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 31-3-188000
Add: subscription received in advance on 31-3-175000
Total 63,000
less: subscription outstanding on 1-04-176,000
less: subscription received in advance on 31-3-183000
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:

particularAmount
Total subscription Received during the yr.1,50,000
Add: sub, outstanding for 2015-165,800
sub: Received in advance on 31-3-154,500
Total1,60,300
less: sub received in advance on 31-3-165,100
less: sub outstanding on 31-3-156000
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

particularAmount
Total salaries paid in 2016-1710,200
Add: outstanding salaries on 31-3-17750
prepaid salary on 31-3-161,200
Total 12,150
less: outstanding on 31-3-16900
less: prepaid on 31-3-17600
salaries Dr. to Income & exp A/c for 2016-1710,650

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

Balance sheet as at 31st march, 2018

liabilities Rfamount Assetsamount
capital fund by outstanding subscription (for governor’s party)30,000
opening balance 10,00,000pavilion -in-progress (cost incurred)20,00,000
Add: transferred from pavilion fund 20,00,00030,00,000
pavilion fund
opening balance 40,00,00
Add: Donation for pavilion 10,00,00
less: transferred to capital fund 20,00,00030,00,000

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 RspaymentsRs
To subscription 100,000

Additional Information

particularas at 31st march 2017as at 31st march 2018
subscription outstanding 20,00040,000
subscription Received in advance 30,00020,000

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

Expenditure RsIncome RfRs
by subscription 100,000
Add; subscription outstanding on 31-3-201840,000
Add: subscription received in advance on 31-3-201730,000
Total 1,70,000
less; subscription Received in advance on 31-3-2018 20,000
less; subscription outstanding on 31-3-201720,000130,000
liabilities amountAssetsamount
subscription Received in advance 20,000subscription 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.

particularAmount
stock of stationery on 1st april, 201730,000
creditors for stationery on 1st april, 201720,000
amount paid for stationery during the year ended 31st march , 20181,08,000
stock of stationery on 31st march , 20185,000
creditors for stationery on 31st march, 201813,000

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 RfAmount
Amount paid for stationery during the year ended 31st march ,20181,08,000
Add: stock of stationery on 1st april, 201730,000
Add: creditors for stationery on 31st march, 201813,00043,000
Total 1,51,000
less; stock of stationery on 31st march , 20185,000
less: creditors for stationery on 1st april , 201720,00025,000
stationery consumed during 2017-181,26,000

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 AmountpaymentsAmount
To cash in hand(opening)45,000by salaries4,95,000
To cash at bank (opening)12,60,000by stationery 89,700
To subscriptions15,24,000by billiard table 5,80,500
To Donation7,20,000by Investments6,19,800
To Interest on Investment18,000by Miscellaneous expenses75,000
To Entrance fees1,80,000by furniture12,30,000
To interest Received from bank63,000by Insurance premium27,000
To sale of old Newspapers9,000by cash in hand(closing)33,000
by cash at bank (closing)6,69,000
38,19,00038,19,000
  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 20181st april 2017
stock of stationery 30,0005,000
creditors for stationery 40,00026,000
advance for stationery paid in 2017-187,000
advance paid for stationery carried from 2016-175,000

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

ExpenditureRfAmountIncome RfAmount
To salaries4,95,000by subscription 15,24,000
To stationery (WN 1)76,700Add; Arrears1,35,000
To Miscellaneous expenses 75,000less: Advance 39,00016,20,000
To insurance premium27,000by entrance fees 1,80,000
less: prepaid 3,00024,000by donation 7,20,000
To surplus19,39,300by Interest on Investment18,000
(excess of Income over expenditure)by interest received from bank 63,000
by sale of old newspaper9,000
26,10,00026,10,000

Working notes:

RfAmount
consumption of stationery during the year amount paid for stationery89,700
Add”: stock of stationery on 1st april, 20175,000
Add: advance paid in 2016-175,000
Add: creditors for stationery (31st march, 2018)40,00050,000
1,39,700
less: stock of stationery (31st march, 2018)30,000
less: advance paid 2017-187,000
less: creditors for stationery 1st april, 201726,00063,000
stationery consumed during the year76,700

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 AmountpaymentsAmount
To balance b/d (cash in hand)1,41,300by rent and taxes 86,100
To entrance fees55,200by salaries1,09,000
To subscription 2,20,000by electricity charges62,00
To Donations 1,06,100by general expenses 12,500
To interest 4,100by books 31,200
To surplus from cultural programme 8,200by office expenses45,000
by Investments1,40,000
by balance c/d
cash in bank61,900
cash at hand 43,000
5,34,9005,34,900

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)

ExpenditureRfAmountIncome RfAmount
To rent and taxes86,100by subscription Received 2,20,000
Add: outstanding at the end 18,000by Add: outstanding at the end 7,000
less; outstanding in the beginning 18,00086,100by less: outstanding in the beginning 6,0002,21,000
To salaries1,09,000by entrance fees 55,200
To electricity charges6,200by donation 1,06,100
To general expenses 12,500by interest 4,100
To office expenses 45,000by surplus from cultural programme8,200
To depreciation /books30,000
To depreciation/ furniture5,000
To surplus –excess of Income over expenditure1,00,800
3,94,6003,94,600

balance sheet as at 31st march ,2018

liabilities RfAmountAssetsRfAmount
capital In the beginning 4,87,300cash in hand 43,000
Add: surplus1,00,8005,88,100cash at bank61,900
Rent outstanding 18,000Investments1,40,000
books in the beginning 3,00,000
Additions31,200
less: depreciation 30,0003,01,200
furniture58,000
less depreciation 5,00053,000
subscription outstanding 7,000
6,06,1006,06,100

working note: calculation of opening capital fund:

balance sheet as at 1st april, 2017

liabilitiesAmountAssetsAmount
Rent outstanding 18,000cash in hand 1,41,300
capital fund 4,87,300subscription outstanding 6,000
books 300,000
furniture58,000
5,05,3005,05,300
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