Question 10 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 10 Chapter 1 of +2-A

Question 10 Chapter 1 of +2-A

10. Show how are the following items dealt with while preparing the final accounts for the year
ended 31st March 2019 of a Not-for-Profit Organisation:

The case I: Expenditure on the construction of Pavilion is Rs 6,00,000. The construction work is in progress and has not yet completed. Capital Fund as at 31st March 2018 is Rs 20,00,000.

Case II Expenditure on the construction of Pavilion is Rs 6,00,000. The construction work is in progress and has not yet completed. Pavilion Fund as at 31st March 2018 is Rs 10,00,000  and Capital Fund as at 31st March 2018 is Rs 20,00,000.

The case III: Expenditure on the construction of Pavilion is Rs 6,00,000. The construction work is in progress and has not yet completed. Pavilion Fund as at 31st March 2018 is Rs 10,00,000  and Capital Fund as at 31st March 2018 is Rs 20,00,000. Donation Received for Pavilion on 1st January 2019 is Rs 5,00,000.

The solution of Question 10 Chapter 1 of +2-A

: –

In the Books of __________________
Balance Sheet
Liabilities
  Amount Assets
Amount
Capital Fund 24,000 20,00,000 Pavilion work in progress 6,00,000

Note: – In this case, there has not any specific fund maintained to meet the expenditure related to the
construction of Pavilion, So that’s why we have to show the full amount of Capital Fund in the
the balance sheet on the liabilities side and the total amount spent on the construction of the
the pavilion will be shown on the assets side of the balance sheet.

 

In the Books of __________________
Balance Sheet
Liabilities
  Amount Assets
Amount
Pavilion Fund 10,00,000   Pavilion work in progress 6,00,000
Less: – Expenditure on the construction of Pavilion 6,00,000 4,00,000    
Capital Fund 20,00,000      
Add: – Pavilion work in progress 6,00,000 26,00,000    

Note: – In this case, they have maintained a specific fund (Pavilion Fund) to meet the expenditure related to the construction of Pavilion, So that’s why,
– we have to subtract the amount of expenditure on the construction of Pavilion from the amount of Pavilion Fund.
– we have to add the amount of Pavilion work in progress in the amount of Capital Fund in the balance sheet and
– the total amount spent on the construction of the pavilion will be shown on the assets side of the balance sheet.

 

In the Books of __________________
Balance Sheet
Liabilities
  Amount Assets
Amount
Pavilion Fund 10,00,000   Pavilion work in progress 6,00,000
Add: – Donation received 5,00,000      
Less: – Expenditure on the construction of Pavilion 6,00,000 9,00,000    
Capital Fund 20,00,000      
Add: – Pavilion work in progress 6,00,000 26,00,000    

 

Note: – In this case, they have maintained a specific fund (Pavilion Fund) to meet the expenditure related to the construction of Pavilion, So that’s why,
– we have to subtract the expenditure on the construction of Pavilion from the Pavilion Fund and have to add the amount of donation received in the Pavilion Fund.
– we have to add the amount of Pavilion work in progress in the amount of Capital Fund in the balance sheet and
– the total amount spent on the construction of the pavilion will be shown on the assets side of the balance sheet.

Not-for-Profit Organisations – Meaning and Overview

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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)

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

2 Book 1 min - Question 10 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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