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Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce PDF Download

Page No 1.64:

Question 38: From the following Receipts and Payments Account of Jaipur Sports Club, prepare Income and Expenditure Account for the year ended 31st March, 2019:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
ANSWER:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

Page No 1.65:

Question 39: 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 as at 31st March, 2019:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
ANSWER:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

Note: General Fund will be shown on the liabilities side and general fund investments will be shown on the asset side of the balance sheet as on 31st March, 2019.
Working Notes:
1)
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

Page No 1.65:

Question 40: Prepare Income and Expenditure Account from the following particulars of Youth Club for the year ended on 31st March, 2018:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Additional Information:
(i) Subscription outstanding as at 31st March, 2018 ₹ 16,200.
(ii) ₹ 1,200 is still in arrears for the year 2016-17 for subscription.
(iii) Value of sports material at the beginning and at the end of the year was ₹ 3,000 and ₹ 4,500 respectively.
(iv) Depreciation to be provided @ 10% p.a. on furniture.

ANSWER:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

Note: If nothing is mentioned, Entrance fee is to be treated as a revenue receipt. Working Notes: 1)
Sports Material Consumed = Opening Stock + Purchases – Closing Stock

     =    ₹ (3,000 + 11,500 – 4,500) = ₹ 10,000


Page No 1.66:

Question 41: Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March, 2019:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - CommerceAdditional Information:
(i) During the year ended 31st March, 2019, the club had 550 members and each paying an annual subscription of ₹ 100.
(ii) Salaries Outstanding as at 1st April, 2018 were ₹ 10,000 and as at 31st March, 2019 were ₹ 5,000.
Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2019.
ANSWER:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Working Notes:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

Page No 1.66:

Question 42:Following is the summary of cash transactions of the Royal Club for the year ended 31st March, 2019:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

In the beginning of the year, the club possessed Books of ₹ 2,00,000 and Furniture of ₹ 85,000. Subscriptions in arrears in the beginning of the year amounted to ₹ 3,500 and at the end of the year ₹ 4,500 and six months Rent was due both in the beginning of the year and at the end of the year.
Prepare Income and Expenditure Account of the club for the year ended 31st March, 2019 and its Balance Sheet as at that date after writing off ₹ 5,000 and ₹ 11,300 on Furniture and books respectively.
ANSWER:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

Working Notes:

1)
Rent space received space in space Cash space left parenthesis including space 6 space months space rent space of space the space previous space year right parenthesis equals ₹ 16 comma 800
Rent space due space for space straight a space 6 space months space will space be equals ₹ open parentheses 16 comma 800 cross times 6 over 12 close parentheses equals ₹ 8 comma 400
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

Page No 1.67:

Question 43: From the following Receipts and Payments Account of Social Club and the information supplied, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
(a) The club has 50 members each paying an annual subscription of ₹ 500. Subscriptions Outstanding on 31st March,2018 were ₹ 6,000.
(b) On 31st March, 2019, Salaries Outstanding amounted to ₹ 2,000. Salaries paid in the year ended 31st March, 2019 included ₹ 6,000 for the year ended 31st March, 2018.
(c) On 1st April, 2018, the club owned Building valued at ₹ 2,00,000; Furniture ₹ 20,000 and Books ₹ 20,000.
(d) Provide depreciation on Furniture at 10%.

ANSWER:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

Page No 1.67:

Question 44: From the following Receipts and Payments Account and additional information given below, prepare Income and Expenditure Account and Balance Sheet of Rural Literacy Society as on 31st March, 2019:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Additional information:
(i) Subscription outstanding as on 31st March, 2018 ₹ 20,000 and on 31st March, 2019 ₹ 15,000.
(ii) On 31st March, 2019, salary outstanding ₹ 6,000 and one month rent paid in advance
(iii) On 1st April, 2018, society owned furniture ₹ 1,20,000 and books ₹ 50,000.
ANSWER:

Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

Working Notes
WN1: Ascertainment of Capital Fund
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

Page No 1.68:

Question 45: Glaxo Club's Balance Sheet as at 1st April, 2018 was as under:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Receipts and Payments Account for the year ended 31st March, 2019 was:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Subscriptions still to be received are ₹ 5,500 but subscriptions already received include ₹ 4,000 for next year. Salaries still unpaid are ₹ 6,000. Sports Equipments are now valued at ₹ 45,000. Prepare Income and Expenditure Account and the Balance Sheet, after charging 10% depreciation on Billiards Tables.
ANSWER:
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce
Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce

The document Financial Statements of Not for Profit Organisations (Part - 4) | Accountancy Class 12 - Commerce is a part of the Commerce Course Accountancy Class 12.
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FAQs on Financial Statements of Not for Profit Organisations (Part - 4) - Accountancy Class 12 - Commerce

1. What are financial statements of not-for-profit organizations?
Ans. Financial statements of not-for-profit organizations are reports that provide information about the financial performance and position of the organization. These statements include the statement of financial position (balance sheet), statement of activities (income statement), statement of cash flows, and statement of functional expenses.
2. How are financial statements of not-for-profit organizations different from those of for-profit organizations?
Ans. Financial statements of not-for-profit organizations differ from those of for-profit organizations in several ways. Not-for-profit organizations focus on achieving their mission rather than generating profits. Therefore, their financial statements reflect their financial performance in terms of program activities, donations, grants, and expenses related to their mission. In contrast, for-profit organizations emphasize revenue generation and profitability, so their financial statements focus on sales, costs, and profits.
3. What information can be found in the statement of financial position of a not-for-profit organization?
Ans. The statement of financial position of a not-for-profit organization provides information about its assets, liabilities, and net assets. It shows the organization's financial position at a specific point in time and includes details such as cash, investments, accounts payable, and net assets classified as unrestricted, temporarily restricted, or permanently restricted.
4. How can the statement of activities of a not-for-profit organization be analyzed?
Ans. The statement of activities of a not-for-profit organization shows the revenues, expenses, gains, and losses incurred during a specific period. It can be analyzed by examining the sources of revenue, such as contributions, grants, program service fees, and investment income. Additionally, the statement provides insights into the organization's program expenses, administrative expenses, and fundraising costs, allowing stakeholders to assess the efficiency and effectiveness of the organization's operations.
5. Why is the statement of functional expenses important for not-for-profit organizations?
Ans. The statement of functional expenses is important for not-for-profit organizations as it provides a breakdown of expenses by their function (e.g., program services, management and general, fundraising). This information helps stakeholders understand how the organization allocates its resources to fulfill its mission. It also ensures transparency and accountability in reporting the organization's expenses and enables comparisons with industry benchmarks and best practices.
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