Question 7 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 7 Chapter 1 of +2-A

Question 7 Chapter 1 of +2-A

7. How are the following dealt with in the accounts of a Not-Profit Organisation?

CaseI Debit Credit CaseII Debit Credit
    50,000 Match Fund   50,000
Prize Fund     Match Expenses 35,000  
Prizes Awarded 12,000   Investments of Match Funds 60,000  
Match Expenses 15,000   Interest on Match Fund Investment   3,000
      Prizes Awarded 19,000  

The solution of Question 7 Chapter 1 of +2-A

: – 

In the Books of __________________
Receipts and Payment A/c
Expenditure 
  Amount Income
Amount
To Match Expenses A/c 50,000      

Note: – In this case, there is no specific fund maintained to meet the expenditure related to the Matches, So that’s why it will be debited to the income and expenditure a/c

 
Balance Sheet
Liabilities
  Amount Assets
Amount
Prize Fund 50,000      
Less: – Prizes awarded 12,000 38,000    

Note: – In this case, there is a specific fund maintained to meet the expenditure related to the Prize,
So that’s why it will be directly posted in the balance sheet by deducting the amount of
expenditure from the total amount of funds.

In the Books of __________________
Receipts and Payment A/c
Expenditure 
  Amount Income
Amount
To Prize Awarded A/c 19,000      

Note: – In this case, there is no specific fund maintained to meet the expenditure related to the Prize,
So that’s why it will be debited to the income and expenditure a/c

Balance Sheet
Liabilities
  Amount Assets
Amount
Match Fund 1,00,000      
Add: – Interest on Match Fund Investment 3,000      
Less: – Match Expenses 35,000 68,000    

Note: – In this case, there is a specific fund maintained to meet the expenditure related to the Match,
So that’s why it will be directly posted in the balance sheet by deducting the amount of
expenditure from the total amount of funds.

 

 

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 7 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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