1,000 By printing (1,000 + 240)
1,240
1,500 By Salaries
11,000
2,600 By Rent
600
260 By Prizes
2,000
400 By bal. c/d
2,300

27,740
27,740

Subscription A/c

Particulars

Amount Particulars

Amount

To Sub. O/s (04-05)

800 By Sub. O/s (05-06)
700
To sub. received in adv.
100 By sub. in adv. (04-05)
200
(06-07)
To income & expenditure A/c17,320 By Cash (bal. figure)
17,320

18,220
18,220

Solution 10
Receipt & Payment A/c

Reception

Amount Payments

Amount

To bal. b/d (bal. fig)

To Subscription
- as per I/E A/c
7,500
(+) received
(+) 2006 received
(-) advance
(-) 2005 o/s

600
200

8,370
450
750

To entrance fee
To contribution for dinner
To profit on sport meet
(receipt less exp.)

1,390 By salaries
4,750
(+) paid for 2004
400
(-) unpaid for 2005
450

By General exp.
500
(+) paid for 2004
60

By Audit fee (2004)

By Honorarium
7,170 By Stationery & Printing
250 By annual dinner exp.
1,000 By interest & bank charges
750 By sports equipments
{2,700 - (2,600-300)}
By bal. c/d

10,560

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4,700
560
200
1,000
450
1,500
150
400
1,600

10,560

Chap. 4

Non Profit Organisation

179

Balance Sheet as on 31.3.2005

Liabilities

Amount Assets

Amount

Subscription received
in advance
Audit fee O/s
Salary O/s

270 Freehold ground

Sports equipment
250 (+) Addition
450 (-) Depreciation

10,000
2,600
400
300

2,700

Bank Loan
Capital Fund
(+) Surplus

2,000 Subscription O/s

750
11,540
Insurance prepaid
60
600 12,140 Cash in hand
1,600

15,110
15,110

Working Note
Balance Sheet as on 31.3.2004

Liabilities

Amount

Assets

Amount

Sub. received in adv.

Salary O/s
Audit fee O/s
Bank Loan
Capital fund (bal. figure)

450 Freehold ground

10,000
400 Sports equipment
2,600
200 Subscription O/s
600
2,000 Cash in hand
1,390
11,540

14,590
14,590

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