Chapter 1 Company Accounts Financial Statements of Not-for-Profit Organisations

TS Grewal Solutions for Class 12 Accountancy Vol 1 Chapter 1

TS Grewal Solutions for Class 12 Accountancy Chapter 1 Company Accounts Financial Statements of Not-for-Profit Organisations is considered to be an important concept to be studied thoroughly by the students. Here, we have provided TS Grewal Accountancy solutions for class 12.

Board CBSE
Class Class 12
Subject Accountancy
Chapter Chapter 1
Chapter Name Company Accounts Financial Statements of Not-for-Profit Organisations
Number of questions solved 07
Category TS Grewal

This Chapter 1 Company Accounts Financial Statements of Not-for-Profit Organisations- Fundamentals explains the below-mentioned concepts:

  • Meaning and characteristics of Not-for-Profit Organisations
  • Receipt and Payment account
  • Income and Expenditure account
  • Balance Sheet
  • Some Peculiar items

TS Grewal Solutions for Class 12 Accountancy Chapter 1- Company Accounts Financial Statements of Not-for-Profit Organisations

Question 1

From the data provided below, prepare Receipts and Payments account of Buddies club, Bangalore, for the year ended March 2018.

Cash balance on 1st April 2017 – 50,000/-; Subscriptions – 4,00,000/-; Donations – 1,00,000/-; Entrance fees – 45,000/-; Rent realised from club hall – 52,500/-; Electricity charge – 34,400/-; Taxes – 5,000/-; Salaries and wages – 2,15,000/-; Honorarium to the Secretary – 50,000/-; Interest received on investments – 30,000/-; Printing and Stationery – 4,000/-; Petty expenses – 9,500/-; Insurance premium paid – 3,000/-.

Solution:

Buddies Club, Bangalore

Dr. Receipts and Payments account for the year ended 31st March 2018 Cr.
Receipts Payments
To balance b/d (cash)

To subscriptions

To donations

To entrance fees

To Rent realised from club hall

To interest on investments

50,000

4,00,000

1,00,000

45,000

52,500

30,000

By Electricity charges

By taxes

By Salaries and wages

By Printing and Stationery

By Honorarium to the Secretary

By Petty expenses

By Insurance premium paid

By balance c/d (balancing figure)

34,400

5,000

2,15,000

4,000

50,000

9,500

3,000

3,56,600

6,77,500 6,77,500

Question 2

From the following data, prepare an Income and Expenditure account:

Particulars
  • Fees collected, including ₹. 80,000/- for the previous year
  • Fees outstanding for the year
  • Salary paid including ₹. 3,000/- for the previous year
  • Salary outstanding at the year end
  • Entertainment expenses
  • Tournament expenses
  • Meeting expenses
  • Travelling expenses
  • Purchase of books and periodicals, including ₹.19,000 for purchase of books
  • Rent
  • Postage and Telephones
  • Printing and Stationery
  • Donations received
3,80,000

10,000

28,000

1,000

3,000

12,000

18,000

6,000

29,000

10,000

15,000

4,000

20,000

Solution:

Dr. Income and expenditure account for the year ended… Cr.
Expenditure Income
To Salaries – 28,000

(+) Outstanding at the end 1,000

29,000

(-) O/S at the beginning 3,000

To entertainment expenses

To Tournament expenses

To meeting expenses

To rent

To travelling expenses

To books and periodicals 29,000

(-) Purchase of books 19,000

To postage and telephones

To printing and stationery

To surplus: Excess of income over expenditure

26,000

3,000

12,000

18,000

10,000

6,000

10,000

15,000

4,000

2,26,000

By fees 3,80,000

(+) Outstanding at the end 10,000

3,90,000

(-) O/S at the beginning 90,000

By donations

3,10,000

20,000

3,30,000 3,30,000

Question 3

1st April 2018, assets and liabilities of India club are mentioned below:

Assets

Land and Building

Furniture

Cash in hand

Subscriptions receivable

3,00,000

70,000

30,000

50,000

Liabilities

Bank overdraft

Outstanding salaries

30,000

20,000

Now, ascertain the capital fund as on 1st April 2018.

Solution:

Balance Sheet of India club as at 1st April 2018

Liabilities Assets
Bank overdraft

Outstanding salaries

Capital fund*(balancing figure)

30,000

20,000

4,00,000

Cash in hand

Subscriptions receivable

Land and Building

Furniture

30,000

50,000

3,00,000

70,000

4,50,000 4,50,000

*Capital fund = Total Assets – Total Liabilities

= 4,50,000-50,000

= ₹. 4,00,000

Question 4

From the following data of Receipts and Payments account and additional data, calculate the income from subscriptions for the year ended 31st March 2018 and show it in the final accounts of the club:

Dr. Receipts and Payments account for the year ended 31st March 2018 Cr.
Receipts Payments
To Subscriptions 1,00,000
31/03/2017 31/03/2018
Subscriptions outstanding 20,000 40,000
Subscriptions received in advance 30,000 20,000

Solution:

Dr. Income and expenditure account for the year ended 31/03/2018 Cr.
Expenditure Income
By subscriptions 1,00,000

(+) Subscription O/S on

31/3/2018 40,000

Subscription received in

Advance on 31/3/2017 30,000

1,70,000

(-) Subscription received in

Advance on 31/3/2018 20,000

Subscription O/S on

31/3/2017 20,000

1,30,000

Balance Sheet as on 31st March 2018

Liabilities Assets
Subscription received in

Advance

20,000 Subscription O/S 40,000

Question 5

Subscriptions received during the year ended 31st March 2019 are:

Year ended March 31st, 2018 4,000
Year ended March 31st, 2019 2,20,000
Year ended March 31st, 2020 10,000 2,70,000

There are 500 members, each paying an annual subscription of ₹. 600/-. ₹. 5,000/- were in arrears for the year ended 31st March 2018 at the beginning of the year ended 31/03/2019. Compute the subscriptions to be shown in Income and Expenditure account for the year ended 31/03/2019 and also show treatment of subscriptions in the income and expenditure account and Balance sheet.

Solution:

Subscriptions receivable for the year ended 31/03/2019

= Number of members X Annual subscription

= 500 X 600 = 3,00,000/-

Subscriptions outstanding

= Total subscriptions – Subscription received for the year-end 31/03/2019

= 3,00,000 – 2,20,000 = 80,000/-

Dr. Income and Expenditure account for the year ended 31st March 2019 Cr.
Expenditure Income
By subscription received 2,20,000

(+) Outstanding 80,000

3,00,000

Balance Sheet as at 31st March 2019

Liabilities Assets
Subscription received in advance 10,000 Subscription Outstanding:

For 2017-18 [5,000 – 4,000]

For 2018 – 19

1,000*

80,000

*Subscription in arrears for the year ended 31/03/2018 at the beginning of 2018-19 was 5,000/-, out of which 4,000/- was received in the year ended 31/03/2019.

Question 6

On the ground of the data furnished below, compute the amount of stationery to be debited to the Income and Expenditure account of the Sports Club for the year ended 3103/2019.

Particulars 1st April 2018 (₹) 31st March 2019 (₹)
Stock of stationery 90,000 50,000
Creditors for stationery 1,00,000 1,20,000

Stationery purchased during the year ended 31/03/2019 was ₹. 5,00,000/-

Solution:

Sports Club

Dr. Income and expenditure account for the year ended 31st March 2019 Cr.
Expenditure Income
To stationery consumed (working note) 5,40,000

Working Note:

Stationery consumed (2018-2019)

Opening stock of stationery + Purchase of stationery – Closing stock of stationery

= 90,000 + 5,00,000 -50,000

= ₹. 5,40,000/-

Question 7

From the following data compute the amount that will be shown against the stationery account in the Income and Expenditure account for the year ended 31/03/2019:

Particulars 01/04/2018 (₹) 31/03/2019 (₹)
Creditors for stationery 5,000 12,000
Stock for stationery 15,000 30,000

During the year ended 31/03/2019, payment made to creditors amounted to 57,000/-. Stationery purchased in cash during the year was 20% of the total purchase of stationery.

Solution:

  • Calculation of credit purchases of stationery:
Dr. Creditors for Stationery Account Cr.
Particulars Particulars
To bank a/c

To balance c/d

57,000

12,000

By balance b/d

By stock by stationery a/c [Credit purchase] (balancing figure)

5,000

64,000

69,000 69,000
  • Calculation of cash purchases of stationery:

Let the total X be ‘x

Cash purchases would be 20% of ‘x’, i.e., ‘x’/5

Then, credit purchase = 80% of ‘x’, i.e., 4‘x’/5

x’/5 + 64,000 = ‘x

4‘x’/5 = 64,000/-

X’ = 64,000 X 5/4 = 80,000 (Total Purchase)

Cash Purchase = Total purchase – Credit purchase

= 80,000 – 64,000 = 16,000/-

  • Stationery consumed to be debited to Income and Expenditure account:

Opening stock of the stationery + Purchases [cash+credit] – Closing stock of the stationery

= 15,000 + [64,000+16,000] – 30,000

= 15,000 + 80,000 – 30,000

= 15,000 + 50,000

= ₹. 65,000/-

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