Not For Profit Organisation Class 12th Notes

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CHAPTER – 1
ACCOUNTING FOR NOT-FOR-PROFIT ORGANIZATIONS
Define NPO NPO's are voluntary organisations founded with objective

of promoting art, culture, education and other social and
charitable purpose without any intention of earning profit.
For examples
hospitals,colleges,schools,universities,religious organisa-
tions, culture institutions, professional accounting bodies
i.e. ICAIICSI etc.
NPO's Profit making entities
Difference 1. The ultimate goal is to 1. The ultimate goal is the
between NPO's serve the community in- earn profit.
and Profit making terest
organisation 2.it receives its fund in It receives its fund from its
the form of donations, owners or partners, known as
subscriptions, etc. known capital
as capital fund.
3. Their final accounts Their final accounts includes
includes receipt and Trading a/c, Profit & Loss a/c
payment a/c, income and balance sheet
and expenditure a/c and
balance sheet
4. The net result of the The net result of the activities
activities of such entities of such entities is known as
is known as the surplus/ the profit/loss.
deficit
Difference between Receipts and payment Income and expenditure
receipts and account account
payment account • It is prepared on the • It is like p & l a/c i.e. It is a
and income and basis of cash book Nominal A/c
expenditure a/c or • It is real account • It records only revenue
features of receipts • It records all types of transactions related to
and payment transactions whether current year only i.e. after
account and income revenue or capital nature adjustments
and expenditure and relates to any year • If follows accrual basis of
account accounting
1 [Class XII : Accountancy]

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• It follows cash basis of • It does not have an opening

accounting. balance. At the end it shows
• It starts with the opening the surplus i.e. excess of inco
balance of cash and bank me over expenses or deficit
and ends with closing i.e. excess of expenses over
balance of cash and bank income
Difference between Receipt and payment Cash book

receipt and payment account
a/c and cash book • It is prepared by not for • It is prepared by all the or-
profit organisation. ganisations.
• It is prepared on the ba- • It is prepared on the basis of
sis of cash book. source documents/vouchers.
• It is prepared at the end • It is recorded on daily basis.
of accounting year.
Difference between Income and expenditure Profit and loss a/c

income and expen- a/c
diture a/c and profit • It is prepared by not for It is prepared by profit making
and loss a/c profit organisation organisations
• It is prepared on the It is prepared on the basis of
basis of receipt and trial balance and other infor-
payment a/c and other mation. The main objective is
information to find net profit or loss.
• The main objective is to
find out surplus or deficit
Fund based It refers to the accounting whereby receipts and incomes

accounting related to a particular fund like building fund sports fund,
prize fund etc. Credited to that particular fund and pay-
ments like construction of building expenses on sports,
prizes distributed etc. Debited to it. Therefore receipts and
payments on account of such funds are not recorded in
the income and expenditure account

[Class XII : Accountancy] 2

Treatment of items definition Treatment Treatment in

specific in income balance sheet
items and expen-
diture ac-
count
Subscripton It is the preiodical As an Outstanding
amount paid/ contrib- income as an asset
uted by the members and advance
at regular interval. It received as a
will be treated as rev- liabilities
enue receipt.
Consumable Consumable amount as an Stock of

expenditure
items like sta- will be treated as consumable
tionery, medi- revenue expenditure item as an
cines, books, Asset, prepa
sports mate- id expenses
rial etc. related to it
as an asset
and
outstanding
expenses
related to it
as a
liabilities
Donation It is the amount do- General Specific
nated by any person, donation donation as
it may be of two types will be a liabilities
1. general donation-it shown as
can be used for any an income
purpose, it will be
treated as revenue
receipts

2. Specific donation like

donation for library-it
can be used only for
specific purpose, it will be
treated as capital receipts.
Any expenses related to it
will be deducted from
it in balance sheet

■ Entrance/ It is received the As an
from
■ admis- new members at the time income
sion fees of admission/entrance in
the organisation. It will be
treated as revenue receipt.
■ Sale of old lt will be treated as revenue As an
sports receipts income
materiaL
sale of old
newspapers
/periodicals,
general
government
grant-interest
received
on fixed
deposit/inv
estment, pr
oceeds from
show, locker
rent
■ Life Some club and societies As a
membership members can make a Liabilities
Fees payment for life memb-
ership i.e. they can enjoy
the facilities of the club/
societies for the rest of the
life. It will be treated as
capital receipts

■ legacy It is in nature of gift As a

in cash or property liabilities
as per the will.it will
be treated as capital
receipts
endowment It is a fund arising As a
fund from bequest or gift, liabilities
the income of which is
devoted to a specific
purpose as specify
by the donor. It will
receipt
honorarium It is the amount paid to As an
the person(outsider) expenses
to reimburse the actu-
al expenses incurred
for delivering a lec-
ture or giving his per-
formance as an artist.
It will be treated as
revenue expenditure
upkeep of Treated as revenue As expenses
lawn, maint expenses.
enance of
ground, nor
mal repair
charges,
municipal
taxes,
expenses
on show,
news
paper,
magazines,
rent,
insurance

sale/ It will not be shown in Profit on sale Purchase in

purchase the income and expen- as an income asset added
of fixed diture account, howev- and loss/ and book value
assets like er profit or loss on sale depreciation of asset sold
furniture, of fixed asset and de- as an deducted from
building, preciation will be treated expenditure relevant asset
sports as revenue item.
equipment,
books,
investment,
treatment It will be treated as If fund is As an liabilities
of specific capital receipts, any less than the
funds like expenses related to expenditure
sports it will not be shown in related to it
fund,prize income and expenditure than
fund,tourna account i.e. deducted difference
ment fund from relevant fund in will be as an
the balance sheet. expenses
etc.
Specific Sometimes As an asset
fund organisation invested
investment the specific fund into
like sports outside in specified
fund securities,called specific
investment, fund investment..it will
prize fund be treated as capital
investment, expenditure.
tournament
fund
investment
Interest Interest received will Added in
on specific be treated as capital relevant fund
fund receipt and added in
investment the relevant fund in the
balance sheet

Outstanding It will be treated as Added in

interest on capital item relevant fund
specific fund and also as an
investment asset
General General fund will be Interest as General

fund, treated as capital an income fund as a
general receipt, general fund liability and
fund investment as capital general fund
investment, expenditure and interest investment as
interest on as a revenue receipt. an asset
general fund
investment
Grant It is an amount of money General Special grant
given specially by the grant as an as a liabilities
government. It may be income
of two types.
1. General grant it
can be used for any
purpose. it will be
treated as revenue
receipts
2. Special grant-it
can be used only for
specific purpose. it will
receipts. Any expenses
related to it will be
deducted from it in
balance sheet

Important formats
Total Subscription/Income/Expense for CY
1st January20..... 31st

(opening) December 20.... (closing)
← Outstanding(-) xxxxx ← Outstanding (+) xxxxx
(+) Advance/Prepaid→ xxxxx (-)Advance/Prepaid→ xxxxx
Subscription Account
Particulars Amounts Particulars Amounts

To Balance b/d(Out. at the xxxxx By Balance b/d(Adv. xxxxx
beg) at the beg)
To Income & Expenditure xxxxx By Cash A/c(Sub. xxxxx
A/c(bal. fig.) received during the
To Balance c/d (Adv. at the xxxxx year)
end) By Bad debts(if any) xxxxx
By Balance c/d(Out.
At the end end)
xxxxx xxxxx
Statement showing calculation of subscription
Total Subscription received during the year(whether relates xxxxx

to any year)
Less: Subscription o/s at the beg. Of current year xxxxx
Less: Advance Subscription received during the current xxxxx

year(relates to any future period)
Add: O/s Subscription at the end of current year(including xxxxx
sub. o/s for p/y year till the end of current year)
Add: O/s Subscription received in advance at the end of xxxxx
current year
Subscription to be shown in income and expenditure a/c xxxxx

Note- subscriptions o/s as on means total o/s subscription on a particular

date(including previous year o/s if any till date) and subscription o/s for the
year means only relates to current year, for at the end we have to add o/s for
p/y till date in this.
Treatment Of Consumable Items
Illustration:
From the following information, calculate the amount of stationery to be debited

to the income and expenditure account of a charitable trust
RECEIPTS AND PAYMENT ACCOUNT(AN EXTRACT).
For the year ended 31st march 2018
Receipts amount Payments amount

To sale of 120000 By creditors for 300000
stationery (book stationery
value Rs. 90000)
By cash purchases 100000
of stationery
ADDITIONAL INFORMATION:
Particulars AS at 1st April ,2017 As at 31st March,2018

Stock of stationery , 75000 100000
Creditors of stationery 30000 70000
Advance paid for 10000 15000
stationery
Answer:
Payments made during the year as per 300000 Treatment of items
receipts and payment account
Add: advance payments for stationery at the 10000 Asset on 31/3/17

end of PY or in the beginning of current year

Less: Creditors for stationery at 30000 Liabilities on 31/3/17

the end of PY or in the beginning
of current year
Less: advance payments for 15000 Asset on 31/3/18
stationery at the end of current
year
Credit purchase during the year 335000
Add: cash purchases (if any) 100000
Total purchase during the year 435000
Add: opening stock of stationery 75000 Asset on 31/3/17
Less: closing stock of stationery 100000 Asset on 31/3/18
90000
Less: sale of stationery ( cost
price) if any
Amount of stationery consumed 320000 Expenses in income and
expenditure account
NOTE: if purchase of consumable item is given instead of payment than o/s

creditors and advance paid to creditors will not be adjusted (add or less) in the
above format. In this case consumed amount will be= op. Stock+purchases-
closing stock- sale of consumable item (if any)
Credit Purchase
Payment made to creditors xxxxx

Add: Closing balance of Creditors xxxxx
Less: Opening balance of Creditors xxxxx
Credit purchase of consumable items xxxxx
Receipt and Payment Account
Receipts Amount Payments Amount

Balance b/d
Balance b/d Cash at Bank(overdraft) xxxxx
Cash in hand xxxxx Capital payments:
Cash at bank xxxxx Building construction

Capital Receipts: Sports equipments or xxxxx

materials
Legacies xxxx Cost of leasehold land xxxxx
Sale of office furniture xxxxx Investments xxxxx

Sale of sports equipments xxxxx Advance for purchase of xxxxx
buildings
Donations for special Government's loan xxxxx
purposes
e.g., building, prizes etc. Furniture xxxxx
Life membership fees xxxxx Revenue payments: xxxxx
Sale of investments xxxxx Prizes paid xxxxx
Endowment fund receipts xxxxx Entertainment expenses xxxxx
Printing and stationery xxxxx
Receipt on account of xxxxx Newspapers and xxxxx
special funds e.g., Prize periodicals
fund, tournament fund
etc.
Interest on specific fund Repairs xxxxx
Investments xxxxx Postages xxxxx
Entrance fees xxxxx honorarium xxxxx
Revenue Receipts: xxxxx Expenses on special food xxxxx
to patients
Subscriptions xxxxx Insurance, rent, salaries xxxxx
General donations xxxxx Advertisement xxxxx
Proceeds from xxxxx Audit fee xxxxx
entertainments
Interest or dividends xxxxx
sale of old newspapers, xxxxx Telephone, electric charge xxxxx
waste papers etc.
Miscellaneous receipts xxxxx Gardening xxxxx
Balance c/d xxxxx

Cash at bank (Bank xxxxx Bar expenses xxxxx

overdraft) Up-keep of lawns xxxxx
Municipal taxes xxxxx
Charity xxxxx
Printing of year book xxxxx
Drawings xxxxx
Balance c/d (closing xxxxx
balance)
Cash in hand xxxxx
Cash at bank xxxxx
xxxxx xxxxx
Note: There will be either or the two amounts i.e., bank overdraft or
cash at bank and not both.
Income and Expenditure Account
Expenditure Amount Income Amount

Expenses account(e, g, salary): Income Account: (e.g.,
Total salaries paid during the subscriptions)
year xxxxx Total amount of
subscriptions received
Add: Outstanding at the end
during the year xxxxx
xxxxx
Add: Outstanding at the end
Less: outstanding in the
Less: outstanding in the
beginning xxxxx
beginning xxxxx
(or accrual amount paid for last
(or actual amount of last
year) year received
Add: Advance paid in the this year)
previous year xxxxx Add: Advance received last
Less: Advance paid for the year xxxxx
salaries in the current year Less: Advance received this xxxxx
xxxxx year xxxxx
Salary of the year xxxxx
Expenses on consumable xxxxx Current Income: xxxxx
materials: (e.g., stationery) Profit on sale of asset :
Sale price of the asset xxxxx

Opening stock of Less: Book value of the asset

stationary xxxx sold xxxxx _______
Add: Purchases during
the year xxxx Net profit on sale xxxxx
Less: Creditors for
stationery in the Receipts for specific items
beginning xxxx xxxx
Add: Creditors for (Cinema shows)
stationery at the end xxxx
Add: Advance payments Less: Amount spent xxxx
for stationery last year xx
Less: Advance payments Net Income on specific item: xxxxx
for stationery in the
current year xxxxx Other income and gains with xxxxx
Less: Stock of stationery adjustments
at the end xxxxx
Stationery actually xxxxx Excess of Expenditure over xxxxx
consumed Income to be deducted from
Loss on the sale of an the Capital Fund in the Balance
asset: Sheet (Balancing Figure)
Book value of the asset
Less: Sale price
Net loss on sale xxxxx
Other expenses and
losses after necessary xxxxx
adjustments
Expenses for specific
purpose
(e.g., cinema shows)
Expenses paid xxxxx
Less: Collection xxxxx
Net expenses of specific xxxxx
item
Depreciation xxxxx
Excess of Income over
Expenditure to be added xxxxx
to Capital Fund in the
Balance Sheet
(Balancing Figure)
xxxxx xxxxx
Note: Either of the two balancing figue at the end.

Balance Sheet
As on ...........
Liabilities Amounts Assets Amounts

Capital Fund: Assets:
Opening Balance xxxx Last Balance xxxx
Add: Excess of Income over Add: Purchase in the
Expenditure xxxx current year xxxx
Closing Balance xxxxx
Or Stock of xxxxx
Consumable
Less: Excess of xxxxx Materials
Expenditure over xxxx Balance as given in the
Income question
Capitalised Income of xxxxx Or
the Current year Last Balance xxxx
on account of: Add: Purchase
Legacies xxxxx during the year xxxx
Life Membership Fees Less: Value
(These may be added to xxxxx consumed during
Capital Fund too) the year xxxx
Special Fund/Donations Closing Balances: xxxxx
Last Balance (if any) xxxx Cash in hand xxxxx
Add: Receipts for the item Cash at bank in
during the year xxxx Current Account, xxxxx
Add: Income earned on Fixed
Fund Investment xxxx Deposit Account xxxxx
Less: Expenses paid out of etc.
Fund/Donations xxxx Outstanding Income
Creditors for Purchases of Last Balance xxxx
Supplies xxxxx Less: Received in the
Bank Overdraft (at the end) xxxxx Current year xxxx xxxxx
Outstanding Expenses Net Balance xxxxx
Last Balance b/d xxxxx Pre-paid Expenses at xxxxx
Less: Paid during the year the end
Add: Outstanding at the end xxxxx
Income Received in xxxxx
Advance at end
xxxxx xxxxx


For the Year Ended 31.12.2017
Its left hand side is called "Receipts" and right hand side "payments". On the
left hand side all cash receipts are recorded, while on the right hand side all
cash payments are recorded arranged in a classified form. It starts with last
year's closing cash in hand and cash at bank and closes with current year's
closing cash in hand and cash at bank. In other words, its opening balance
indicates last year's closing cash in hand and cash at bank, while its closing
balance means current year's closing cash in hand and cash at bank.
Example:
From the following cash book prepare receipts and payments account for the
year ended 31 December 2017.
Cash Book
Dr. Cr.
Date Particular L/R Amount Date Particular L/R Amount
2017 2017
Jan. 1 Balance b/d 250 Jan. 5 Rent 200
Feb. 2 Subscription 600 Jan.16 Traeveling
expenses 15
Mar. Admission 25 Fed. Salaries 250
10 fee 12
Apr.5 Subscription 950 Mar. 17 Entertainment 50
expenses
May. Sale of old 10 Apr. 20 Electric 20
20 newspapers charges
June Subscription 880 May Furniture 300
3 5
July Adimission 30 May Postage 18
15 fee 10
Aug. Sale of old 15 June Sattionary 120

20 newspaper 3

Sep. Donation 100 July Electric 30

5 12 charges
Oct. 1 Sale of old 150 Aug. 3 Newspaper 25
furniture
Nov. Donation 50 Sep. Salaries 320
15 15
Dec. Subscription 250 Sep. Newspaper 65
28 20
Oct. 3 Traveling 25
expenses
Oct. 12 Postage 12
Nov. 5 Rent 300
Now. Entertainment 80
16 expenses
Dec. 5 Books 450
Dec. Salaries 350
12
Dec. Rent 130
25
Dec. Blance c/d 550
31
----------- -----------
3,310 3,310
2018 ----------- ------------
Jan. 1 550


Solution:
ABC Club
For the year ended 31st December, 2017
Receipts AMOUNT Payments AMOUNT
Balance b/d 250 Rent [200+300+130] 630
Subscription 2,680 Traveling expenses 40

[600+950+880+250] [15+25]
Admission fee [25+30] 55 Salaries [250+320 + 350] 920
Sale of old newspaper 25 Entertainment expenses 130

[10+15] [50+80]
Donation [100 + 50] 150 Electric charges [20+30] 50
Sale of old furniture 150 Furniture 300
Postage 30
[18+12]
Stationary 120
Newspaper [25+65] 90
Books 450
Balance c/d 550
-------------- -------------
3,310 3,310
-------------- -------------
Balance b/d 550


Illustration : - 1 Rs.
Subscription received during 2017-18 50,000

Subscription outstanding on 31-3-18 8,000
Subscription outstanding on 1-04-17 6,000
Subscription received in advance on 31-3-18 3000
Subscription received in advance on 31 -3-17 5000
calculate the amount of subscription to be credited to Income & Expenditure

a/c for the yr. 2017-18.
Ans.l Rs.
Subscription received during the yr. 50,000

Add: Subscription outstanding on 31-3-18 8000
Add: subscription received in advance on 31 -3-17 5000
---------------
63,000
Less: Subscription outstanding on 1-04-17 6,000
Less: Subscription received in advance on 31-3-18 3000
Amount to be credited to Income & Expenditure A/c ==== → 54,000
Illustration : - 2 Rs.
DELHI Club received subscription during the yr. 2015-16 1,50.000

Subscription received in advance on 31 -3-15 4,500
Subscription received in advance on 31 -3-16 5,100
Subscription outstanding on 31-3-16 for 2015-16 3,800
Subscription outstanding 2014-15 (of which Rs.4,000 received
in 2015-16) 6,000
Calculate the subscription to be taken to Income & Exp. a/c for 2015-16.
Ans. 2 Rs.
Total Subscription Received during the yr. 2015-16 1,50,000

Add: Sub. Outstanding for 2015-16 5,800

Sub. Received in advance on 31-3-15 4.500

---------------
1,60,300
Less: Sub received in advance on 31-3-16 5,100
Sub. Outstanding on 31-3-15 6000 11,100
Sub for 2015-16 to be taken to Income & Exp. a/c. ====→ Rs. 1,49,200
--------------
Illustration :- 3
Ascertain the amount of salary chargeable to Income & Expenditure A/c for 2016-17
Rs.
Total salaries paid in 2016-17 10,200
Prepaid salaries on 31 -3-2016 1,200
Prepaid salaries on 31-3-2017 600
Outstanding salaries on 31-3-2016 900
Outstanding salaries on 31-3-2017 750
Ans. 3 Rs.
Total Salaries paid in 2016-17 10,200

Add: - Outstanding salaries on 31 -3-17 750
Prepaid salary on 31-3-16 1,200
-------------
12,150
Less:-Outstanding on 31-3-16 - 900
Prepaid on 31-3-17 - 600 1,500
---------- ------------
Salaries dr. to Income & Exp. A/c for 2016-17 10,650
Illustration: - 4
How would you deal with the following items in the Balance sheet of a NPO?
Rs.
1. Donations received for Auditorium construction
(Expected total cost of the auditorium Rs.40,00,000) 25,00,000
2. Expenditure on construction of Auditorium 21,00,000
3. opening balance of Auditorium fund 1,00000
4. 10% Auditorium fund INVESTMENT 2000000
5. INTEREST ON Auditorium fund INVESTMENT 150000

Ans. 4
Balance Sheetf (As at=====)
Liabilities Amount Assets Amount

Capital Fund xxx Auditorium in 21,00,000
Progress
Add: Transfer From Auditorium 21,00.000
fund
10% Auditorium 2000000
Auditorium Fund 100000 fund
INVESTMENT
Add: Donation 25,00,000 Accrued Interest
Less: Transferred to o n A u d i t o r i u m 50000

fund
Capital fund 21.00.000 investment
5,00,000
Add: INTEREST ON
Auditorium fund
INVESTMENT 200000
(150000+50000) .............. 700000
Illustration 5
Prize fund (1-4-16) 10000

Donation for prize fund 20000
5% prize fund investment 10000
Expenditure on prize distribution 50000
Interest on 5% prize fund investment 500

Ans.5.
Income & Expenditure A/c
(Year ended on 31s' March 2017)
Expenditure Rs. Income Rs.
Distribution of prize 19500
Balance Sheet as at 31.3.2017
Liabilities Rs. Assets Rs.
Prize fund 10000
Add: Donation for
prize fund 20000

Add: Interest on 5% prize Fund
investment 500
-----------
30500
Less: Distribution of Prize *********

30500
Illustration 6 :-
From the following particulars of DELHI Charity Hospital, perpare Income &
Expenditure a/c & the balance sheet as on 31st March 2017.
Receipts Rs. Payments Rs.
To Cash in hand 1/4/16 7,130 By Medicines 30,590
To Subscriptions 47,996 By Doctor" s Honorarium 9,000
To Donations 14,500 By salaries 27,500
To Interest® 7% on
Bank
Fixed Deposit For full yr. 7,000 Petty expenses 461
By Equipments 15,000

To charity show 10,450 By charity show expenses 750

proceeds
Cash in hand 31/3/2017 3,775
87,076 87,076
Additional information: 1/4/2016 Rs. 31.3.2017 Rs.
Subscription due 240 280
Subscription received in advance 64 100
Stock of medicines 8810 9740
Estimated value of equipment 21200 31600
Building (Cost less depreciation) 40000 38000
Ans. 6.
Income & Expenditure A/c
(Year ended on 31s' March 2017)

To Medicines consumed By Subscriptions 47996
Opening stock 8810 Add:O/S(of2017) 280
Add: Purchases 30590 Advin 2016 64
Less: Closing, stock 9740 29660 Less: O/S (of 2016) 240
Adv of 2017 100
48000
To Doctor's honorarium 9000 By Donations 14500
To salaries 27500 By Interest on Bank FD 7000
To petty expenses 461 By charity show proceeds 10450
To expenses charity show 750
To Depreciation: Equipment 4600
Building 2000

To Surplus 5979
79950 79950

Advance Subscription 100 Cash in Hand 3775
Capital Fund 177316 Subscription o/s 280
Add: Surplus 5979 183295 Stock of Medicines 9740

Bank Fixed Deposit 100000
Equipments Op. 21200

+ Purchases 15000 31600
-Depreciation 4600
Building 40000
- Depreciation 2000 38000
183395 183395

Advance Subscription 64 Cash 7130
Capital Fund (Bal. fig.) 177316 Subscription o/s 240
Stock of Medicines 8810
Bank Fixed Deposit 100000
Equipments 21200
Building 40000
177380 177380
Working Notes: -
1. Bank Deposit 7000 × 100 = Rs. 100000

7
2. Depreciation has been calculated on the basis of:
(Opening balance of the Asset + Purchases of Assets during the yr.) - the
Closing balance of the Asset

ILLUSTRATION 7.
Prepare Income & Expenditure A/c & Balance Sheet of SPORTS Club DELHI
for the yr. ended 31st march. 2017 from the following:
Receipts & Payments A/c

(Year ended 31-3-2017)
Receipts Rs. Payments Rs.
Cash in hand b/d 4500 Salaries (11 months) 1100
Subscriptions: 2015-16 – 100 2700 Tournament exp. 1600

2017-18- 2400
2018-19- 200
Investments 1000
Furniture 400
Sale of old furniture 140 Stationery 1200

(Costing Rs.200)
Tournament Receipts 2000 Sports expenses 15000
Sports Fund 10000 Misc. expenses 200
Donations for Sports 3000 Rent paid up-to may. 1400

2017
Cash in hand 440
22340 22340
The club has 300 members each paying an annual subscription of Rs.10. Rs.70
are still outstanding for the yr2015-.2016. In 2015-2016, 10 members had paid
their subscription for 2017 in advance. Stock of stationery in 2016 was Rs. 100
& in 2017 Rs. 140.
On 1-4-2016, club owned Land & Building valued at Rs. 20.000& furniture of
Rs. 1300. Interest accrued on investment @6% p.a. for 3 months for 2016-17

Ans. 7
Income and Expenditure A/c

(Year ended 31st march 2017)
To Loss on sale of furniture 60 By Subscriptions 2700 3000

Less: O/s (2015-16) 170
Less: Advance (2018-19) 200
Add: Advance (2016-17) 100
Add: O/s (2017-18) 570
To sports expenses 2000
To Salaries 1100 By Tournament Receipts 2000
Add: Outstanding 100 1200 By Accrued interest 15
To Tournament exp. 1600 By Deficit 2405
To stationery Op. Stock100

Add: Purchases 1200
Less: Closing stock 140 1160
To Misc. Exp. 200
To Rent 1400 1200

Less: Prepaid 200
7420 7420

Advance Subscriptions 200 Cash in hand 440
Salary o/s 100 Prepaid Rent 200
Capital Fund 25970 Subscription 500 570
Less: Deficit 2405 23565 Add: O/s 70

Accrued Interst 15
Stock of stationery 140
Investment 1000
Furniture 1300 1500
Add: Purchase 400
Less: Sold 200
Land & Building 20000

23865 23865
Advance Subscription 100 Cash in hand 4500

Capital Fund (Bal fig) 25970 Subscription o/s 170
Stock of stationery 100
Furniture 1300
L and & Building 20000
26070 26070
Source: EDUDEL

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Define NPO NPO's are voluntary organisations founded with objective

1 [Class XII : Accountancy]

• It follows cash basis of • It does not have an opening

Difference between Receipt and payment Cash book

Difference between Income and expenditure Profit and loss a/c

Fund based It refers to the accounting whereby receipts and incomes

[Class XII : Accountancy] 2

Treatment of items definition Treatment Treatment in

Consumable Consumable amount as an Stock of

3 [Class XII : Accountancy]

2. Specific donation like

[Class XII : Accountancy] 4

■ legacy It is in nature of gift As a

5 [Class XII : Accountancy]

sale/ It will not be shown in Profit on sale Purchase in

[Class XII : Accountancy] 6

Outstanding It will be treated as Added in

General General fund will be Interest as General

7 [Class XII : Accountancy]

1st January20..... 31st

(+) Advance/Prepaid→ xxxxx (-)Advance/Prepaid→ xxxxx

Particulars Amounts Particulars Amounts

Statement showing calculation of subscription

Total Subscription received during the year(whether relates xxxxx

Less: Subscription o/s at the beg. Of current year xxxxx

Less: Advance Subscription received during the current xxxxx

[Class XII : Accountancy] 8

Note- subscriptions o/s as on means total o/s subscription on a particular

Treatment Of Consumable Items

From the following information, calculate the amount of stationery to be debited

RECEIPTS AND PAYMENT ACCOUNT(AN EXTRACT).

For the year ended 31st march 2018

Receipts amount Payments amount

Particulars AS at 1st April ,2017 As at 31st March,2018

Creditors of stationery 30000 70000

Advance paid for 10000 15000

Add: advance payments for stationery at the 10000 Asset on 31/3/17

9 [Class XII : Accountancy]

Less: Creditors for stationery at 30000 Liabilities on 31/3/17

NOTE: if purchase of consumable item is given instead of payment than o/s

Payment made to creditors xxxxx

Receipt and Payment Account

Receipts Amount Payments Amount

[Class XII : Accountancy] 10

Capital Receipts: Sports equipments or xxxxx

Sale of office furniture xxxxx Investments xxxxx

11 [Class XII : Accountancy]

Cash at bank (Bank xxxxx Bar expenses xxxxx

Income and Expenditure Account

Expenditure Amount Income Amount

[Class XII : Accountancy] 12

Opening stock of Less: Book value of the asset

13 [Class XII : Accountancy]

Liabilities Amounts Assets Amounts

[Class XII : Accountancy] 14

Receipt and Payment Account