DPUE

ACCOUNTANCY NOTES

CHAPTER 1
NOT FOR PROFIT
ORGANISATION

PROBLEMS AND SOLUTIONS

Q 02) Following is the Balance Sheet and Receipt and Payment Account of
Gurudeva Education Trust, Tumkur.

Balance Sheet as on 31-03-2017

Liabilities Rs. Assets Rs.
Outstanding Office Cash in hand 15,000
expenses 5,000 Furniture 25,000
Bank Loan 35,000 Buildings 70,000
Capital Fund 1,20,000 Sports Materials 20,000
Library Books 30,000
1,60,000 1,60,000

Dr. Receipt and Payment A/C for the year ended 31-03-2018 Cr.
Receipts Rs. Payments Rs.

To Balance b/d 15,000 By Office Exp.

“ Subscriptions 2016-17 5,000
2017-18 45,000 2017-18 17,000 22,000
2018-19 5,000 50,000 “ Printing &
“ Entrance Fees 8,000 Postage Exp. 600
“ Donations 12,000 “ Salary 25,000
“ Interest 5,000 “ Purchase of
Books 10,000
“ Bank Loan
Repaid 5,000
“ Subscription
to newspapers 600
“ Balance c/d 26,800
90,000 90,000

Adjustments:

i. Subscriptions outstanding Rs.5,000.

ii. Salary prepaid Rs.2,500
iii. Capitalise 50% of entrance fees and 100% of donations.
iv. Depreciate Building by 10% p.a.

Prepare:
a) Income and expenditure account for the year ending 31-03-2018.
b) Balance Sheet as on 31-03-2018.

(Answer: I & E A/C surplus Rs.11,300, Total of B/S Rs.1,82,300,)

SOLUTION (02)

Gurudeva Education Trust, Tumkur.

Dr. Income and Expenditure A/C for the year ending 31-03-2018 Cr.

Expenditure Rs. Income Rs.

To Office Expenses 17,000 By Subscription 45,000

To Printing & + outstanding of
To Salary 25,000 current year 5,000 50,000
-Prepaid 2,500 22,500 By Entrance fees
To Subscription to (50% of 8000) 4,000
newspaper 600 By Interest 5,000
To Depreciation on
Building (10%) 7,000

To Surplus 11,300
(Balancing Figure)

59,000 59,000

Gurudeva Education Trust, Tumkur.

Balance Sheet as on 31-03-2018

Liabilities Rs. Assets Rs.

Subscription received in Cash in hand 26,800
Advance 5,000 Furniture 25,000
Bank Loan 35,000 Buildings 70,000
- Paid 5,000 30,000 - Depreciation 7,000 67,000
Sports Materials 20,000
Capital Fund 1,20,000 Library Books 30,000
+ Entrance Fees 4,000 + Additions 10,000 40,000
+Donations 12,000 Outstanding Subscription 5,000
+ Surplus 11,300 1,47,300 Prepaid Salary 2,500

1,82,300 1,82,300
Q 05) Following is the Balance Sheet and Receipt and Payment Account

Malnad Sports Club, Chikkamagaluru.

Balance Sheet as on 31-03-2017

Liabilities Rs. Assets Rs.
Outstanding salary 3,200 Cash at Bank 52,400
Outstanding Rent 800 Outstanding
Subscriptions received in subscriptions 4,800
advance 4,000 Investments 5,200
Capital fund 1,30,800 Sports Materials 43,600
Furniture 32,800
1,38,800 1,38,800

Dr. Receipt and Payment A/C for the year ending 31-03-2018 Cr.

Receipts Rs. Payments Rs.

To Balance b/d 52,400 By Rent: 2016-17 800
“ subscriptions 2017-18 8,800
2016-17 4,800 “ Salaries: 2016-17 3,200
2017-18 90,200 2017-18 46,400
2018-19 4,200 2018-19 2,400
“ Donations 32,400 “ Printing 15,200
“ Entrance fees 65,200 “ General Expenses 10,800
“ Interest 2,800 “ Furniture (31-03-2018) 48,000
“ Sports Materials 57,600
“ Sale of old Tennis Balls 2,000 (01-10-2017)
“ Balance c/d 60,800
2,54,000 2,54,000
Adjustments:

a. Subscriptions outstanding Rs. 5,600.

b. Printing unpaid Rs. 1000.
c. Interest accrued Rs. 800.
d. Depreciate furniture by 10% and sports materials by 10%.
e. Capitalize 50% of donations.

Prepare:
 1. Income and expenditure account and

2. Balance sheet as on 31-03-2018.

Answer: I & E A/C surplus Rs.94,080, Total of B/S Rs.2,46,280

Solution (05)

Malnad Sports Club, Chikkamagaluru

Dr. Income and Expenditure A/C for the year ending 31-03-2018 Cr.

Expenditure Rs. Rs. Income Rs. Rs.

To Rent 8,800 By Subscription 90,200

To Salary 46,400 + outstanding
To Priniting 15,200 Of current year 5,600
+ unpaid 1,000 16,200 +Advance of
To General Last year 4,000 99,800
Expenses 10,800
To Depreciation
on Furniture By Donation 16,200
(32800x10%) 3,280 (32,400x50%)
To Depreciation on By Entrance fees 65,200
Sports Material
(opening43,600x10% 4,360 By Interest 2,800
On addition + Acrued int. 800 3,600
57600x10%x6/12) 2,880 7,240 By sale of Tennis
To Surplus Balls
(Balancing Figure) 94,080 2,000
1,86,800 1,86,800

Balance Sheet as on 31-03-2018

Liabilities Rs. Assets Rs.

Printing Unpaid 1,000 Cash at Bank 60,800
Subscriptions received in
advance 4,200 Investments 5,200
Capital fund 130,800 Sports Materials 43,600
+50% Donation 16,200 + addition 57,600
+suplus 94,080 2,41,080 1,01,200
- Depreciation 7,240 93,960

Furniture 32,800
+Purchase 48,000
 80,800
- Depreciation 3,280 77,520
Prepaid Salary 2,400
Outstanding subscriptions 5,600
Interest Acrued 800

2,46,280 2,46,280

Note : It is assumed that sale of old tennis balls is considered as revenue

receipt.

Problem for Practice:

06) Following are the Balance Sheet and Receipt and Payment Account of
Raghavendra Education Trust, Ballary.

Balance Sheet as on 31-03-2016

Liabilities Rs. Assets Rs.

Capital fund 64,000 Building 60,000
Subscriptions received in Outstanding
advance 1,200 subscriptions 400
Outstanding expenses 2,800 Outstanding rent 840
Loan 10,000 Cash at Bank 20,000
Income and Expenditure
account 3,240

81,240 81,240

Dr. Receipt and Payment A/C for the year ending 31-03-2017 Cr.

Receipts Rs. Payments Rs.

To Balance b/d 20,000 By Expenses:
“ subscriptions 2015-16 2,800
2015-16 400 2016-17 3,600 6,400
2016-17 4,200 “ Leasehold land 8,000
2017-18 300 4,900 “ Interest 800
“ Entrance fees 1,600 “ Refreshments expenses 4,000
“ Rent 1,400 “ Balance c/d 16,700
“ Income from
refreshments 8,000

35,900 35,900

Adjustments:
 a. Expenses due but not paid Rs. 1000.
b. Subscriptions due but not received Rs. 200.
c. Interest due but not paid Rs.400
d. Half of the entrance fees to be capitalized.
e. Depreciate Building by 10%.

Prepare: 1. Income and expenditure account and

2. Balance sheet as on 31-03-2017.

Answer: I & E A/C Deficit Rs.840, Total of B/S Rs.78,900