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

Question 10 Chapter 1 of +2-A
Question No.10 - Chapter No.1 - T.S. Grewal +2 Book Part-A 2019-Solution-min-min

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Question 10 Chapter 1 of +2-A

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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.

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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
LiabilitiesAmountAssets
Amount
Capital Fund24,00020,00,000Pavilion work in progress6,00,000

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
LiabilitiesAmountAssets
Amount
Pavilion Fund10,00,000 Pavilion work in progress6,00,000
Less: – Expenditure on the construction of Pavilion6,00,0004,00,000  
Capital Fund20,00,000   
Add: – Pavilion work in progress6,00,00026,00,000  

Note: – In this case, they have maintained a specific fund (Pavilion Fund) to meet the expenditure related to the construction of the Pavilion, So that’s why
– we have to subtract the amount of expenditure on the construction of the Pavilion from the amount of 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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Comment if you have any questions.

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)

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)

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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