Q.No.11 | Chapter 1 – Financial Statements of Not-for-Profit Organisations | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 11 Chapter 1 of +2-A

Entrance Fees

11. How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March 2019 in each of the following alternative cases?

Case I During the year ended 31st March 2019, Entrance Fees received was Rs 1,00,000.

Case II During the year ended 31st March 2019, Entrance Fees received was Rs 1,00,000. Out of this, Rs. 25,000 was received from individuals whose membership is not yet approved.

The solution of Question 11 Chapter 1 of +2-A: -

Case I

In the Books of __________________

Income and Expenditure Account
Expenditure		Amount	Income	Amount
			By Entrance Fees	1,00,000

Note: - In this case, Entrance fees will be credited to the Income and Expenditure Account because it is our revenue receipts.

Case II

In the Books of __________________

Income and Expenditure Account
Expenditure	Amount	Income	Amount
		By Entrance Fees	75,000

 

In the Books of __________________

Balance Sheet
Liabilities	Amount	Assets	Amount
Entrance Fees	25,000

 

Note: - In this case, Entrance fees will be credited to the Income and Expenditure Account to the extent which is received from members and Balance will be created as a liability because they are not our members till day so they can ask for a refund of that amount.

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication