Not-for-profit-organizations -[NPO]-, class 12 Questions and answers

T. S. Grewal Solutions for CBSE Class 12- Important Questions and answers

class 12 chapter NPO-Question and answers

Question:1 calculate the amount of subscription to be credited to income & expenditure A/c for the Year 2017-18

1. subscription received during 2017-18 50,000
2. subscription outstanding on 31-3-18 8,000
3. subscription outstanding on 1-04-17 6,000
4. subscription received in advance on 31-3-18 3000
5. subscription received in advance on 31-3-17 5000

Solution:

particular	Amount
subscription received during the year	50,000
Add: subscription outstanding on 31-3-18	8000
Add: subscription received in advance on 31-3-17	5000
Total	63,000
less: subscription outstanding on 1-04-17	6,000
less: subscription received in advance on 31-3-18	3000
Amount to be credited to income & expenditure A/c —	54,000

Question:2 calculate the subscription to be taken to income & expenditure A/c for 2015-16

1. Delhi club received subscription during the yr. 2015-16 1,50,000
2. subscription received in advance on 31-3-15 4,500
3. subscription received in advance on 31-3-16 5,100
4. subscription outstanding on 31-3-16 for 2015-16 3,800
5. subscription outstanding 2014-15 (of which Rs, 4,000 received in 2015-16) 6,000

Solution:

particular	Amount
Total subscription Received during the yr.	1,50,000
Add: sub, outstanding for 2015-16	5,800
sub: Received in advance on 31-3-15	4,500
Total	1,60,300
less: sub received in advance on 31-3-16	5,100
less: sub outstanding on 31-3-15	6000
sub for 2015-16 to be taken to Income & exp. A/c	1,49,200

class 12 chapter NPO-Question and answers

Question:3 Ascertain the amount of salary chargeable to Income & expenditure A/c for 2016-17

1. Total salaries paid in 2016-17 10,200
2. prepaid salaries on 31-3-2016 1,200
3. prepaid salaries on 31-3-2017 600
4. outstanding salaries on 31-3-2016 900
5. outstanding salaries on 31-3-2017 750

Solution

particular	Amount
Total salaries paid in 2016-17	10,200
Add: outstanding salaries on 31-3-17	750
prepaid salary on 31-3-16	1,200
Total	12,150
less: outstanding on 31-3-16	900
less: prepaid on 31-3-17	600
salaries Dr. to Income & exp A/c for 2016-17	10,650

Question:4 following is the extract from the receipts and payments account of a sports club. you are required to show different items in the Income and expenditure account and balance sheet of the club for the year ended 31st march, 2018 after considering the additional information given below

Receipts and payments account for the yr ended 31st march, 2018

Receipts	Rs	payments	Rs
To Donation for pavilion To contribution for governor’s part To Donations	10,00,000 2,00,000 5,000	by governor’s part expenses	2,40,000

Additional Information:

1. Amount spent on pavilion Rs, 20,00,000 the construction work is in progress and has not yet completed
2. outstanding subscription for governor’s part Rs, 30,000
3. capital fund as at march, 2017 Rs, 10,00,000
4. pavilion fund as at 31st march , 2017 Rs, 40,00,000

Solution Income and expenditure account for the yr ended 31st march, 2018

Expenditure	Rs	Income	Rs
To governor’s 2,40,000 less: contribution for party including outstanding -2,30,000	10,000	By Donation	5,000

Balance sheet as at 31st march, 2018

liabilities	Rf	amount	Assets	amount
capital fund			by outstanding subscription (for governor’s party)	30,000
opening balance	10,00,000		pavilion -in-progress (cost incurred)	20,00,000
Add: transferred from pavilion fund	20,00,000	30,00,000
pavilion fund
opening balance	40,00,00
Add: Donation for pavilion	10,00,00
less: transferred to capital fund	20,00,000	30,00,000

class 12 chapter NPO-Question and answers

Question:5 from the following extract of Receipts and payments account and additional information compute income from subscription for the year ended 31st march , 2018 and show it in the final accounts of the club.

Receipts and payments account (for the yr ended 31st march, 2018)

Receipts	Rs	payments	Rs
To subscription	100,000

Additional Information

particular	as at 31st march 2017	as at 31st march 2018
subscription outstanding	20,000	40,000
subscription Received in advance	30,000	20,000

Solution Income and expenditure account for the yr ended 31st march, 2018

Expenditure	Rs	Income	Rf	Rs
		by subscription	100,000
		Add; subscription outstanding on 31-3-2018	40,000
		Add: subscription received in advance on 31-3-2017	30,000
		Total	1,70,000
		less; subscription Received in advance on 31-3-2018	20,000
		less; subscription outstanding on 31-3-2017	20,000	130,000

liabilities	amount	Assets	amount
subscription Received in advance	20,000	subscription outstanding	40,000

Question:6 from the following information determine the amount to be debited to stationery account in Income and expenditure account for the year ended 31t march 2018.

particular	Amount
stock of stationery on 1st april, 2017	30,000
creditors for stationery on 1st april, 2017	20,000
amount paid for stationery during the year ended 31st march , 2018	1,08,000
stock of stationery on 31st march , 2018	5,000
creditors for stationery on 31st march, 2018	13,000

Also show the above items in the Income and expenditure account for the year ended 31st march , 2018 and in the balance sheet as at the date.

solution: statement showing stationery consumed during 2017-18

particulars	Rf	Amount
Amount paid for stationery during the year ended 31st march ,2018		1,08,000
Add: stock of stationery on 1st april, 2017	30,000
Add: creditors for stationery on 31st march, 2018	13,000	43,000
Total		1,51,000
less; stock of stationery on 31st march , 2018	5,000
less: creditors for stationery on 1st april , 2017	20,000	25,000
stationery consumed during 2017-18		1,26,000

class 12 chapter NPO-Question and answers

Question:7 from the following Receipts and payments account club, prepare Income and expenditure account for the year ended 31st march, 2018

Receipts and payments account (for the year ended 31st march, 2018)

Receipts	Amount	payments	Amount
To cash in hand(opening)	45,000	by salaries	4,95,000
To cash at bank (opening)	12,60,000	by stationery	89,700
To subscriptions	15,24,000	by billiard table	5,80,500
To Donation	7,20,000	by Investments	6,19,800
To Interest on Investment	18,000	by Miscellaneous expenses	75,000
To Entrance fees	1,80,000	by furniture	12,30,000
To interest Received from bank	63,000	by Insurance premium	27,000
To sale of old Newspapers	9,000	by cash in hand(closing)	33,000
		by cash at bank (closing)	6,69,000
	38,19,000		38,19,000

1. subscription in arrears for the year ended 31st march, 2018-Rs, 1,35,000 and subscription received in advance during the year ended 31st march , 2018-Rs, 39,000
2. Insurance premium prepaid is Rs, 3,000
3. The detail with respect to stationery of accountants club is as follows;

	31st march 2018	1st april 2017
stock of stationery	30,000	5,000
creditors for stationery	40,000	26,000
advance for stationery paid in 2017-18	7,000
advance paid for stationery carried from 2016-17	5,000

Solution: Income and expenditure account (for the year ended 31st march, 2018)

Expenditure	Rf	Amount	Income	Rf	Amount
To salaries		4,95,000	by subscription	15,24,000
To stationery (WN 1)		76,700	Add; Arrears	1,35,000
To Miscellaneous expenses		75,000	less: Advance	39,000	16,20,000
To insurance premium	27,000		by entrance fees		1,80,000
less: prepaid	3,000	24,000	by donation		7,20,000
To surplus		19,39,300	by Interest on Investment		18,000
(excess of Income over expenditure)			by interest received from bank		63,000
			by sale of old newspaper		9,000
		26,10,000			26,10,000

Working notes:

	Rf	Amount
consumption of stationery during the year amount paid for stationery		89,700
Add”: stock of stationery on 1st april, 2017	5,000
Add: advance paid in 2016-17	5,000
Add: creditors for stationery (31st march, 2018)	40,000	50,000
		1,39,700
less: stock of stationery (31st march, 2018)	30,000
less: advance paid 2017-18	7,000
less: creditors for stationery 1st april, 2017	26,000	63,000
stationery consumed during the year		76,700

Question:8 from the following Receipts and payments account of friend club for the year ended 31st march , 2018 prepare Income and expenditure account for the year ended 31st march , 2018 and balance sheet as at that date:

Receipts and payments account for the year ended 31st march , 2018

Receipts	Amount	payments	Amount
To balance b/d (cash in hand)	1,41,300	by rent and taxes	86,100
To entrance fees	55,200	by salaries	1,09,000
To subscription	2,20,000	by electricity charges	62,00
To Donations	1,06,100	by general expenses	12,500
To interest	4,100	by books	31,200
To surplus from cultural programme	8,200	by office expenses	45,000
		by Investments	1,40,000
		by balance c/d
		cash in bank	61,900
		cash at hand	43,000
	5,34,900		5,34,900

Additional Information:

1. In the beginning of the year, the club had books of Rs, 3,00,000 and furniture of Rs, 58,000
2. subscription in arrears on 1st april, 2017 were Rs, 6,000 and Rs, 7,000 on 31st march , 2018
3. Rs, 18,000 was due by way of rent in the beginning as well as at the end of the year.
4. write off Rs, 5,000 from furniture and Rs, 30,000 from books.

Solution: Friend club Income and expenditure account (for the year ended 31st march , 2018)

Expenditure	Rf	Amount	Income	Rf	Amount
To rent and taxes	86,100		by subscription Received	2,20,000
Add: outstanding at the end	18,000		by Add: outstanding at the end	7,000
less; outstanding in the beginning	18,000	86,100	by less: outstanding in the beginning	6,000	2,21,000
To salaries		1,09,000	by entrance fees		55,200
To electricity charges		6,200	by donation		1,06,100
To general expenses		12,500	by interest		4,100
To office expenses		45,000	by surplus from cultural programme		8,200
To depreciation /books		30,000
To depreciation/ furniture		5,000
To surplus –excess of Income over expenditure		1,00,800
		3,94,600			3,94,600

balance sheet as at 31st march ,2018

liabilities	Rf	Amount	Assets	Rf	Amount
capital In the beginning	4,87,300		cash in hand		43,000
Add: surplus	1,00,800	5,88,100	cash at bank		61,900
Rent outstanding		18,000	Investments		1,40,000
			books in the beginning	3,00,000
			Additions	31,200
			less: depreciation	30,000	3,01,200
			furniture	58,000
			less depreciation	5,000	53,000
			subscription outstanding		7,000
		6,06,100			6,06,100

working note: calculation of opening capital fund:

balance sheet as at 1st april, 2017

liabilities	Amount	Assets	Amount
Rent outstanding	18,000	cash in hand	1,41,300
capital fund	4,87,300	subscription outstanding	6,000
		books	300,000
		furniture	58,000
	5,05,300		5,05,300