NCERT Solution - Chapter 12 : Accounting for Not-for-Profit Organisation (Part - 2) - Class 11 PDF Download
Numerical Questions :
Question 1:
From the following particulars taken from the Cash Book of a health club, prepare a Receipts and Payments Account.
|
Particulars |
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 |
Answer 1:
|
Books of Health Club Receipt and Payment Account |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Receipts |
Amount Rs |
Payments |
Amount Rs |
||||
|
Balance b/d |
|
Investment |
80,000 |
||||
|
Cash in Hand |
5,000 |
|
Rent |
20,000 |
|||
|
Cash at Bank |
25,000 |
30,000 |
General Expenses |
21,500 |
|||
|
Subscriptions |
1,65,000 |
Postage and Stationery |
2,000 |
||||
|
Donations |
35,000 |
Courier Charges |
1,000 |
||||
|
|
|
Sundry Expenses |
2,500 |
||||
|
|
|
Balance c/d |
|
||||
|
|
|
Cash in Hand |
12,000 |
|
|||
|
|
|
Cast at Bank |
91,000 |
1,03,000 |
|||
|
|
|
(Balancing figure) |
|
||||
|
|
2,30,000 |
|
2,30,000 |
||||
Question 2:
The Receipt and Payment Account of Harimohan charitable institution is given:
|
Receipt and Payment Account for the year ending March 31, 2007 |
|||
|
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 |
32,000 |
Charities |
60,000 |
|
Subscriptions |
50,200 |
Salaries |
10,400 |
|
Endowment Fund |
60,000 |
Rent and Taxes |
4,000 |
|
Legacies |
24,000 |
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 |
|
|
|
Balance c/d: |
|
|
|
|
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, 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 :
|
Books of Harimohan Charitable Institution Income and Expenditure Account |
||||||
|
Dr. |
|
Cr. |
||||
|
Expenditure |
Amount Rs |
Income |
Amount Rs |
|||
|
Rent and Taxes |
4,000 |
|
Donations |
16,000 |
||
|
Add: Outstanding |
800 |
4,800 |
Legacies |
12,000 |
||
|
|
|
Subscriptions |
50,200 |
|||
|
Salaries |
10,400 |
|
Interest on Investment |
3,800 |
|
|
|
Add: Outstanding |
1,200 |
11,600 |
Add: Accrued Interest |
2,000 |
5,800 |
|
|
|
|
|
|
|||
|
Advertisement |
1,100 |
|
Interest on Deposits |
800 |
||
|
Add: Outstanding |
200 |
1,300 |
Sale of Old Newspapers |
500 |
||
|
|
|
|
|
|||
|
Charities |
60,000 |
|
|
|||
|
Printing |
1,000 |
|
|
|||
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Postage |
300 |
|
|
|||
|
Insurance |
4,800 |
|
|
|||
|
|
|
|
|
|||
|
Surplus (Excess of Income over Expenditure) |
1,500 |
|
|
|||
|
|
|
|
|
|||
|
|
85,300 |
|
85,300 |
|||
|
|
|
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|
|||
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:
|
Details |
Amount Rs |
|
Fees collected, including Rs 80,000 on account of the previous year |
5,20,000 |
|
Fees for the year outstanding |
30,000 |
|
Salary paid, including Rs 5,000 on account of the previous year |
68,000 |
|
Salary outstanding at the end of the year |
3,000 |
|
Entertainment expenses |
8,000 |
|
Tournament expenses |
25,000 |
|
Meeting Expenses |
18,000 |
|
Traveling Expenses |
7,000 |
|
Purchase of Books and Periodicals, including Rs 31,000 for purchase of Books |
40,000 |
|
Rent |
15,000 |
|
Postage, telegrams and telephones |
6,000 |
|
Printing and Stationery |
18,000 |
|
Donations received |
25,000 |
Answer :
|
Income and Expenditure Account |
||||||
|
Dr. |
|
Cr. |
||||
|
Expenditure |
Amount Rs |
Income |
Amount Rs |
|||
|
Salaries |
68,000 |
|
Fees Collected |
5,20,000 |
|
|
|
Less: Previous year's Outstanding |
(5,000) |
|
Less: Previous year's Outstanding |
(80,000) |
|
|
|
|
63,000 |
|
|
4,40,000 |
|
|
|
Add: Current year's Outstanding |
3,000 |
66,000 |
Add: Current year's Outstanding |
30,000 |
4,70,000 |
|
|
Entertainment Expenses |
|
8,000 |
Donations |
25,000 |
||
|
Tournament Expenses |
25,000 |
|
|
|||
|
Meeting Expenses |
18,000 |
|
|
|||
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Traveling Expenses |
7,000 |
|
|
|||
|
Purchases of Periodicals (40,000 – 31,000) |
9,000 |
|
|
|||
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Postage, Telegrams and Telephone’s |
6,000 |
|
|
|||
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Rent |
15.000 |
|
|
|||
|
Printing and Stationery |
18,000 |
|
|
|||
|
Surplus (Excess of Income over Expenditure) |
3,23,000 |
|
|
|||
|
|
|
|
|
|||
|
|
4,95,000 |
|
4,95,000 |
|||
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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.
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:
|
Particulars |
Rs |
|
Sports Fund as on 1.4.2005 |
35,000 |
|
Sports Fund Investments |
35,000 |
|
Interest on Sports Fund |
4,000 |
|
Donations for Sports Fund |
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 |
Answer 4:
|
Books of Sports Club Income and Expenditure Account |
|||
|
Dr. |
|
|
Cr. |
|
Expenditure |
Amount Rs |
Income |
Amount Rs |
|
|
|
Interest on General Fund Investments |
8,000 |
|
|
|
|
|
|
Balance Sheet |
||||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Sports Fund |
35,000 |
|
Sports Fund Investments |
35,000 |
|
Add: Interest on Sports Fund |
4,000 |
|
General Fund Investments |
80,000 |
|
Add: Donations for Sports Fund |
15,000 |
|
|
|
|
|
54,000 |
|
|
|
|
Less: Expenses on Sports Event |
(4,000) |
|
|
|
|
Less: Prize Awarded |
(10,000) |
40,000 |
|
|
|
General Fund |
80,000 |
|||
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 31.3.2013 and its Balance Sheet as on 31.3.2013:
|
|
Rs |
|
|
(a) |
Donation received during the year for the construction of a permanent Pavilion |
12,25,000 |
|
|
Expenditure incurred up to 31.3.2013 on its construction |
10,80,000 |
|
|
The total estimated expenditure on construction of Pavilion being |
25,00,000 |
|
|
|
|
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(b) |
Tournament Fund: |
|
|
|
Balance as on 1.4.2012 |
10,700 |
|
|
Subscriptions for tournament received during the year |
65,800 |
|
|
Expenditure incurred during the year on conducting tournaments |
72,400 |
|
|
|
|
|
(c) |
Life Membership fee received during the year |
28,000 |
Give reasons for your answers
Answer :
(a)
|
Books of Bombay Women Cricket Club Balance Sheet as on March 31, 2013 |
||||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Donation for Pavilion |
12,25,000 |
|
Construction of Pavilion in Progress |
10,80,000 |
|
Less: Exp. on construction of Pavilion |
(10,80,000) |
1,45,000 |
|
|
|
|
|
|
|
|
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Capital |
|
|
|
|
|
Add: Pavilion Construction |
10,80,000 |
10,80,000 |
|
|
|
|
|
|
|
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Reason
Donation for construction of Pavilion is a donation for specific purpose.
Expenses on construction on Pavilion is a capital expenditure.
(b)
|
Balance Sheet as on March 31, 2013 |
||||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Tournament Fund |
10,700 |
|
|
|
|
Add: Subscription for Tournament |
65,800 |
|
|
|
|
76,500 |
|
|
|
|
|
Less: Tournament Expenses |
(72,400) |
4,100 |
|
|
|
|
|
|
|
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Reason
All funds received are treated as capital receipts and expenses related to any fund are deduced from the concerned funds.
(c)
|
Balance Sheet as on March 31, 2013 |
|||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Life Membership Fees |
28,000 |
|
|
|
|
|
|
|
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.
|
Receipt and Payment Account for the year ending as on December 31, 2006* |
||||
|
Receipts |
Amount Rs |
Payments |
Amount Rs |
|
|
Balance b/d |
|
|
General Expenses |
3,200 |
|
Cash in hand |
|
4,000 |
News paper |
1,850 |
|
Cash at Bank |
|
15,550 |
Electricity |
3,000 |
|
Subscriptions |
|
|
Fixed deposit with bank (on 31.06.2006*) @ 10% p.a. |
18,000 |
|
2005* |
1,200 |
|
||
|
2006* |
26,500 |
|
Books |
7,000 |
|
2007* |
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 (book value Rs 5, 000) |
|
3,700 |
Furniture (purchased) |
10,500 |
|
Interest received on FD |
|
450 |
Balance c/d |
|
|
|
|
|
Cash in Hand |
3,000 |
|
|
|
|
Cash at Bank |
8,200 |
|
|
|
65,150 |
|
65,150 |
|
|
|
|
|
|
Information:
(i) Subscription outstanding as on 31.12.2012 Rs 2,000 and on December 31, 2013 Rs 1,500.
(ii) On December 31, 2013 Salary outstanding Rs 600, and one month Rent paid in advance.
(iii) On Jan. 01, 2012 organisation owned Furniture Rs 12,000, Books Rs 5,000.
* As per the question, 2005 should be 2012, 2006 should be 2013 and 2007 should be 2014.
Answer :
|
Books of Adult Literacy Organisation Income and Expenditure Account as on Dec. 31, 2013 |
||||||
|
Dr. |
Cr. |
|||||
|
Expenditure |
Amount Rs |
Income |
Amount Rs |
|||
|
Loss on Sale of Old Furniture |
1,300 |
Subscription |
26,500 |
|
||
|
General Expenses |
3,200 |
Add: Outstanding for 2013 |
1,500 |
28,000 |
||
|
Newspapers |
1,850 |
|
|
|||
|
Electricity |
|
3,000 |
Sale of Old Newspapers |
1,250 |
||
|
Salary |
3,600 |
|
Government Grant |
12,000 |
||
|
Add: Outstanding for 2013 |
600 |
4,200 |
Interest received on F.D. |
450 |
|
|
|
|
|
|
Add: Accrued Interest |
450 |
900 |
|
|
Rent |
6,500 |
|
|
|
||
|
Less: Prepaid for 2014 {6,500×(1/13)} |
(500) |
6,000 |
|
|
||
|
Postages Charges |
|
300 |
|
|
||
|
Surplus (Excess of Income over Expenditure) |
22,300 |
|
|
|||
|
|
|
|
|
|||
|
|
42,150 |
|
42,150 |
|||
|
|
|
|
|
|||
|
Balance Sheet as on Dec. 31, 2012 |
|||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Capital Fund on Dec. 31, 2012 (Balancing Figure) |
38,550 |
Subscription Outstanding |
2,000 |
|
|
|
Cash in Hand |
4,000 |
|
|
|
Cash at Bank |
15,550 |
|
|
|
Furniture |
12,000 |
|
|
|
Books |
5,000 |
|
|
38,550 |
|
38,550 |
|
|
|
|
|
|
Balance Sheet as on Dec. 31, 2013 |
|||||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
Capital |
38,550 |
|
Prepaid Rent |
500 |
|
|
Add: Surplus |
22,300 |
60,850 |
Books |
5,000 |
|
|
|
|
Add: Purchases |
7,000 |
12,000 |
|
|
Salary Outstanding |
600 |
|
|
||
|
Subscription Received in Advance for 2014 |
500 |
Furniture |
12,000 |
|
|
|
|
|
Add: Purchases |
10,500 |
|
|
|
|
|
|
22,500 |
|
|
|
|
|
Less: Sale |
(5,000) |
17,500 |
|
|
|
|
|
|
||
|
|
|
Fixed Deposit |
18,000 |
|
|
|
|
|
Add: Accrued Interest |
450 |
18,450 |
|
|
|
|
|
|
||
|
|
|
Cash in Hand |
|
3,000 |
|
|
|
|
Cash at Bank |
|
8,200 |
|
|
|
|
Subscription Outstanding for 2013 |
1,500 |
|
|
|
|
|
Add: Outstanding for 2012 |
800 |
2,300 |
|
|
|
|
|
|
||
|
|
61,950 |
|
61,950 |
||
|
|
|
|
|
||
NOTE: In order to match the answer with the book, Adjustment (i) - Subscription outstanding on 31.12.2012 Rs 2,000 has been taken as Subscription outstanding for 31.12.2012 Rs 2,000 and Subscription outstanding on December 31, 2013 Rs 1,500 has been taken as Subscription outstanding for December 31, 2013 Rs 1,500.
Question 7:
The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2013:
|
Receipts |
Amount Rs |
Payments |
Amount Rs |
|
Balance from last year |
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 (books value Rs 1,000) |
750 |
Legal fee |
1,870 |
|
Interest |
350 |
Books |
6,500 |
|
|
|
Furniture purchased |
8,600 |
|
|
|
Expenses on nukar drama |
1,300 |
|
|
|
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 include Rs 500 for the year 2014.
(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 :
|
Books of Nari Kalyan Samittee Income and Expenditure Account as on Dec. 31, 2013 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Expenditure |
Amount Rs |
Income |
Amount Rs |
||
|
Rent |
6,600 |
Subscription |
32,500 |
|
|
|
Electric Charges |
3,200 |
Add: Outstanding for 2013 |
750 |
|
|
|
Lecturer’s fee |
730 |
33,250 |
|
||
|
Office Expenses |
1,480 |
Less: Advance for 2014 |
(500) |
32,750 |
|
|
Printing and Stationery |
1,050 |
Donation |
2,500 |
||
|
Legal Fee |
1,870 |
Profit from Entertainment |
7,250 |
||
|
Depreciation on: |
|
Interest |
350 |
||
|
Books |
750 |
|
|
|
|
|
Furniture |
580 |
|
|
|
|
|
Building |
1,000 |
2,330 |
|
|
|
|
Expenses on Nukar Drama |
1,300 |
|
|
||
|
Loss on Sale of Books |
250 |
|
|
||
|
Surplus |
24,040 |
|
|
||
|
|
|
|
|
||
|
|
42,850 |
|
42,850 |
||
|
|
|
|
|
||
|
Balance Sheet as on Dec. 31, 2012 |
|||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Capital Fund as Dec. 31, 2012 |
27,270 |
Building |
20,000 |
|
(Balancing Figure) |
|
Furniture |
3,000 |
|
|
|
Books |
2,000 |
|
|
|
Cash and Bank |
2,270 |
|
|
|
|
|
|
|
27,270 |
|
27,270 |
|
|
|
|
|
|
Balance Sheet as on Dec. 31, 2013 |
||||||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|||
|
Capital Fund |
27,270 |
|
Building |
20,000 |
|
|
|
Add: Life Membership Fees |
3,250 |
|
Less: 5% Depreciation |
(1,000) |
19,000 |
|
|
Add: Surplus |
24,040 |
54,560 |
|
|
|
|
|
|
|
Furniture |
3,000 |
|
||
|
Advance Subscription for 2014 |
500 |
Add: Purchases |
8,600 |
|
||
|
|
|
|
11,600 |
|
||
|
|
|
Less: 5% Depreciation |
580 |
11,020 |
||
|
|
|
|
|
|||
|
|
|
Books |
2,000 |
|
||
|
|
|
Add: Purchases |
6,500 |
|
||
|
|
|
8,500 |
|
|||
|
|
|
Less: Sales |
1,000 |
|
||
|
|
|
|
|
7,500 |
|
|
|
|
|
Less: 5% Depreciation |
750 |
6,750 |
||
|
|
|
Cash in Hand |
|
8,040 |
||
|
|
|
Cash at Bank |
|
9,500 |
||
|
|
|
Subscription Outstanding |
|
750 |
||
|
|
|
|
|
|||
|
|
55,060 |
|
55,060 |
|||
|
|
|
|
|
|||
Note: As per the solution, Surplus is Rs 24,040; however, the Surplus given in the book is Rs 24,090.
FAQs on NCERT Solution - Chapter 12 : Accounting for Not-for-Profit Organisation (Part - 2) - Class 11
| 1. What is a not-for-profit organization? |  |
| 2. What is the difference between a not-for-profit organization and a for-profit organization? | |
| 3. What is the purpose of accounting for a not-for-profit organization? | |
| 4. What are the different types of funds maintained by a not-for-profit organization? | |
| 5. What is the treatment of donations received by a not-for-profit organization? | |
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Nov 15, 2024 Last updated |
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NCERT Solution - Chapter 12 : Accounting for Not-for-Profit Organisation (Part - 2) - Class 11
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,NCERT Solution - Chapter 12 : Accounting for Not-for-Profit Organisation (Part - 2) - Class 11
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,NCERT Solution - Chapter 12 : Accounting for Not-for-Profit Organisation (Part - 2) - Class 11
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NCERT Solution - Chapter 12 : Accounting for Not-for-Profit Organisation (Part - 2) Free PDF Download
Importance of NCERT Solution - Chapter 12 : Accounting for Not-for-Profit Organisation (Part - 2)
NCERT Solution - Chapter 12 : Accounting for Not-for-Profit Organisation (Part - 2) Notes
NCERT Solution - Chapter 12 : Accounting for Not-for-Profit Organisation (Part - 2) Class 11 Questions
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