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Preparing Financial Statements of NPO-II

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Question

Show how are the following items dealt with while preparing the final accounts for the year ended 31st March , 2018 of a Not-for-profit Organisation:

Case I Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed . Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .

Case II Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed .Pavilion Fund as at 31st March, 2017 is ₹ 10,00,000, and Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .

Case III Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed .Pavilion Fund as at 31st March, 2017 is ₹ 10,00,000, and Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .Donation Received for Pavilion on 1st January,2018 is ₹ 5,00,000

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Solution

Case 1

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital Fund

20,00,000

Pavilion Work-in-Progress

6,00,000

Case 2

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Pavilion Fund

10,00,000

Pavilion Work-in-Progress

6,00,000

Less: Expenditure on Construction of Pavilion

(6,00,000)

4,00,000

Capital Fund

20,00,000

Add: Pavilion Work-in-Progress

6,00,000

26,00,000

Case 3

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Pavilion Fund

10,00,000

Add: Donation

5,00,000

Pavilion Work-in-Progress

6,00,000

Less: Expenditure on Construction of Pavilion

(6,00,000)

9,00,000

Capital Fund

20,00,000

Add: Pavilion Work-in-Progress

6,00,000

26,00,000

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Similar questions

Q. 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:
Case I
Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed. Capital Fund as at 31st March, 2018 is ₹ 20,00,000.
Case II
Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed. Pavilion Fund as at 31st March, 2018 is ₹ 10,00,000 and Capital Fund as at 31st March, 2018 is ₹ 20,00,000.
Case III
Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed. Pavilion Fund as at 31st March, 2018 is ₹ 10,00,000, and Capital Fund as at 31st March, 2018 is ₹ 20,00,000. Donation Received for Pavilion on 1st January, 2019 is ₹ 5,00,000.

Q. Receipts and Payments Account of Shankar Sports Club is given below, for the year ended 31st March, 2018:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018
Dr.					Cr.
Receipts		₹	Payments	₹
To Cash in Hand (Opening) To Entrance Fee To Donation for Building To Locker Rent To Life Membership Fee To Profit from Entertainment To Subscription		2,600 3,200 23,000 1,200 7,000 3,000 40,000	By Rent By Wages By Billiard Table By Furniture By Interest By Postage By Salary By Cash In Hand (closing)	18,000 7,000 14,000 10,000 2,000 1,000 24,000 4,000



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Prepare Income and Expenditure Account and Balance Sheet with the help of following information:
Subscription outstanding on 31st March, 2017 is ₹ 1,200 and ₹ 2,300 on 31st March, 2018; opening stock of postage stamps is ₹ 300 and closing stock is ₹ 200; Rent ₹ 1,500 related to the year ended 31st March, 2017 and ₹ 1,500 is still unpaid. On 1st April, 2017 the club owned furniture ₹ 15,000, Furniture valued at ₹ 22,500 on 31st March, 2018. The club has a loan of ₹ 20,000(@ 10% p.a.) which was taken , in year ended 31st March,2017.

Q. From the following particulars , calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2018:
₹
(a) Subscriptions in arrears on 31st March ,2017 500
(b) Subscriptions received in advance on 31st March, 2017 for the year ended on 31st March, 2018 1,100
(c) Total Subscriptions received during the year ended 31st March , 2018 35,400
(including ₹ 400 for the year ended 31st March , 2017, ₹ 1,200 for the year ended
31st March, 2019 and ₹ 300 for the year ended 31st March, 2020)
(d) Subscriptions outstanding for year ended 31st March , 2018 400

Q. How are the following items dealt with while preparing Income and Expenditure Account of a club for the year ended 31st March, 2018?

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Outstanding Locker Rent	₹ 4,600	₹ 6,300
Advance Locker Rent	₹ 3,000	₹ 4,000

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