Financial Statements of Not-for-Profit Organisations

The following Trial Balance is the Trial Balance of a Proprietor as on March 31st 2024. Prepare Trading and Profit & Loss Account for the year ending March 31st 2024 and a Balance Sheet as at that date. Particulars Amount Particulars Amount Plant and Machinery 5,00,000 Capital 4,00,000 Office Furniture 26,000 Sundry Creditors 5,20,000 Opening stock 4,80,000 Sales 48,00,000 Motor van 1,20,000 Bills payables 56,000 Sundry debtors 4,57,000 Provision for doubtful doubts 25,000 Cash in hand 4,000 Return outwards 55,000 Cash at Bank 65,000 Discount received 37,000 Wages 15,00,000 Salaries 1,40,000 Purchases 21,35,000 Bills Receivable 72,000 Return inwards 93,000 Drawings 70,000 Advertisements 60,000 Factory Rent 8,000 Insurance 63,000 General Expenses 10,000 Bad debts 25,000 Discount allowed 65,000 58,93,000 58,93,000 Additional Information to be considered: (i) Closing Stock on March 31st 2024 is 5,20,000. (ii) During the year, Plant and Machinery was purchased for ₹ 3,00,000 but it was debited to Purchase Account. (iii) 3 months factory rent is due but not paid ₹ 3,000. (iv) Provide depreciation at 5% per annum on furniture and 10% on plant and machinery and motor van. (v) Further bad debts 7,000. (vi) Provision for doubtful debts to be increased to ₹ 30,000 at year end. (vii) Provision for discount on Debtors to be made at 2%. [Sept. 2024, 10 Marks]

Income and Expenditure A/c

Receipt and Payment A/c

Entrance Fees

Membership fees

Donation

Scholarship granted to students out of funds provided by Government will be debited to Income & Expenditure Account.

Receipts and Payments Account is a summary of all capital receipts and payments.

If there appears a sports fund, the expenses incurred on sports activities will be taken to income and expenditure account.

Receipts and Payments Account highlights total income and expenditure.

Only revenue items are disclosed in Income and Expenditure account.

Fees received for Life Membership is a revenue receipt as it is of recurring nature. [Nov. 2018, 2 Marks]

Both revenue and capital nature transactions are recorded in the Receipts and Payments Account. [Dec. 2022, 2 Marks]; [MTP Jan. 2025]

The Receipts and payment account for a non-profit organization follows the accrual concept of accounting. [Sep. 2024, 2 Marks]

Where a Non-Profit organization is a separate trading activity, the profit/ loss from the trading account shall be transferred to Income Expenditure Account at the time of consolidation. [RTP Jan. 2025]

Smith Library Society showed the following position on 31st March, 2011 Balance Sheet as on 31st March, 2011 Liabilities Amount Assets Amount Capital Fund Expenses payable 7,93,000 7,000 Electrical Fittings Furniture Books Investment in securities Cash at bank Cash in hand 1,50,000 50,000 4,00,000 1,50,000 25,000 25,000 8,00,000 8,00,000 The Receipt and Payment Account for the year ended 31st March, 2011 is given below: Receipts Amount Payments Amount To Balance b/f Cash at bank 25,000 Cash in hand 25,000 To Entrance Fees To Membership Subscription To Sale proceeds of old papers To Hire of lecture hall To Interest on securities 50,000 30,000 2,00,000 1,500 20,000 8,000 By Electric charges By Postage and stationery By Telephone charges By Books Purchased By Outstanding Expenses paid By Rent By Investment in securities By Salaries By Bal. c/f. Cash at bank Cash in hand 7,200 5,000 5,000 60,000 7,000 88,000 40,000 66,000 20,000 11,300 3,09,500 3,09,500 You are required to prepare an Income and Expenditure Account for the year ended 31st March, 2011 and a Balance Sheet as at 31st March, 2011 after making the following adjustments: (a) Membership Subscription included 10,000 received in advance. (b) Provide for outstanding rent ₹ 4,000 and salaries ₹ 3,000. (c) Books to be depreciated @ 10% including additions. Electrical Fittings and Furniture's are also to be depreciated at the same rate. (d) 75% of Entrance Fees is to be capitalised. (e) Interest on Securities is to be calculated @ 5% p.a. including purchases made on 1.10.2010 for 40,000. [MTP Jan. 2025-Modified; Figures-2X]

The following is the Receipt and Payment A/c of Jyoti Charitable Hospital for the year ended 31st March, 2013: Receipts Amount Payments Amount To Balance B/d To subscriptions To Donations To Interest on Investment @ 7% per annum for the year To charity show collections 1,40,000 10,00,000 2,90,000 1,40,000 2,00,000 By Payment for medicines By Honorarium to doctor By Salaries By Sundry expenses By Equipment's purchased By Charity show Expenses By Balance c/d 6,00,000 2,00,000 5,50,000 10,000 3,00,000 20,000 90,000 17,70,000 17,70,000 Additional Information: On 01.04.2012 On 31.03.2013 Subscriptions Due 10,000 20,000 Subscriptions received in advance 20,000 10,000 Stock of Medicines 2,00,000 3,00,000 Creditors for Medicines 1,60,000 2,40,000 Equipment’s 4,20,000 6,00,000 Buildings 8,00,000 7,60,000 You are requested to prepare Income and Expenditure Account for the year ended 31st March, 2013 and Balance Sheet as at that date. [MTP Jan 2025, Modified]

Following is the Receipts and Payments account of Pune Medical Aid Society for the year ended 31-12-2022. Receipts and Payments Account for the year ended 31-12-2022 Receipts Amount Payments Amount To Opening Cash in Hand To Subscription 12,000 65,000 By Medicine Supply By Honorarium to Doctors 35,000 15,000 To Donations To Interest on Investment (10%) To Charity Show Collections 25,000 10,000 16,500 By Salaries By Sundry Expenses By Purchase of Medical Equipment By Charity Show Expenses By Closing Cash in Hand 36,000 950 25,000 2,750 13,800 1,28,500 1,28,500 The following is the additional information provided: On 01.01.2022 On 31.12.2022 Subscriptions Due 2,500 3,100 Subscriptions received in advance 1,800 1,400 Stock of Medicines 12,500 17,250 Amount due for Medicine Supply 12,000 16,500 Equipment’s 21,500 37,200 Buildings 65,000 61,750 You are required to prepare Income and Expenditure Account and Balance Sheet as on 31- 12-2022. [June 2023, 15 Marks]

ABC Sports Club had the following income and expenditure account for the year ended 31st Dec. 2022. Income and Expenditure Account for the year ended 31-12-2022 Amount Amount To Salaries To Stationery Expenses To Rent and Taxes To Insurance To Office Expenses To Depreciation Building Furniture Sports Equipment To Excess of Income over Expenditure 2,35,000 30,000 5,000 2,000 8,000 37,500 1,200 1,000 63,300 By Subscriptions By Interest By Donations By Miscellaneous Receipts 2,50,000 90,000 40,000 3,000 3,83,000 3,83,000 Additional information On 01.01.2021 On 31.12.2022 Govt. Securities 18,00,000 18,00,000 Subscription outstanding 70,000 1,00,000 Subscription received in advance 2,000 6,000 Salaries unpaid 10,000 15,000 Furniture 20,000 19,800 Land and building 20,00,000 19,62,500 Sports Equipment 35,000 39,000 Stock of Stationery 3,000 5,500 Cash in hand and Cash at bank as on 31-12-2021 is 1,08,000. You are required to prepare Receipts and Payments Account for the period ending 31-12- 2022 and Balance Sheet as on 31-12-2022. [Dec. 2023, 12 Marks]

The Receipts and Payments Account of Vandana Sports Club for the year ended 31st March, 2024 are as follows: Receipts Amount Payments Amount To Balance b/d Cash in Hand Cash at Bank To Subscriptions 5,200 35,500 2,95,000 By Salaries By Rent & Electricity By Library Books By newspapers & Magazines 1,55,000 69,750 10,500 16,600 To Entrance Fees To Miscellaneous Income To interest on investments 50,000 19,850 8,000 By Sports Equipment By Sundry Expenses By Balance c/d Cash in hand Cash at bank 28,500 71,050 8,750 53,400 4,13,550 4,13,550 Details of other assets & liabilities are furnished as follows: On 31.03.2023 On 31.03.2024 Salaries Outstanding 10,200 12,400 Outstanding Rent & Electricity 6,500 7,600 Investment (8% Govt Bonds) 1,00,000 1,00,000 Interest accrued on bonds 2,000 2,000 Subscription Receivable 18,700 20,600 Subscription received in advance 7,000 8,400 Furniture 65,500 Sports Equipment 41,500 Library Books 22,000 The closing values of furniture and sports equipment area to be determined after charging depreciation at 10% and 15% respectively inclusive of additions, if any during the year. The Club's library books are revalued at the end of every year and the value at the end of 31st March, 2024 was 30,000. 60% of the Entrance fee is to be capitalized. You are required to prepare: (i) Income and Expenditure Account for the year ended 31st March, 2024 (ii) Balance Sheet as on 31st March, 2024 [June 2024, 12 Marks]

From the following Receipts and Payments Account of Delhi Club, prepare Income & Expenditure Account for the year ended 31.12.2023 and Its Balance Sheet as on that date. Receipts Amount Payments Amount Cash in hand (Opening) Cash at Bank (Opening) Donations Subscriptions Entrance Fees Interest on Investments Interest received from Bank Sale of old newspaper Sale of Drama Tickets 8,100 15,000 7,000 10,000 1,500 100 400 250 1,250 Salary Repair expenses Purchase of furniture Miscellaneous expenses Purchase of investments Insurance premium Billiards Table Paper, Ink etc. Drama expenses Cash in hand (Closing) Cash at Bank (Closing) 3,000 500 7,000 500 6,000 300 10,000 250 500 4,500 11,050 43,600 43,600 Information: (1) Subscriptions in Arrear for 2023 1,200, subscription in advance for 2024550. (2) Insurance Premium outstanding ₹ 80, Miscellaneous Expenses prepaid 90. (3) 50% of Donation is to be Capitalized. (4) Entrance fee are to be treated as Revenue Income. (5) 8% Interest has accrued on Investments for 5 months. (6) Billiards Table costing ₹ 30,000 were purchased during the last year and 20,000 were paid for it. [Sept. 2024, 10 Marks]

The following is the Receipts and payments account of Masters Club for the year ended on 31st March, 2024. Receipts and payments A/c for the year ended on 31st March, 2024 Receipts Amount Payments Amount To Balance b/d To subscription To Sale of Refreshments 8,450 23,000 22,000 By Salaries and wages By Supply of refreshments By Sports Equipment 12,250 18,250 27,500 To Entrance Fees To interest on investments @ 7% 26,000 4,550 By Telephone Charges By Electricity charges By Honorarium charges By Balance c/d 2,800 15,600 6,500 1,100 84,000 84,000 Additional information: 1. Following are the assets and liabilities on 31st March, 2023: Assets- Sports equipment- 32,000; Subscription in arrears- ₹ 7,600; furniture-12,480 Liabilities- Outstanding Electricity charges- ₹ 5,400; Subscription in advance- 6,250 2. Following are the assets and liabilities on 31st March, 2024- Assets- Sports equipment- 50,500; Subscription in arrears- ₹ 5,200; furniture 11,180 Liabilities- Outstanding Electricity charges- ₹ 3,800; Subscription in advance- 4,850 3. 50% of the entrance fees to be capitalized. 4. Interest on the investments is being received in full, and the investments have been made on 1.4.2022 You are required to prepare Income and Expenditure account and the Closing balance sheet as of 31st March, 2024 in the books of Masters Club. [RTP Jan. 2025]

The following Trial Balance is the Trial Balance of a Proprietor as on March 31st 2024. Prepare Trading and Profit & Loss Account for the year ending March 31st 2024 and a Balance Sheet as at that date. Particulars Amount Particulars Amount Plant and Machinery 5,00,000 Capital 4,00,000 Office Furniture 26,000 Sundry Creditors 5,20,000 Opening stock 4,80,000 Sales 48,00,000 Motor van 1,20,000 Bills payables 56,000 Sundry debtors 4,57,000 Provision for doubtful doubts 25,000 Cash in hand 4,000 Return outwards 55,000 Cash at Bank 65,000 Discount received 37,000 Wages 15,00,000 Salaries 1,40,000 Purchases 21,35,000 Bills Receivable 72,000 Return inwards 93,000 Drawings 70,000 Advertisements 60,000 Factory Rent 8,000 Insurance 63,000 General Expenses 10,000 Bad debts 25,000 Discount allowed 65,000 58,93,000 58,93,000 Additional Information to be considered: (i) Closing Stock on March 31st 2024 is 5,20,000. (ii) During the year, Plant and Machinery was purchased for ₹ 3,00,000 but it was debited to Purchase Account. (iii) 3 months factory rent is due but not paid ₹ 3,000. (iv) Provide depreciation at 5% per annum on furniture and 10% on plant and machinery and motor van. (v) Further bad debts 7,000. (vi) Provision for doubtful debts to be increased to ₹ 30,000 at year end. (vii) Provision for discount on Debtors to be made at 2%. [Sept. 2024, 10 Marks]

Income and Expenditure A/c

Receipt and Payment A/c

Entrance Fees

Membership fees

Donation

Scholarship granted to students out of funds provided by Government will be debited to Income & Expenditure Account.

Receipts and Payments Account is a summary of all capital receipts and payments.

If there appears a sports fund, the expenses incurred on sports activities will be taken to income and expenditure account.

Receipts and Payments Account highlights total income and expenditure.

Only revenue items are disclosed in Income and Expenditure account.

Fees received for Life Membership is a revenue receipt as it is of recurring nature. [Nov. 2018, 2 Marks]

Both revenue and capital nature transactions are recorded in the Receipts and Payments Account. [Dec. 2022, 2 Marks]; [MTP Jan. 2025]

The Receipts and payment account for a non-profit organization follows the accrual concept of accounting. [Sep. 2024, 2 Marks]

Where a Non-Profit organization is a separate trading activity, the profit/ loss from the trading account shall be transferred to Income Expenditure Account at the time of consolidation. [RTP Jan. 2025]

Smith Library Society showed the following position on 31st March, 2011 Balance Sheet as on 31st March, 2011 Liabilities Amount Assets Amount Capital Fund Expenses payable 7,93,000 7,000 Electrical Fittings Furniture Books Investment in securities Cash at bank Cash in hand 1,50,000 50,000 4,00,000 1,50,000 25,000 25,000 8,00,000 8,00,000 The Receipt and Payment Account for the year ended 31st March, 2011 is given below: Receipts Amount Payments Amount To Balance b/f Cash at bank 25,000 Cash in hand 25,000 To Entrance Fees To Membership Subscription To Sale proceeds of old papers To Hire of lecture hall To Interest on securities 50,000 30,000 2,00,000 1,500 20,000 8,000 By Electric charges By Postage and stationery By Telephone charges By Books Purchased By Outstanding Expenses paid By Rent By Investment in securities By Salaries By Bal. c/f. Cash at bank Cash in hand 7,200 5,000 5,000 60,000 7,000 88,000 40,000 66,000 20,000 11,300 3,09,500 3,09,500 You are required to prepare an Income and Expenditure Account for the year ended 31st March, 2011 and a Balance Sheet as at 31st March, 2011 after making the following adjustments: (a) Membership Subscription included 10,000 received in advance. (b) Provide for outstanding rent ₹ 4,000 and salaries ₹ 3,000. (c) Books to be depreciated @ 10% including additions. Electrical Fittings and Furniture's are also to be depreciated at the same rate. (d) 75% of Entrance Fees is to be capitalised. (e) Interest on Securities is to be calculated @ 5% p.a. including purchases made on 1.10.2010 for 40,000. [MTP Jan. 2025-Modified; Figures-2X]

The following is the Receipt and Payment A/c of Jyoti Charitable Hospital for the year ended 31st March, 2013: Receipts Amount Payments Amount To Balance B/d To subscriptions To Donations To Interest on Investment @ 7% per annum for the year To charity show collections 1,40,000 10,00,000 2,90,000 1,40,000 2,00,000 By Payment for medicines By Honorarium to doctor By Salaries By Sundry expenses By Equipment's purchased By Charity show Expenses By Balance c/d 6,00,000 2,00,000 5,50,000 10,000 3,00,000 20,000 90,000 17,70,000 17,70,000 Additional Information: On 01.04.2012 On 31.03.2013 Subscriptions Due 10,000 20,000 Subscriptions received in advance 20,000 10,000 Stock of Medicines 2,00,000 3,00,000 Creditors for Medicines 1,60,000 2,40,000 Equipment’s 4,20,000 6,00,000 Buildings 8,00,000 7,60,000 You are requested to prepare Income and Expenditure Account for the year ended 31st March, 2013 and Balance Sheet as at that date. [MTP Jan 2025, Modified]

Following is the Receipts and Payments account of Pune Medical Aid Society for the year ended 31-12-2022. Receipts and Payments Account for the year ended 31-12-2022 Receipts Amount Payments Amount To Opening Cash in Hand To Subscription 12,000 65,000 By Medicine Supply By Honorarium to Doctors 35,000 15,000 To Donations To Interest on Investment (10%) To Charity Show Collections 25,000 10,000 16,500 By Salaries By Sundry Expenses By Purchase of Medical Equipment By Charity Show Expenses By Closing Cash in Hand 36,000 950 25,000 2,750 13,800 1,28,500 1,28,500 The following is the additional information provided: On 01.01.2022 On 31.12.2022 Subscriptions Due 2,500 3,100 Subscriptions received in advance 1,800 1,400 Stock of Medicines 12,500 17,250 Amount due for Medicine Supply 12,000 16,500 Equipment’s 21,500 37,200 Buildings 65,000 61,750 You are required to prepare Income and Expenditure Account and Balance Sheet as on 31- 12-2022. [June 2023, 15 Marks]

ABC Sports Club had the following income and expenditure account for the year ended 31st Dec. 2022. Income and Expenditure Account for the year ended 31-12-2022 Amount Amount To Salaries To Stationery Expenses To Rent and Taxes To Insurance To Office Expenses To Depreciation Building Furniture Sports Equipment To Excess of Income over Expenditure 2,35,000 30,000 5,000 2,000 8,000 37,500 1,200 1,000 63,300 By Subscriptions By Interest By Donations By Miscellaneous Receipts 2,50,000 90,000 40,000 3,000 3,83,000 3,83,000 Additional information On 01.01.2021 On 31.12.2022 Govt. Securities 18,00,000 18,00,000 Subscription outstanding 70,000 1,00,000 Subscription received in advance 2,000 6,000 Salaries unpaid 10,000 15,000 Furniture 20,000 19,800 Land and building 20,00,000 19,62,500 Sports Equipment 35,000 39,000 Stock of Stationery 3,000 5,500 Cash in hand and Cash at bank as on 31-12-2021 is 1,08,000. You are required to prepare Receipts and Payments Account for the period ending 31-12- 2022 and Balance Sheet as on 31-12-2022. [Dec. 2023, 12 Marks]

The Receipts and Payments Account of Vandana Sports Club for the year ended 31st March, 2024 are as follows: Receipts Amount Payments Amount To Balance b/d Cash in Hand Cash at Bank To Subscriptions 5,200 35,500 2,95,000 By Salaries By Rent & Electricity By Library Books By newspapers & Magazines 1,55,000 69,750 10,500 16,600 To Entrance Fees To Miscellaneous Income To interest on investments 50,000 19,850 8,000 By Sports Equipment By Sundry Expenses By Balance c/d Cash in hand Cash at bank 28,500 71,050 8,750 53,400 4,13,550 4,13,550 Details of other assets & liabilities are furnished as follows: On 31.03.2023 On 31.03.2024 Salaries Outstanding 10,200 12,400 Outstanding Rent & Electricity 6,500 7,600 Investment (8% Govt Bonds) 1,00,000 1,00,000 Interest accrued on bonds 2,000 2,000 Subscription Receivable 18,700 20,600 Subscription received in advance 7,000 8,400 Furniture 65,500 Sports Equipment 41,500 Library Books 22,000 The closing values of furniture and sports equipment area to be determined after charging depreciation at 10% and 15% respectively inclusive of additions, if any during the year. The Club's library books are revalued at the end of every year and the value at the end of 31st March, 2024 was 30,000. 60% of the Entrance fee is to be capitalized. You are required to prepare: (i) Income and Expenditure Account for the year ended 31st March, 2024 (ii) Balance Sheet as on 31st March, 2024 [June 2024, 12 Marks]

From the following Receipts and Payments Account of Delhi Club, prepare Income & Expenditure Account for the year ended 31.12.2023 and Its Balance Sheet as on that date. Receipts Amount Payments Amount Cash in hand (Opening) Cash at Bank (Opening) Donations Subscriptions Entrance Fees Interest on Investments Interest received from Bank Sale of old newspaper Sale of Drama Tickets 8,100 15,000 7,000 10,000 1,500 100 400 250 1,250 Salary Repair expenses Purchase of furniture Miscellaneous expenses Purchase of investments Insurance premium Billiards Table Paper, Ink etc. Drama expenses Cash in hand (Closing) Cash at Bank (Closing) 3,000 500 7,000 500 6,000 300 10,000 250 500 4,500 11,050 43,600 43,600 Information: (1) Subscriptions in Arrear for 2023 1,200, subscription in advance for 2024550. (2) Insurance Premium outstanding ₹ 80, Miscellaneous Expenses prepaid 90. (3) 50% of Donation is to be Capitalized. (4) Entrance fee are to be treated as Revenue Income. (5) 8% Interest has accrued on Investments for 5 months. (6) Billiards Table costing ₹ 30,000 were purchased during the last year and 20,000 were paid for it. [Sept. 2024, 10 Marks]

The following is the Receipts and payments account of Masters Club for the year ended on 31st March, 2024. Receipts and payments A/c for the year ended on 31st March, 2024 Receipts Amount Payments Amount To Balance b/d To subscription To Sale of Refreshments 8,450 23,000 22,000 By Salaries and wages By Supply of refreshments By Sports Equipment 12,250 18,250 27,500 To Entrance Fees To interest on investments @ 7% 26,000 4,550 By Telephone Charges By Electricity charges By Honorarium charges By Balance c/d 2,800 15,600 6,500 1,100 84,000 84,000 Additional information: 1. Following are the assets and liabilities on 31st March, 2023: Assets- Sports equipment- 32,000; Subscription in arrears- ₹ 7,600; furniture-12,480 Liabilities- Outstanding Electricity charges- ₹ 5,400; Subscription in advance- 6,250 2. Following are the assets and liabilities on 31st March, 2024- Assets- Sports equipment- 50,500; Subscription in arrears- ₹ 5,200; furniture 11,180 Liabilities- Outstanding Electricity charges- ₹ 3,800; Subscription in advance- 4,850 3. 50% of the entrance fees to be capitalized. 4. Interest on the investments is being received in full, and the investments have been made on 1.4.2022 You are required to prepare Income and Expenditure account and the Closing balance sheet as of 31st March, 2024 in the books of Masters Club. [RTP Jan. 2025]