DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : J. SATYANARAYANA RAO
Destination : SENIOR LECTURER
Branch : Commercial and Computer Practice
Institute : Govt. Polytechnic for Women,
Guntur
Subject : Accountancy II
Subject Code : CCP 302
Topic : Non – Trading Concerns
Duration : 50 Min
Sub Topic : Preparation of Current year’s
Balance Sheet (Continuation To
CCP302.73)
Teaching Aids : PPT, Animation
CCP302.74 1
Objectives :

On completion of this class, you would be able to:

Opening Balance Sheet for Capital Fund in the
beginning
Income and Expenditure Account for the current
year
Balance Sheet for the current year

CCP302.74 2
Recap :

 We have discussed how to prepare

 Income and Expenditure Account of the
current year
 Balance Sheet for the current year
 Understood why opening Balance Sheet is
prepared

CCP302.74 3
 Illustration
“Receipts and Payments A/c of Best Cricket club for the year ending 31st Dec 1994

Receipts Rs. Payments

Balance on 1.1.94: Maintenance of Ground
682
Cash 352 Match Expenses 1,324
Bank 2,738 Salaries 1,100
Fixed Deposit with bank at 7% Printing and Stationery 324
82
p.a. 3,000 Conveyance
Membership Subscription Purchase of Postage stamps 105
(including Rs.600 for the year Purchase of Cricket Equipment 972
1993) 4,000 Sundry Expenses 200
Entrance Fees 275 Investment in National Savings
1,600
Donations 501 Certificates
Interest on Fixed Deposit (Upto Balance on 31.12.1994:
30.6.1994) 105 Cash in hand 280
1,302
Bank
Fixed Deposit with Bank at 7% 3,000
p.a.
10,971 10,971

CCP302.74 4
Additional Information
 Salary outstanding Rs.100
 The value of unsued postage stamp is as follows: 31st
Dec.1993 Rs.75, 31st Dec.1994 Rs.90
 The stock of Cricket Equipment on 31st Dec.1994 was
Rs.321
 The arrears of membership subscription for 1994
amounted to Rs.800. All arrears for 1993 were received
during 1994
 Club Donations and Entrance Fees are to be capitalised

CCP302.74 5
Income and Expenditure A/c of Best Cricket Club(for the year ending 31-12-1994)

Particulars Amount Particulars Amount

To Maintenance of Ground 682 By Subscriptions 4,000
To Match expenses 1,324 Less: For 1993 600
To Salaries: 1,100 3,400
Add outstanding 100 1,200 Add: Outstanding for 1994 800 4,200
To Printing and Stationery 324 By Interest on Fixed Deposit 105
To Conveyance 82 Add Accrued 105 210
To Postage 105 By Deficit 143
Add Opening stock 75
180
Less Closing Stock 90 90
To Sundry expenses 200
To Depreciation on
Equipment (972-321) 651
4,553 4,553

CCP302.74 6
 Balance Sheet of Best Cricket Club as on 31-12-1994

Particulars Amount Particulars Amount

Outstanding Salaries 100 Cash in Hand 280

Capital Fund: 6,765 Bank 1,302
Add Donations 501 Fixed Deposit with Bank 3,000
Add Entrance Fees 275 Stock of Postage Stamps 90
7,541 Stock of Cricket Equipment 321
Less Deficit 143 7,398 Accrued Interest 105
Subscription outstanding 800
Investment in National Savings 1,600
7,498 7,498

CCP302.74 7
Calculation of Beginning Capital Fund

Liabilities Amount Assets Amount

Capital Fund (Balancing 6,765 Cash in hand 352

figure) Bank 2,738
Fixed Deposit with Bank 3,000
Postage Stamps
Subscriptions Receivable 75
600
6,765 6,765

CCP302.74 8
Assignment

CCP302.74 9
Receipts and Payments Account(for the Year ended 31st Dec2002)

1-1-1995 To Balance b/d Rs. 31-12-1995 By Salaries 41,600

20,500
31-12-1995 By Stationary 8,000
To Subscriptions
1996 1,600 By Rates 12,000
1995 42,200
1994 800 44,600
Sport Meet Profit 31,000 By Telephone 2,000

To Dividends on 20,000 By Investment

Investments
By (on Rs.25,000 4%
25,000
Stock at par) 18,500
Sundry Exp. 9,000
1,16,100 For 1998 Balance50c/d 1,16,100
1-1-1996 To Balance b/d 9,000 For 1999 400 450
CCP302.74 10
  Additional information
 There are 450 members each paying an annual
subscription of Rs.100 Rs.900 being in arrears
for 1994 at the beginning of 1995
 Stock of Stationery on 31st December,1994 was
Rs.4,000; at 31st December 1995 Rs.1,800
 At 31st December,1995, the rates were prepaid
to the following 31st march, the yearly charges
being Rs.12,000. A quarters charge for
telephone is outstanding, the amount accrued
being Rs.700. Expenses accruing at 31st
December, 1994 Rs.1,400

CCP302.74 11
 Additional information contd.

 On 31st December, 1999 the Building stood in the

books at Rs.2,00,000 and it is required to write off
depreciation @ 5% p.a. Investments at 31st
December,1994 were Rs. 4,00,000
 You are required to prepare an Income And
Expenditure Account for the year ended 31st Dec.
2000 and a Balance Sheet as on at that date

CCP302.74 12
 Summary :
 A Balance sheet is statement of Assets and
Liabilities of an accounting unit at given date.
 Prepared at the end of an accounting period
after income and expenditure account has been
prepared.
 It is called balance sheet, because it is a sheet
of balances of ledger accounts which are open
even after the preparation income and
expenditure account

CCP302.74 13
 In Non trading concerns, the excess of assets
over liabilities is known as capital fund.
 While preparing the balance sheet, the excess of
income over expenditure is added to the opening
capital fund
 and the excess of expenditure over income is
deducted from the opening capital fund

CCP302.74 14
For practice Refer

Advanced Accounting
- by R.L. Gupta
- M. Radhaswamy
Accountancy
- by Dr. Sm. Shukla
Financial Accounting
- by P.C.Tulsian
Accountancy
- by S.P. Jain & Narang

CCP302.74 15