NUMERICAL QUESTIONS:

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


Answer:



Page No. 52

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

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


Prepare the Income and Expenditure Account for the Year ended on March 31, 2007 after considering the following:
(i) It was decided to treat Fifty per cent of the amount received on account of Legacies and Donations as income.
(ii) Liabilities to be provided for are:
Rent Rs 800; Salaries Rs 1,200; advertisement Rs 200.
(iii) Rs 2,000 due for interest on investment was not actually received.
Answer:


NOTE: As per the solution, Excess of Income over Expenditure is Rs 1,500; however, as per the book, it is Rs 2,500.

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


Answer:


NOTE: As per the solution, Excess of Income over Expenditure is Rs 3,23,000; however, as per the book, it is Rs 3,07,000.

Page No. 53

Question 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:



Answer:




Question 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 on 31.3.2017:


Give reasons for your answers
Answer:
(a)

Reason
Donation for construction of Pavilion is a donation for specific purpose.
Expenses on construction on Pavilion is a capital expenditure.
(b)


Reason
All funds received are treated as capital receipts and expenses related to any fund are deduced from the concerned funds.
(c)



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

Question 6: From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2013.


Information:
(i) Subscription outstanding as on 31.12.2016 Rs 2,000 and on December 31, 2017 Rs 1,500.
(ii) On December 31, 2017 Salary outstanding Rs 600, and one month Rent paid in advance.
(iii) On Jan. 01, 2016 organisation owned Furniture Rs 12,000, Books Rs 5,000.
Answer:
Books of Adult Literacy Organisation
Income and Expenditure Account
as on Dec. 31, 2017







Page N0. 54

Question 7: The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017:


You are required to prepare an Income and Expenditure Account after the following adjustments:
(a) Subscription still to be received are Rs 750, but subscription include Rs 500 for the year 2018.
(b) In the beginning of the year the Sangh owned building Rs 20,000 and furniture Rs 3,000 and Books Rs 2,000.
(c) Provide depreciation on furniture @ 5% (including purchase), books @ 10% and building @ 5%.
Answer:

NCERT Solution - Accounting for Not-for-Profit Organisation (Part - 2)

Introduction
Accounting for Not-for-Profit Organizations is a crucial topic in the field of finance and accounting. It involves the financial management and reporting of entities that are formed with a non-profit motive, such as charitable organizations, clubs, societies, etc. The NCERT Solution for Accounting for Not-for-Profit Organization (Part - 2) provides a comprehensive guide to understanding the key concepts and principles involved in this area.

Explanation of NCERT Solution - Accounting for Not-for-Profit Organisation (Part - 2)
The NCERT Solution for Accounting for Not-for-Profit Organisation (Part - 2) covers various topics and concepts related to the financial management of non-profit organizations. Here is a detailed explanation of some of the key aspects covered in this solution:

1. Receipts and Payments Account:
- The Receipts and Payments Account is a summary of cash and bank transactions of a non-profit organization.
- It includes all the receipts and payments made during a specific period, usually a year.
- The account provides information about the opening and closing balances of cash and bank, as well as the surplus or deficit for the period.

2. Income and Expenditure Account:
- The Income and Expenditure Account is prepared to determine the surplus or deficit of a non-profit organization.
- It includes all the revenue and expenses incurred during a specific period, regardless of whether they are in cash or not.
- The account follows the accrual basis of accounting and includes items such as subscriptions, donations, rent, salaries, etc.

3. Balance Sheet:
- The Balance Sheet is a statement of the financial position of a non-profit organization at a specific date.
- It includes the assets, liabilities, and capital of the organization.
- The assets are classified into fixed assets, investments, and current assets, while the liabilities may include loans, mortgages, etc.

4. Accounting for Specific Items:
- The solution also covers the accounting treatment for specific items such as entrance fees, life membership fees, and legacies.
- It explains how to account for these items in the Receipts and Payments Account, Income and Expenditure Account, and Balance Sheet.

Conclusion
The NCERT Solution for Accounting for Not-for-Profit Organisation (Part - 2) provides a comprehensive understanding of the financial management and reporting of non-profit organizations. It covers various aspects such as the Receipts and Payments Account, Income and Expenditure Account, Balance Sheet, and accounting for specific items. By studying this solution, students can develop a strong foundation in the accounting principles and practices applicable to non-profit organizations.