Chapter - 5: Toppers Institute N.P.O.-Questions

Toppers Institute N.P.O.
-Questions
Chapter – 5
5.1 C.A Avinash Gupta | 9212707592

Toppers Institute N.P.O.-Questions
Non Profit Organisation

 Quick View
Part -A Conceptual Question

• Problem – 1 to 12
Part-B Advance Questions

Part-C Super Advance Questions

Part-D Examination Questions


Financial
statement of
Non-profit organisation
{QUICKVIEW}
MEANING
Formed For Income spend Prohibits the

the purpose of in promoting Dividends
useful objects the objects
BOOK USUALLY KEPT
1. Receipt and 2. Income and 3. Balance

Payment A/c Expenditure A/c Sheet

(1) Receipt and Payment Account
Receipts and Payments Account

for the period ending on….
Receipts Rs. Payments Rs.
To Balance b/d By Balance b/d (banks overdraft)
Cash By Annual Sports Expense
Bank By Salaries & Wages
To Subscriptions By Rent Rates & Taxes
For previous year By Insurance
For current years By Furniture
For next year By Sports Equipments
To Entrance Fees By Books & Periodicals
To Donations for buildings/ By Audit Fees
Tournament By Printing & Stationery
To General donations By Honorarium
To Life Membership Fees By Bank Charges
To Legacy By Postage & Telegrams
To Grant from Government By Water & Electricity
To Contribution for Annual By Conveyance & Travelling
Dinner By Repairs & Maintenance
To Dividend By Sundry expenses
To Interest By 12% Investments
To Rent By Balance c/d :
To Receipts on Annual Sports Cash
To Sale of Old Sports Materials Bank
To Sale of Old Magazines
To Sundry Receipts
To Balance c/d (Bank overdraft)

(2) Income and Expenditure Account

Income and Expenditure Account
for the period ending on…
Expenditure Rs. Income Rs.
To Salaries and Wages By Subscription Received
Paid Add: Outstanding at the end
Add: Outstanding at the end Less: Advance at the end
Add: Advance at the beginning
Less: Prepaid at the end Less: Outstanding in beginning
Add: Prepaid in the beginning By Entrance fees
(only that portion which is to be
Less :Outstanding in beginning traded as revenue)
By General Donations
To Rent rates and Taxes By Life Membership Fees
To Insurance Premium (Only that portion which is to be
To Depreciation on : treated as revenue)
– Furniture By Profit from Annual Dinner :
– Sports Equipments Contribution ……
To Books and Periodicals Less: Expenses …...
To Audit Fees By Profit from Annual sports
To Printing & Stationery (Receipts – Expenses)
To Honorarium By Profit on sale of provision
To Bank Charges (Sales + Closing Stock –
To Postage & Telegram Purchases – Opening Stock)
To Electricity and Water By Rent of Club Hall
To Conveyance Travelling By Dividend and Interest
To Sundry Expenses By Sundry Receipts
To Surplus By Deficit
(i.e. excess of income over (i.e. excess of expenditure over
expenditure) income)
(3) Balance Sheet of… as at….
Liabilities Rs. Assets Rs.

Capital Fund : Fixed Assets:
Opening Balance Building
Add: Surplus Opening Balance
(or Less Deficit) Add: Additions xxx
Add: Entrance Fees Less: Depreciation
(to the extent capitalized) Furniture
Add: Life Membership Opening Balance
Subscription Add: Additions xxx
(to the extent Capitalized) Less: Book Value of asset sold xxx

Add: Amt. of capital Expenditure Less: Depreciation

Transferred from A Special Sports Equipment
Fund (e.g. Building Fund ) Less: Depreciation
Prize Fund : Investments:
Opening Balance Prize Fund Investments
Add: Donation for prizes Building Fund Investments
Add: income from 10% Govt. Securities
Prize Fund Investments Fixed Deposits
Less: Expenses Current Assets:
Building Fund: Sports Material
Add: Donation for building Outstanding subscriptions
Add: Income from Accrued Interest
Building Fund Investments Accrued Rent
Less: Transfer to capital Fund Cash in hand
Current Liabilities: Cash in bank
Subscription received in Advance
Outstanding Expenses
Bank Overdraft
Creditors
TREATMENT OF SPECIAL ITEM
1. 2. 3. 4. 5. 6.
Subscription Entrance Donation Aid from Expenses Profit &
Fee/ & Govt. and loss from
Admission Legacies other Trading

1. Subscription
Periodical Life
Subscription Membership
Subscription
Treated as
Revenue
Treated as Capital
Receipt
Transferred to Life
Membership fund A/c
Shown in B/s till the membership Normal annual

ceases when the same may be subscription is treated as
transferred to the capital fund A/c revenue receipt
Transferred out of life membership fund

A/c to Income & Expenditure A/c
 Balance Appear In B/S till

 The Amount Exhausted, Or
 The membership ceases
whichever is earlier.

Subscription Account
Particulars Rs. Particulars Rs.
To outstanding Subscription A/c By Advance Subscription A/c
(O/s Subscription in the (Adv. Subscription in the beginning)
beginning) By Bank A/c
To Income & Expenditure A/c (Total Subscription received during
(balancing figure) the current year)
To Advance Subscription A/c By Outstanding Subscription A/c
(Advance Subscription at the (Outstanding subscription at the
end) end)
2. Entrance fee /
Additional Fee
(a) (b)
Treated Treated
exclusively as exclusively as (c) (c)
revenue capital receipt (i) A Part Of (ii) Remaining
receipt and if and added to Portion (say part (say
transferred to capital fund 40%) May 60%) May
the credit of on the liabilities Treated as treated as
Income & side of the B/S Revenue Capital
Expenditure A/c Receipt Receipt

3. Donations &
Legacies
General Donation Specific Donation

and Legacies and Legacies
Small Big
For some For some
Donation Donation
Assets Expenses
Treated as Treated as
Revenue Capital
Receipt Receipt
Transferred Transferred to
to Income & Capital fund /
Expenditure General Fund
A/c

GENERAL DONATION
AND LEGACIES
Small Large
Donation Donation
*For Donation received *Treated as capital nature (Big amount)

Cash A/c Dr. Donation A/c Dr.
To donation A/c To Capital fund / General fund A/c
*Treated as Revenue nature (small *Investment purchased from donation amount
Investment A/c Dr.
amount)
To Cash A/c
Donation A/c Dr. *Interest on investment received
To I/E A/c Cash A/c Dr.
To interest on investment A/c
*Interest on investment A/c Dr.
To I/E A/c

SPECIFIC DONATION
AND LEGACIES
For some For some

Assets Expenses
1. Cash A/c Dr. 1. Cash A/c Dr.

To Donation A/c To Donation A/c
2. Donation A/c Dr. 2. Donation A/c Dr.
To Asset fund A/c To Donation fund (for which
3. Asset fund investment A/c Dr. donation is received) A/c
To Cash A/c 3. Expenses A/c Dr.
4. Bank A/c Dr. To Cash A/c
To Asset fund investment A/c 4. Donation fund A/c Dr.
5. Asset fund investment A/c Dr. To Expenses A/c
To Asset fund A/c 5. Investment A/c Dr.
(for profit on sale of investment) To Cash A/c
6. Cash A/c Dr. 6. Accrued Interest Dr.
To Interest on Asset fund Cash A/c
investment A/c To Interest on investment A/c
7. Interest on asset fund investment 7. Interest on investment A/c Dr.
A/c Dr. To Donation fund A/c
To Asset fund A/c 8. Cash A/c Dr.
8. Asset A/c Dr. To Investment A/c
To Bank A/c 9. Investment A/c Dr.
9. Asset fund A/c To Donation fund A/c
To Capital fund A/c (For profit on sale of investment)
(Amount equivalent to the value of
asset for the fund free)

4. Aid from Govt. &

Other Institution
General Aids Specific Aids
Treated as Treated as
Revenue Receipt Capital Receipt
Transferred Added to the

to Income & capital fund
Expenditure
A/c
5. Expenses
Services Consumption
(Rent, Salary, Insurance etc.) (Crockery, Stationary etc.)

Dr. EXPENSES A/c (Services) Cr.

To Prepaid Expense A/c (Opening) xxx By Outstanding Expense A/c xxx
To Cash A/c xxx (Opening) xxx
To Outstanding Expense A/c xxx By Income & Expenditure A/c xxx
(Closing) By Prepaid Expense A/c (Closing)
Dr. EXPENSES A/c (Consumption) Cr.

To Stock A/c (Opening) xxx By Creditors A/c (Opening) xxx
To Advance to Supplier (Opening) xxx By Loss A/c xxx
To Cash A/c xxx By Drawings A/c xxx
To Creditors A/c (Closing) By Income & Expenditure A/c xxx
By Advance to Suppliers (Closing) xxx
By Prepaid Expense A/c (Closing) xxx
6. Profit & Loss from

Trading Activities
Sometimes In such case To ascertain Such p/l

NPO Carry on separate the P/L from should be
trading trading A/c for each of sun transferred to
activities like each of trading I/ S A/C
a restaurant trading activities and
run by club activities
should be
prepared
Note: - For missing credit purchase and credit sale, total creditor and total debtor
should be prepared respectively.

Type of Questions
1. 2. 3. 4. 5. 6.
I/C B/s of R/E from B/s of Based Based
from NPO & i/e A/c NPO & Quest of Question
R/C I/C A/C from R/E Profession- Educational
A/C from R/E & I/E A/c Institutions
al Firm
A/c

Part – A
Conceptual Questions
Problem - 1
Given information prepare Receipts & Payments A/c of CA Club, Delhi for the year ending
on Dec 31,20X2
Rs. Rs.
Cash as at 1.1.20X2 1,025 Sale of Old Bats etc. 50
Subscription received 2,150 12% General Investments
(including Rs 40 for 20X1& (made on 1 .8.20X2) 500
Rs. 60 for 20X3) 12% Tournament Fund
Upkeep of fields 220 Investments
Admission Fees 40 (made on 1.8.20X2) 1,500
Salaries 600 Tournament Expenses 1,200
Drama Expenses 450 Sale of old furniture
Life Membership Subscription 100 (cost Rs 100) 60
Newspapers purchased 150 Bats and Balls purchased 700
Books Purchased 100 Proceeds of drama tickets 950
Donations received Interest on 12% General Invest.
(on 1 .8.20X2) 500 Received 12.50
Subscription for Tournament Interest on 12% Tournament
received Fund & Investment received 37.50
(on 1.8.20X2) 1,500 Printing & Stationery 100
Municipal Taxes 40 Furniture 250
Charity given 350 Subscription received for
Sale of old newspapers 45 Governor’s Party 3,450
Problem - 2
Case (a) Subscription received during the year 20X2 Rs 60,000. How will you show the
relevant items in the final accounts
20X1 20X2
Outstanding Subscription Rs. 40,000 Rs.30,000
Advance Subscription Rs. 90,000 Rs. 20,000
Case (b) Compute the income from subscription for the year 20X2 from the following
particulars relating to a club:
1.1 .2 0X2 31.12.20X2
Outstanding subscription Rs 9,500 Rs. 7,000
Advance Subscription Rs 2,800 Rs. 5,200

Subscription received during 20X2 Rs. 1,48,900
Case (c) How will you deal with the following items while preparing the Income &
Expenditure A/c for the year ended Dec 31, 20X2 & the B/s as on that date?
Dr. An Extract of Receipts and Payments Account Cr.
To Subscription
20X1 250
20X2 1,000 1450
20X3 200
Information: The club has 50 members, each paying annual subscription of Rs 25.
Subscriptions outstanding on December 31, 20X2 were Rs 300.
Case (d) From the following extracts of Receipts & Payments A/c and the additional
information, you are required to calculate the Income from Subscriptions for
the year ending Dec 31, 20X2 and show them in the Income &Expenditure
A/c, and the B/s of a Club.
An Extract of Receipts & Payments Account
Dr. for the year ended 31sJ Dec. 20X2 Cr.
To Subscriptions
20X1 5,000
20X2 30,000 41000
20X3 6,000
Information:
(i) Subscription outstanding on 31.12.20X1 Rs 6,000
(ii) Subscription outstanding on 31.12.20X2 • Rs 5,000
(iii) Subscription received-in-advance on 31.12.20X1 Rs 6,000
Case (e) How will you deal with the following case while preparing the final accounts
for the year 20X2:
(a) Subscription received during 20X2: for 20X1 Rs 5,000, for 20X2 Rs.
30,000, for 20X3 Rs 6,000
(b) Subscription received in advance as at 31.1 2.20X1 Rs 6,000
(c) Subscription outstanding as at 31. 12.20X1 Rs 6,000
(d) Subscription outstanding for the year 20X2 Rs 4,000
Case (f) Prepare the Subscription Account from the following items for the year
ending on March 31, 20X3:
(a) Subscription in arrears on 31.3.20X2 Rs 500
(b) Subscription received in advance on 31 .320X2 Rs 1100
(c) Total Subscription received during 20X2-20X3 (including Rs 400 for 20X1-
20X2, Rs20X1 – 20X1, Rs.900 for 20X3 – 20X4 and Rs.300 for 20X4 –
20X5), Rs.35,400.
(d) Subscription outstanding for 20X2-20X3 Rs 400

Case (g) From the following extracts of the Receipts and Payments Account and the
additional information, you are required to compute the income from
subscription for the year ending on. December 31, 20X2 and show the
subscription items in the Income and Expenditure Account and the B/s as on
31.12.20X2
An Extract of Receipts and Payments Account
for the year ending on 31st Dec., 20X2
To Subscriptions
9,000
20X1
1,34,400
20X2
5,200
20X3
Information: Subscription outstanding as on 31.12.20X1 Rs 9,200. Subscription received

in advance as on 31.12.20X1. Rs 2,800 (including Rs 800 for 20X2). There are 1,440
members each paying an annual subscription of Rs 100.
Case (h) How will you deal with the following items while preparing the Income and
Expenditure Account for the year ending on 31st December, 20X3 and the
Balance Sheet as on that date?
Subscription outstanding as on 31.12.20X2: Rs 9,500 (including Rs 500
for 20X1) Subscription received in advance as on 31. 12.20X2: Rs 3,000
(including Rs 200 for 20X4)
Subscription received during 20X3: for 20X1 Rs 400, for 20X2 Rs
8,900, for 20X3 Rs 1,34,400, for 20X4 Rs 4,000; for 20X5 Rs 1,200.
Subscription outstanding as on 31.12.20X3: Rs 7,000.
Case (i)
Rs.
Subscription income for 1996-97 as per income & Expenditure Account 82,000
Advance subscription received in 1995-96 4,000
Subscription outstanding at the end of 1996-97 (including 1,000 for 95-96) 9,500
Advance subscription received for 1997-98 2,000
Subscription written off during 1996-97 500
Subscription receivable on 1.4.96 5,000
Subscription collected (1996-97) by the secretary but not deposited 1,000
Prepare a statement showing subscription received in 1996-97 as per receipts & payments
account.
{Ans. Subscription Receipt. Rs.74,000 (ICWA-Inter)}
Problem - 3
How will you deal with the Entrance fees while preparing the final accounts for the year
ending on 31st March 20X2 in each of the following alternative cases:
Case (a) During the year 20X1-20X2, Entrance fees received Rs 1,00,000
Case (b) During the year 20X1-20X2 Entrance fees received Rs 1,00,000. The
accounting policy of the club is to treat the entrance fees as of revenue
nature.
Case (c) During the year 20X1-20X2 Entrance fees received Rs 1,00,000. The
accounting policy of the club is to treat the entrance fees as of capital nature.
Case (d) During the year 20X1-20X2 Entrance fees received Rs 1,00,000. According to
accounting policy of the club, 40% of the entrance fees is to be capitalized.
There was no pending membership as on 31St March 20X2.
Problem - 4
Show how will you deal with the following items while preparing the final accounts for the
year ending on March 31, 20X2 in each of the following alternative cases:
Case (a) Prizes awarded Rs 2,000
Case (b) Prizes awarded Rs 2,000, Prize Fund as at 31.3.2OXl Rs 12,000.
Case (c) Prizes awarded Rs 2,000, Prize Fund as at 31.3.20X1 Rs 12,000, Donations
for prizes received during the year 20X1-20X2 Rs 2,800.
Case (d) Prizes awarded Rs 2,000, Prize Fund as at 31.3.20X1 Rs 12,000, Donations
for prizes received during the year 20X1-20X2 Rs 2,800, 10% Prize Fund
Investments as at 31.3.20X1 Rs 12,000. Interest received on Prize Fund
Investments Rs 1,200.
Problem - 5
Show how you will deal with the following items while preparing the final accounts for the
year ending on 31St March 20X2.
Case (a) Expenditure on Construction of Pavilion Rs 3,00,000. The construction work
is in progress and has not yet completed. Capital fund is at 31.3.20X1 Rs.
9,00,000
Case (b) Expenditure on construction of pavilion Rs 3,00,000. The construction work is
in progress and has not yet completed. Pavilion Fund as at 31.3.20X1 Rs
4,00,000 Capital Fund on at 31.3.20X1 Rs 9,00,000.
Case (c) Expenditure on construction of pavilion Rs 3,00000. The construction work is
in progress and has not yet completed. Pavilion Fund as at 31 .3.20X1 Rs
4,00,000. Donation for Pavilion received on 30.4.20X1 Rs 5,00,000, Capital
Fund as at 31.3.20X1 Rs 9,00,000.
Problem - 6
Prepare the Furniture account for the year ending on March 31, 20X2 in each of the
following alternative cases:
Case (a) Furniture as on 31.3.20X1 Rs 1,10,000, Furniture (having a book value as on
1.4.20X1 of Rs 10,000) sold at a profit of 20% on 31.12.20X1, Furniture
purchased on l.10.20X1 Rs 50,000 furniture is to be depreciated @ 10% p.a.
Case (b) Furniture as on 31.3.20X1 Rs 2,20,000. Furniture (having a book value as on
1.4.20X1 of Rs 20,000) sold at a loss of 20% on 3l.12.20X1. Furniture is to be

depreciated @ 10% p.a. Furniture costing Rs.1,50,000 was also purchased on

l.10.20X1.
Problem - 7
How will you deal with the following items while preparing the Income & Expenditure A/c
for the year ending on Mar 31, 20X2 and a Balance Sheet as on that date in each of the
following alternative cases?
Case (a) As at 1.4.20X1 As at 31.3 .2 0X2
Rs. Rs.
Creditors for Sports Materials 2,000 1,300
Stock of Sports Materials 3,000 500
During 20X1-20X2, the payment made to these creditors was Rs 10,800. There was no cash
purchase.
Case (b) As at 1.4.20X1 As at 31.3.20X2

Rs. Rs.
Amount due to suppliers of Sports Materials 15,000 9,750
Advances to suppliers of Sports Materials 5,000 3,250
Stock of Spohs Materials 15,000 2,500
During 20X1-20X2, the payment made to the suppliers of Sports Materials was Rs 54,000.
There was no cash purchase.
Case (c) As at 1.4.20X1 As at 31.3.20X2

Rs. Rs.
Creditors for Sports Materials 2,300 5,900
Stock of Sports Materials 7,500 10,000
During 20X1-20X2, the payments made to these creditors amounted to Rs 28,400 and cash
purchases amounted to 20% of total purchases.
Problem - 8
Bharat Club provides you the following information:
Stock in Restaurant on 31.3.20X1 Rs 3,900, and on 31.3.20X2 Rs 4,500, Restaurant Takings
Rs. 3,6l,600, Restaurant Purchases Rs 2,04,800, Wages (including Rs 50,000 for
Restaurant) Rs 92,300, Fuel Rs 17,700, China Glass Cutlery on 31.3.20X1 Rs 2,500,
Depreciation is to be @ 20% is to be provided on China Glass Cutlery.
REQUIRED: Show how you will deal with the above item while preparing Restaurant
Trading Account, Income & Expenditure Account and Balance Sheet.
Problem - 9
From the following Receipts & Payments A/c, prepare the Income & Expenditure A/c for the
year 31StDec, 20X2.


To Balance b/d 10,000 By Rent 6,000
To Entrance Fees: (including Rs 1,500 for
20X1 1,000 20X1)
20X2 5,000 By Insurance Premium 6,000
To Subscriptions: (including Rs 1,500 for
20X1 1,000 20X3)
20X2 9,000 By Sports Materials 5,000
20X3 500 By Sports Equipment 6,000
To Life Membership Subscription 2,000 (Purchased on 31.12.20X2)
To Donations 12,000 By 8% Fixed Deposits 12,000
To Donation for Tournament 5,000 (made on 1 .7.20X2)
To Subscription for Governor’s Party 1,500 By Tournament Expenses 1,000
To Interest on 8% Fixed Deposit 240 By Purchase of Books 2,000
To Sale of Old Sports Materials 30 By Postage Stamps 500
To Sale of Old Sports Equipments 50 By Printing & Stationery 1,500
(Book Value Rs 120) By Newspapers & Periodicals 2,000
To Locker Rents 500 By Balance c/d 6,000
(including Rs 60 for 20X1) .
To Sale of Old Newspapers &
Periodicals 180
48,000 48,000
Problem - 10
From the following information, prepare Opening and Closing Balance Sheets:
31st Dec 20X1 31st Dec 20X2
Rs. Rs.
Building (subject to 10% depreciation) 30,000 ?
Furniture (subject to 10% depreciation) — 10,000
Stock of Sports Materials 2,500 1,000
Prepaid Insurance 1,500 3,000
Outstanding Subscription 6,000 4,000
Advance Subscription 3,000 2,000
Outstanding Locker Rent — 3,000
Advance Locker Rent received — 1,000
Outstanding Rent for Godown 3,000 1,500
12% General Fund Investments 1,00,000 ?
Accrued Interest on above — 2,000
Cash Balance 500 32,000
Bank Balance 1,000 —
Bank Overdraft 1,000
Note:- Entrance Fees received Rs 10,000. Life Membership Fees received Rs 10,000,
Surplus from Income & Expenditure A/c Rs 30,000. It is the policy of the club to treat 60% of
entrance fees and 40% of Life Membership Fees as of revenue nature.

Problem - 11
The following is the Receipts & Payments A/c of the Bombay Club for the year ending 31st
Dec.20X2.
Dr. Receipts & Payments Account for the year 20X2 Cr.
To Balance b/d 300 By Rent 5,200
To Entire fees 550 By Stationery, Expenses etc. 3,068
To Subscriptions: By Wages 5,330
20X1 200 By Billiards Table 3,900
20X2 16,700 By Repairs and Renewals 806
20X3 300 17,400 By Interest 1,500
To Locker Rents 500 By Balance old 2,396
To Special Subscriptions for
Governor’s Party 3,450
22,200 22,200
Locker rents, Rs 60, related to 20X1 and Rs 90 is still owing: rent Rs 1,300 pertained to,
20X1 and Rs1,300 is still owing: stationery expenses etc., Rs 312 related to 20X1; still owing
Rs 364; subscriptions unpaid for 20X2 Rs 868; special subscriptions for Governor’s party
outstanding Rs 550. The club owned sports materials of the value Rs 16,000 on 1 Jan, 20X2.
This was valued at Rs 13,500 on 31 Dec, 20X2. The club took a loan of Rs 20,000 in
20X1.Treat Entrance Fees as of revenue nature.
REQUIRED: Prepare the Income & Expenditure Account for 20X2 and Balance Sheet as at
31 Dec 20X2.
Problem - 12
Jalan Cricket Club provides you the following formation:
Income & Expenditure Account
Dr. for the year ended 31st March, 20X2 Cr.
Expenditure Rs. Income Rs.
To Remuneration to coach 18,000 By Donation and Subscription 1,00,000
To Salaries and Wages 24,000 By Bar Room:
To Rent 23,000 Receipts 24,000
To Misc. expense 7,000 Less: Expenses 20,000 4,000
To Honorarium to Secretary 18,000 By Bank Interest 2,000
To Depreciation on Equipment 5,000 By Hire charges-Club-hall 14,000
To Surplus 25,000
1,20,000 1,20,000
Balance Sheets
Liabilities 30.03.X1 30.03.X2 Assets 30.03.X1 30.03.X2
Rs. Rs. Rs. Rs.
Capital Fund 48,000 48,000 Equipment 25,000 20,000
Add: Entrance Fees 10,000 Outstanding 6,000 6,000
Add: Surplus 25,000 subscription
Subscription in Cash in hand 4,000 2,000

advance 4,000 3,000 Cash at bank 2,500 10,000

Misc. expenses 5,500 5,000 Fixed Deposit 20,000 50,000
Salaries & Wages — 1,000 Accrued Hire charges
Honorarium to of Club Hall --- 2,000
Secretary Prepaid Rent 1,000 2,000
1,000 —
58,500 92,000 58,500 92,000
Part – b
Advance QUESTIONS
Problem - 13
Following is the Trial Balance of the VCA on 31st March 20X2:
Dr. Cr.
Rs. Rs.
Land 50,000 Capital Fund 15,60,000
School Building 15,00,000 Tuition Fees Received 25,10,000
Furniture 3,00,000 Salaries Payable 1 75,000
Salaries: Prize Fund. 2,00,000
Teaching Staff 12,00,000 Tournament Fund 300,000
Adm. Staff 2,60,000 General Reserve Fund 2,00,000
Investments 7,00,000 Interest Received on Investments 77,000
Stationery, Postage 1,73,000 Donation for School Hall 1,50,000
Lighting 36,000
General Expenses 65,000
Prizes awarded 20,000
Tournament Expenses 30,000
Library Books 3,75,000
Bank Balance 4,63,000
51,72,000 51,72,000
Depreciation is to be provided as follows:
Building 2%, Furniture 10% and Library Books 20%.
The investments were made against the various funds commonly. Prepare the
Income and Expenditure A/c for 20X1-20X2 and the Balance Sheet as at March 31,
20X2.
Problem - 14
Prepare Income & Expenditure A/c and B/s of Avinash Sports Club, Delhi from the
following information.
Receipts and Payments Account of Avinash Sports Club, Delhi
Dr. for the year ending on 31st March, 20X2 Cr.

Receipts Rs. ‘000 Payments Rs. ‘000

To Balance b/d: By Balance b/d: 3,000
Cash 150 (Bank Overdraft)
Stamps 50 By Insurance 300
To Subscriptions 7,000 (paid up to 30.6.20X2)
To Entrance fees 200 By Miscellaneous Expenses 3,875
To Life Membership By Postage Expenses 200
Subscription 500 By Refreshment Room 2,100
To General Donations 2,000 Expenditure
To Cricket Fees 250 By Furniture 600
To Refreshment Room (Purchased on 1.10.20X1)
Receipts 3,100 By Honorarium to Cricket coach 600
To Sale of Old periodicals 72 By Sports Equipments
To Interest on Govt. (on 1.10.20X1) 2,200
Securities(TDS.@ 20%) 144 By 10% RBI Tax Free Bonds
To Donation for Club (on 1.1.20X2) (Pavilion) 10,000
Pavilion (on 1.1.20X2) 10,000 By Balance c/d: ‘
Cash in hand 52
Cash at bank 514
Stamps 25 591
23,466 23,466
Information:
Particulars 1.4.20X1 31.3.20X2
Rs ‘000 Rs ‘000
Club Pavilion Fund 5,000 ?
Sports Equipments 4,500 ?
Furniture 3,200 ?
Stock of Foodstuff 120 80
6% Government Securities (Face Value Rs 30,00,000) 2,580 ?
Subscription Outstanding 600 250
Subscription in Advance - 300
Outstanding Miscellaneous Expenses 200 250
Accounting policies followed by Tulsian Sports Club, Delhi are, provide as under:
(a) The sports equipments and furniture are to be depreciated @ 25% and 19% p.a.
respectively.
(b) One half of the entrance fees and life membership fee are to be treated as income.
Problem - 19
The following informations were obtained from the books of Delhi Club as on 31.3.20X1 at
the end of the first year of the Club. You are required to prepare Receipts & Payments A/c,
Income and Expenditure A/c for the year ended 31.3.20X1 and a Balance Sheet as at
31.3.20X1 on mercantile basis:
i) Donations received for Building and Library Room Rs 2,00,000
ii) Other revenue income and actual receipts:

Revenue Income Actual Receipt

Rs. Rs.
Entrance Fees 17,000 17,000
Subscription 20,000 19,000
Locker Rents 600 600
Sundry Income 1,600 1,060
Refreshment Account — 16,000
iii) Other revenue expenditure and actual payments:

Revenue Expenses Actual Payments
Rs. Rs.
Land (cost Rs 10,000) — 10,000
Furniture (cost Rs 1,46,000) — 1,30,000
Salaries 5,000 4,800
Maintenance of Playgrounds 2,000 1,000
Rent 8,000 8,000
Refreshment Account — 8,000
Donations to the extent of Rs 25,000 were utilised for the purchase of Library Books,
balance was still utilised. In order to keep it safe. 9% Govt. Bonds of Rs 1,60,000 were
purchased on 31 .3.20X1. Remaining amount was put in the Bank on 31 .3.20X1 under the
term deposit. Deprecation at 10% p.a. was to be provided for the whole year on Furniture
and Library Books.
{Ans: Surplus:15,100, B/s:3,40,440}
Problem - 20
The Receipts and Payments account of Trustwell Club prepared on 31st March, 20X3 is as
follows:
Receipts and Payments Account
To Balance b/dl 450 By Expenses 6,300
To Annual Income from Subs. 4,590 (including Payment for sports
Add: O/s of last year material Rs 2,700)
received this year 180 By Loss on Sale of Furniture 180
4,770 (cost price Rs 450)
Less: Prepaid of last year 90 4,680 By Balance c/d 90,450
To Other fees 1,800
To Donation for Building
90,000
96,930 96,930
Additional Information:
Trustwell club had balances as on 1.4.20X2:
Furniture Rs 1,800; Investment at 5% Rs 27,000; Sports material Rs 6,660;
Balance as on 31.3.20X3: Subscription Receivable Rs 270; Subscription received in advance
Rs 90; Stock of sports material Rs 1,800. Do you agree with above Receipts and Payments
account? If not, prepare correct Receipts and Payments account and Income and

Expenditure account for the year ended 31st March, 20X3 and Balance Sheet on that date.
{Ans: Surplus: 3,600, B/s: 1,22,490}
Problem - 21
The following balances are obtained from the books of Kanpur Cricket Club as on 31st
March 1997 and 31st March 1998.
31-3-1997 31-3-1998
Building 80,000 85,500
Furniture 40,000 30,600
Advance Subscription 1,500 1,000
Arrears of Subscription 3,000 5,000
Prepaid Expenses 800 1,000
Outstanding Expenses 3,000 1,200
Sports Equipments 24,000 21,600
Investments — 12,000
Books 15,000 16,200
Cash 16,000 17,100
Consider the following information relevant to the year 1997-98:

(i) Depreciation provided for the year : Rs.
Buildings 4,500
Furniture 3,400
Sports Equipments 5,400
Books 1,800
(ii) Some old furniture standings in the books for Rs. 6,000 on 1st April 1997 was sold for.
Rs. 4,000 on the same date.
(iii) The club had 300 members on 31st March 1998 as per the register or members, No
fresh members were admitted during the year but 10 members left the club on 1st
October 1997;
(iv) Subscription payable – Rs. 15 per month
(v) Donation received for Rs. 5,000 has been capitalised.
(vi) Considerable Expenses were paid during the year.
You are required to show the receipts and payments account and the income and
Expenditure Accounts for ended 31st March 1998;
{Ans. Cash in hand 17,100; Excess of 7,500; Total B/s 1,78,800}
Part – c
Super Advance
questions

Problem - 22
Dr. Arun Gupta’s Receipts and Payments for the year ending on 31st March 20X2 was as
follows:
To Balance b/d 66,100 By Rent 45,000
To Fees 2,14,200 (for 18 months to 30.6.20X2)
To Miscellaneous Receipts 200 By Telephone Charges 4,500
To Sale of old Equipment 4,000 By Salaries to assistants 33,000
By Journals etc. 1,000
By Library Books 5,000
(Purchased on 1.7.20X1)
By Medical Equipments 8,000
By Furniture 7,000
(Purchased on 1.10.20X1)
By Purchases of Medicines 43,000
By Conveyance Expenses 50,000
By Drawings 60,000
By Misc. Expenses 1,000
By Balance c/d 27,000
2,84,500 2,84,500
Information:
(a) Fees outstanding: on 31.3.20X1 Rs 2,000, on 31.3.20X2 Rs 5,000
(b) Stock of Medicines: on 3l.3.20X1 Rs 10,000, on 31.3.20X2 Rs 18,600
(c) Creditors for Medicines: on 31.3.20X1 Rs 100, on 31.3.20X2 Rs 300
(d) Medical Equipment on 31.3.20X1 Rs 50,000.Medical Equipment was sold as well as
purchased on 1st Jan. 20X2 the cost of the equipment sold being Rs 6,000.Equipment
is subject to dep. @ 20% pa.
(e) Furniture on 31 .3.20X1 Rs 5,000, Library Books on 31 .3.20X1 Rs 1,000 Depreciate
furniture by 10% and Library Books by 20%.
(f) Salary to assistant still payable is Rs 3.000.
(g) 40% of conveyance is for domestic purposes.
REQUIRED: Prepare the Receipts and Expenditure Account of Dr. Arun for the year 20X1
& 20X2 and the Balance Sheet as at 31.3.20X2.

Problem - 26
The following is the Receipts &Payments Account of Sydney Club for the year ended on 31st
Mar, 20X2:
Opening Balances: Salaries 1,20,000
Cash 10,000 Creditors 15,20,000
Bank 3,850 Printing and Stationery 70,000
Subscription Received 2,02,750 Postage 40,000
Entrance Donation 1,00,000 Telephones and Telex 52,000
Interest Received 58,000 Repairs and Maintenance 48,000
Sale of Assets 8,000 Glass and Table Linen 12,000
Miscellaneous Income 9,000 Crockery and Cutlery 14,000
Receipts at: Garden Upkeep 8,000
Coffee room 10,70,000 Membership Fees 4,000
Wines and Spirits 5,10,000 Insurance 5,000
Swimming Pool 80,000 Electricity 28,000
Tennis Court 1,02,000 Closing Balances:
Cash 8,000
Bank 2,24,600
21,53,600 21,53,600
The Assets and Liabilities as on l.4.20X1 were as follows:

Fixed Assets (net): Rs 5,00,000; Stock: Rs 3,80,000; Investment in 12% Tax free
Government Securities: Rs 5,00,000; Outstanding Subscription: Rs 12,000; Prepaid
Insurance: Rs 1,000; Sundry Creditors: Rs 1,12,000; Subscription received in advance: Rs
15,000, Entrance Donation Received pending membership: Rs 1,00,000; Gratuity Fund: Rs
1,50,000.
The following adjustments are to be made while drawing up the Accounts:
(a) Subscription received in advance as on 31st March, 20X2 was Rs 18,000.
(b) Outstanding Subscription as on 31st March, 20X2 was Rs 7,000.
(c) Outstanding Expenses are: Salaries: Rs 8,000 and Electricity: Rs 15,000.
(d) 50% of the Entrance Donation was to be capitalised. There was no pending
membership as on 31stMar,20X2
(e) The cost of assets sold net as on 1.4.20X1 was Rs 10,000.
(f) Depreciation is to be provided at the rate of 10% on assets.
(g) A sum of Rs 20,000 received in October 20X1 as Entrance Donation from an
applicant was to be refunded as he had not fulfilled the requisite membership
qualifications. The refund was made on3.6.20X2.
(h) Purchases made during the year amounted to Rs 15,00,000.
(i) The value of closing stock was Rs 2,10,000.
(j) The club as a matter of policy charges off to Income and Expenditure Account all
purchases made on Account of crockery, cutlery, glass and linen in the year of
purchase. You are required to prepare an Income and Expenditure Account for the
year ended on 31st March, 20X2 and the Balance Sheet as on 31st March, 20X2
along with necessary workings.
{Ans: Deficit: 30,250, B/s: 13,92,600}

Part – d
Examination questions
Problem - 27
Following is the Receipts and Payments Account of Mayur Club for the year ended 31st
March, 2008:
Opening balance (1.4.2007) Payments:
Cash on Hand 39,100 Sports materials 3.04.500
Cash at Bank 50,000 Salaries 3,15,000
Receipts: Equipment Purchased on 60,000
Subscriptions 1.10.2007
For the year 2006-07 18,000 Bank fixed deposit on 31.3.2008 1,50,000
For the year 2007-08 9,63,000 Rent 1,48,500
For the year 2008-09 4,500 Ground maintenance 22,120
Interest on Bank Insurance 38,400
Fixed deposits @ 10% 45,000 Stationery 3,450
Cash on Hand 31,750
Cash at bank 40,000
11,19,600 11,19,600
Following additional information is provided to you:

(i) The Club has 220 members The annual subscription is Rs. 4,500 per member.
(ii) Depreciation to be provided on Furniture at 10% p.a. and on Sports equipment at
15% p.a.
(iii) On 31st March, 2008, stock of sports material in hand (after members use during
the year) is valued at Rs. 78,000 and stock of stationery at Rs. 3,150. Rent for 1
month is outstanding. Unexpired insurance amounts to Rs. 9,600.
(iv) On 31st March, 2007 the club had the following Assets:
Furniture Rs. 2,70,000
Sports equipment Rs. 1,80,000
Bank fixed deposit Rs. 4,50,000
Stock of Stationery Rs. 1,500
Stock of sports material Rs. 73,500
Unexpired insurance Rs. 8,400
Subscription in arrear Rs. 22,500
Note: There was no liability on 31.3.2007.
You are required to prepare:

(i) Income and Expenditure Account; and
(ii) Balance Sheet as at 31st March, 2008. [May-2008]

Problem - 28
Following is the Receipts and Payments Account of Nanoo Club for the year ended 31st
March, 2009:
Receipts Amount (Rs.) Payments Amount (Rs.)
Opening Balance: Salaries 1,20,000
Cash 10,000 Creditors 15,20,000
Bank 3,850 Printing and Stationery 70,000
Subscription received 2,02,750 Postage 40,000
Entrance donation 1,00,000 Telephone and Fax 52,000
Interest received 58,000 Repairs and Maintenance 48,000
Sale of Fixed assets 8,000 Glass and Table linen 12,000
Miscellaneous Income 9,000 Crockery and Cutlery 14,000
Receipts at coffee room 10,70,000 Garden upkeep 8,000
Wines and Spirits 5,10,000 Membership fees 4,000
Swimming Pool 80,000 Insurance 5,000
Tennis court 1,02,000 Electricity 28,000
Closing Balance:
Cash 8,000
Bank 2,24,600
21,53,600 21,53,600
Following additional information is provided to you:

(i) Assets and liabilities as on 1.4.2008 were as follows:
Rs.
Fixed assets (Net) 5,00,000
Stock 3,80,000
Investments in 12% government securities 5,00,000
Outstanding subscription 12,000
Gratuity fund 1,50,000
Prepaid insurance 1,000
Sundry creditors 1,12,000
Subscription received 15,000
Entrance donation received pending membership 1,00,000
(ii) Subscription received in advance as on 31.3.09 was Rs. 18,000.
(iii) Outstanding subscription as on 31.3.09 was Rs. 7,000
(iv) Outstanding expenses as on 31.3.09 are:
Salaries : Rs. 8,000
Electricity : Rs. 15,000
(v) 50% of the entrance donation was to be capitalized. There was no pending
membership as on 31.3.09.
(vi) The cost of assets sold as on 1.4.08 was Rs. 10,000.
(vii) Depreciation was provided @ 10% p.a. on fixed assets on written down value basis.
(viii) A sum of Rs. 20,000 received in October, 2008 as entrance donation from an
applicant was to be refunded, as he has not fulfilled the requisite membership
qualification. The refund was made on 3.6.09.
(ix) Purchases made during the year 2008-09 amounted to Rs. 15,00,000.
(x) The value of closing stock as on 31.3.09 was Rs. 2,10,000.

(xi) The Club as a matter of policy charges off to Income and Expenditure account, all
purchase made on account of crockery, cutlery, glass and linen in the year of
purchase.
You are required to prepare:

(i) Income and Expenditure account for the year ended 31st March, 2009.
(ii) Balance Sheet as on 31st March, 2009. [May-2009]
Problem - 29
Omshanti Club has 500 members with annual fee of Rs. 1,000 per member. At the end of
the accounting year, accountant noticed that 40 members have not paid annual fee and 70
members had paid fee in advance. Help the accountant to compute Cash receipts of annual
fee for the year. [Nov-2009]
Problem - 30
The Income and Expenditure Account of City Sports Club for the year ended 31st March,
2009 was as follows:
Expenditure Amount (Rs.) Income Amount (Rs.)
To Salaries 1,20,000 By Subscriptions 1,60,000
To Printing and Stationery 6,000 By Entrance Fees 10,000
To Rent 12,000 By Contribution for Annual 20,000
To Repairs 10,000 Dinner
To Sundry Expenses 8,000 By Profit on Annual
To Annual Dinner Expenses 30,000 Sports meet 20,000
To Interest to Bank 6,000
To Depreciation on Sports equipment 6,000
To Excess of Income over
Expenditure 12,000 _______
Total 2,10,000 Total 2,10,000
The above account had been prepared after the following adjustments:
Rs.
Subscriptions outstanding on 31.03.2008 12,000
Subscriptions received in advance on 31.03.2008 9,000
Subscriptions received in advance on 31.03.2009 5,400
Subscriptions outstanding on 31.03.2009 15,000
Salaries outstanding at the beginning and at the end of the financial year were Rs.
8,000 and Rs. 10,000 respectively. Sundry expenses included prepaid insurance expenses of
Rs. 1,200.
The Club owned a freehold ground valued Rs. 2,00,000. The Club has sports
equipment on 01.04.2008 valued at Rs. 52,000. At the end of the year after depreciation the
sports equipment amounted to Rs. 54,000. The Club raised a loan of Rs. 40,000 from a bank
on 01.01.2008, which was unpaid till 31.3.2009. on 31.03.2009 Cash in Hand was Rs.
32,000.

Prepare Receipts and Payments account of the Club for the year ended 31st March,
2009 and Balance Sheet as on that date. [Nov-2009]
Problem - 31
On the basis of the following informations, prepare Income and Expenditure Account for
the year ended 31st March, 2010:
Receipts and Payments Account for the year ended 31st March, 2010.
To Cash in hand (opening) 1,300 By Salaries 2,58,000
To Cash at Bank (opening) 3,850 By Rent 71,500
To Subscriptions 4,94,700 By Printing & Stationery 3,870
To Interest on 8% Govt. Bonds 4,000 By Conveyance 10,600
To Bank Interest 160 By Scooter purchased 50,000
By 8% Govt. Bonds 1,00,000
By Cash in Hand (closing) 840
By Cash at Bank (closing) 9,200
5,04,010 5,04,010
(i) Salaries paid include Rs. 6,000 paid in advance for April, 2010. Monthly salaries
paid were Rs. 21,000.
(ii) Outstanding rent on 31st March, 2009 and 31st March, 2010 amounted to Rs. 5,500
and 6,000 respectively.
(iii) Stock of printing and stationery material on 31st March, 2009 was Rs. 340; it was
Rs. 365 on 31st March, 2010.
(iv) Scooter was purchased on 1st October, 2009. Depreciation @ 20% per annum is to be
provided on it.
(v) Investments were made on1st April, 2009.
(vi) Subscriptions due but not received on 31st March, 2009 and 31st March, 2010
totalled Rs. 14,000 and 12,800 respectively. On 31st March, 2010 subscriptions
amounting to Rs. 700 had been received in advance for April, 2010. [May-2010]
Problem - 33
The following is the Receipt and payment Account of Park View Club in respect of the year
ended 31st March 2011.
Receipts mount (Rs.) Payment Amount (Rs.)
To Balance b/d 1,02,500 By Salaries 2,.8.000
To Subscriptions: By Stationery 40,000
2008-09 4,500 By Rent 60,000
2009-10 2,11,000 By Telephone Exp. 10,000
2010-11 7,500 2,23,000 By Investment 1,25,000
To profit on sports meet 1,55,000 By Sundry Expenses 92,500

To Income from Investments 1,00,000 By Balance c/d 45,000

5,80,000 5,80,000
Additional Information:
1. There are 450 members each paying an annual subscription of Rs. 500. On 1st April,
2010, outstanding subscription was Rs. 5,000.
2. There was an outstanding telephone bill for Rs. 3,500 on 31st March, 2011.
3. Outstanding sundry expenses as on 31st March, 2010 totalled Rs. 7,000.
4. Stock of stationery:
On 31st March, 2010 Rs. 5,000
On 31st March, 2011 Rs. 9,000
5. On 31 March, 2010 building stood in the books at Rs. 10,00,000 and it was subject to
st
depreciation @ 5% per annum.

6. Investments on 31st March, 2010 stood at Rs. 20,00,000.
7. On 31st March, 2011, income accrued on the investments purchased during the year
amounted to Rs. 3,750.
Prepare an Income and Expenditure Account for the year ended 31st March, 2011 and the
Balance Sheet as at that date. [May-2011]
***~***~***~ the End~***~***~***

Chapter - 5: Toppers Institute N.P.O.-Questions

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Chapter - 5: Toppers Institute N.P.O.-Questions

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Toppers Institute N.P.O.

5.1 C.A Avinash Gupta | 9212707592

Non Profit Organisation

Part -A Conceptual Question

Part-B Advance Questions

Part-C Super Advance Questions

Part-D Examination Questions

5.2 C.A Avinash Gupta | 9212707592

Formed For Income spend Prohibits the

BOOK USUALLY KEPT

1. Receipt and 2. Income and 3. Balance

5.3 C.A Avinash Gupta | 9212707592

(1) Receipt and Payment Account

Receipts and Payments Account

5.4 C.A Avinash Gupta | 9212707592

(2) Income and Expenditure Account

(3) Balance Sheet of… as at….

Liabilities Rs. Assets Rs.

5.5 C.A Avinash Gupta | 9212707592

Add: Amt. of capital Expenditure Less: Depreciation

TREATMENT OF SPECIAL ITEM

5.6 C.A Avinash Gupta | 9212707592

Shown in B/s till the membership Normal annual

Transferred out of life membership fund

 Balance Appear In B/S till

5.7 C.A Avinash Gupta | 9212707592

5.8 C.A Avinash Gupta | 9212707592

General Donation Specific Donation

5.9 C.A Avinash Gupta | 9212707592

*For Donation received *Treated as capital nature (Big amount)

5.10 C.A Avinash Gupta | 9212707592

For some For some

1. Cash A/c Dr. 1. Cash A/c Dr.

5.11 C.A Avinash Gupta | 9212707592

4. Aid from Govt. &

General Aids Specific Aids

Transferred Added to the

5.12 C.A Avinash Gupta | 9212707592

Dr. EXPENSES A/c (Services) Cr.

Dr. EXPENSES A/c (Consumption) Cr.

6. Profit & Loss from

Sometimes In such case To ascertain Such p/l

5.13 C.A Avinash Gupta | 9212707592

5.14 C.A Avinash Gupta | 9212707592

5.15 C.A Avinash Gupta | 9212707592

Subscription received during 20X2 Rs. 1,48,900

5.16 C.A Avinash Gupta | 9212707592

Information: Subscription outstanding as on 31.12.20X1 Rs 9,200. Subscription received

5.18 C.A Avinash Gupta | 9212707592

depreciated @ 10% p.a. Furniture costing Rs.1,50,000 was also purchased on

Case (b) As at 1.4.20X1 As at 31.3.20X2

Case (c) As at 1.4.20X1 As at 31.3.20X2

5.19 C.A Avinash Gupta | 9212707592

Receipts Rs. Payments Rs.

5.20 C.A Avinash Gupta | 9212707592

5.21 C.A Avinash Gupta | 9212707592

advance 4,000 3,000 Cash at bank 2,500 10,000

5.22 C.A Avinash Gupta | 9212707592

Receipts Rs. ‘000 Payments Rs. ‘000

5.23 C.A Avinash Gupta | 9212707592

Revenue Income Actual Receipt

iii) Other revenue expenditure and actual payments:

For Donation received Treated as capital nature (Big amount)

~~~ the End~~~