Question 36 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 36 Chapter 1 of +2-A

Question 36 Chapter 1 of +2-A

36. Prepare Income and Expenditure Account from the following Receipts and Payments Account of Delhi Nursing Society for the year ended 31st March 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts  Rs. Payments Rs. 
To Balance b/d (Cash at Bank) 2,01,000 By Salaries of Nurses 65,600
To Subscriptions  1,11,500 By Board, Laundry and Domestic help 38,000
To Fees from Non-member  27,000 By Rent, Rates and Taxes 20,000
To Government Grant 1,00,000 By Cost of Car 2,00,000
To Donations For building Fund 1,56,000 By Expenses of Car 84,000
To Interest  3,800 By Drugs and Incidental Expenses 67,000
    By Balance c/d (Cash at Bank) 1,24,700
  5,99,300   5,99,300

The solution of Question 36 Chapter 1 of +2-A

: –

Income and Expenditure Account ( for the year ended 31st March 2019)
Expenditure
Amount Income
Amount
To Salaries of Nurses   65,600 By Subscriptions 1,11,500 9,00,000
To Board, Laundry and Domestic help   38,000 Less: – Donation for Building 10,000 10,000
To Rent, Rates and Taxes   20,000 By Fees from Non-member   27,000
To Expenses of Car   84,000 By Government Grant   1,00,000
To Drugs and Incidental Expenses 67,000   By Interest   3,800
Add: – O/S Amount 12,800 79,800      
      By Deficit (Balancing Figure)   55, 100
    2,87,400     2,87,400

Note:

  • Opening and Closing balance of Cash Account are assets so it will be transferred to Balance sheets.
  • If Donation is got for specific Assets then it will be treated in the Balance sheet. In this question, the donation is received for the Building Fund.
  • Cost of Car is also an asset So, it will be treated in 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)

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)

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2 Book 1 min - Question 36 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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