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.

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Solution

Case 1

Balance Sheet

as on March 31, 2019

Liabilities

Amount

(₹)

Assets

Amount

(₹)

Capital Fund

20,00,000

Pavilion Work-in-Progress

6,00,000

Case 2

Balance Sheet

as on March 31, 2019

Liabilities

Amount

(₹)

Assets

Amount

(₹)

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, 2019

Liabilities

Amount

(₹)

Assets

Amount

(₹)

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 , 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

Q. Following is the extract of the Balance Sheet of Neelkant and Mahadev as on 31st March, 2018.

BALANCE SHEET as at 31st March, 2018
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During the year, Mahadev's drawings were ₹ 30,000. Profits during the year ended 31st March, 2018 is ₹ 10,00,000. Calculate interest on capital @ 5% p.a. for the year ending 31st March, 2018.

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Balance Sheet as on March 31, 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund	20,00,000	Pavilion Work-in-Progress	6,00,000