Q.No.46 | Chapter 1 – Financial Statements of Not-for-Profit Organisations | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 46 Chapter 1 of +2-A

46. From the following Receipts and Payments Account and additional information relating to the star Cricket Club, prepare Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019

Receipts		Rs.	Payments		Rs.
To Balance B/d			By Upkeep of Fields		20,000
Cash in Hand 1st April 2018`	10,000		By Tournament Expenses		7,000
Cash at Bank as per pass Book	20,000	30,000	By Rates and Insurance		2,000
To Members’ Subscriptions		50,000	By Telephone		500
To Admission Fee		3,000	By Stationery		1,000
To Sale of Old Bats, etc.		500	By General Charges		500
To Hire of Ground		3,000	By Secretary’s Honorarium		2,000
To Subscriptions for Tournament		10,000	By Bats, Balls, Etc.		7,000
To Donations		75,000	By Balance C/d
To Legacy Donations		25,000	Cash in Hand 31st March 2019	1,00,000
			Cash at Bank as per Pass Book	56,500	1,56,500
		1,96,500			1,96,500

Assets on 1st April 2018:

The stock of Bats and Balls	15,000
Stationery	2,000
Subscriptions Due	5,000

Subscription due on 31st March 2019 amounted to Rs 7,500. Write off 50% of Bats, Balls(not considering sale) and 25% of stationery.

The solution of Question 46 Chapter 1 of +2-A: -

Income and Expenditure Account (for the year ended 31st March 2019)

Expenditure		Amount	Income			Amount
To Upkeep of Fields		20,000	By Members' Subscriptions *1		50,000
To Rates and Insurance		2,000	Add: Outstanding for 2018-19		7,500
To Telephone		500	Less: Outstanding for 2017-18		5,000	52,500
To General Charges		500	By Admission Fee			3,000
To Secretary's Honorarium		2,000	By Sale of Old Bats, etc.			500
To Depreciation on Bats, Balls, etc. *2		11,000	By Hire of Ground			3,000
To Stationery Consumed *3		750	By Donations			1,00,000
To Surplus(Balancing Figure)		1,22,250
		1,59,000				1,59,000

* Means: - see the working note for calculation

Balance Sheet (for the year ended 31st March 2018)

Liabilities	Amount	Assets		Amount
		The stock of Bats and Balls		15,000
		Printing and Stationery		2,000
		Subscriptions Outstanding		5,000
		Cash at Bank		30,000
Capital Fund (Balancing Figure)	52,000
	52,000			52,000

 

Balance Sheet (for the year ended 31st March 2018)

Liabilities		Amount	Assets			Amount
Capital Fund	52,000		Subscriptions			7,500
Add: - Surplus	1,22,250	1,74,250	Outstanding Bats and Balls		15,000
Subscription for Tournament	10,000		Add: Purchases		7,000
Less: Tournament Expenses	(7,000)	3,000			22,000
			Less: 50% Written-off		11,000	11,000
			Printing and Stationery		2,000
			Add: Purchase		1,000
					3,000
			Less: 25% Written-off		750
			Printing and Stationery			1,56,500
		1,77,250				52,000

Working Note: -
*1: - Calculation of Amount of Subscriptions

Subscription received During the year	50,000
Add: - Subscription outstanding at the end of the year	7,500
Subscription received in advance at the beginning of the year	-
	57,500
Less: - Subscription outstanding at the beginning of the year	5,000
Subscription received in advance at the end of the year	-
The amount for subscription credited to the Income and Expenditure A/c	52,500

*2:- Calculate Depreciation on Bats and Balls
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 15,000 + 7 000
Rate of Depreciation = 50%
Period = from 01/04/18 to 31/03/19 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 22,000 X 50/100 X 12/12
Depreciation = 11,000/-

*3:- Calculation of the amount of consumption of Stationery Items
Opening Balance of Stationery Items	2,000
Add: - Purchase of Stationery Items during the year	1,000
	3,000

Consumption of Stationery Items @ 25%
Consumption = Value of Stationery Items X Rate of Write off
= 3000 X 25%
= 750

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

T.S. G

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 Statemet

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