Non-Profit Organisation | Non-Trading Concerns | Problems and Answers

 

 

Exam Based Problems and Answers of NPO

Exam based problems and answers of Non-Trading Concerns or Non-Profit Organisation are the BEST collection for sure shot success in the examination.

These questions are based on board exam.

These questions are set in easy to difficult series.

 

Income and Expenditure Account

Income and expenditure account is similar to profit and loss of trading concern.

It is a summary of all nominal accounts.

Income and expenditure account is prepared by taking all incomes and expenditures.

All incomes are recorded in credit side.

All expenditures are recorded in debit side.

It is based on accruals.

It means, outstanding and prepaid are adjusted in this account.

 

In this account, only revenue expenditures and incomes are recorded.

It is prepared for only an accounting period.

Generally accounting period is one year or twelve months.

From this account, either surplus (excess of income over expenses) or deficit (excess of expenditure over income) is found-out.

The surplus or deficit is transferred to capital fund in the balance sheet; the surplus is added in capital fund but deficit is deducted from the capital fund.

 

 

Balance Sheet of Non-Profit Organization

The balance sheet for non-profit concern is similar to balance sheet of trading concern.

But, there are some differences from trading concern. 

Capital fund (accumulated fund) is written instead of capital of trading company.

There will be no contributors of capital in the non-profit concern.

Therefore, the balance sheet will not have capital account.

If capital fund is not given, total assets and total liabilities will be equal.

 

Debit balances are shown in assets side and credit balances are shown in liabilities side.

Liabilities are separated as capital fund and liabilities.

The balance sheet is a measurement of assets and liabilities on a given date.

 

 

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Exam Based Problems of NPO

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 1

The Club Union furnished you the following statements and information:

Balance Sheet

On 31^st December 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	4,300	Equipment	3,000
Loan	1,200	Furniture	800
		Subscription due	200
		Cash	1,500
	5,500		5,500

 

Receipts and Payments Account

On 31^st December 2020

Receipts	Amount $	Payments	Amount $
To Opening balance	1,500	By Wages and salaries	1,200
To Subscription	6,000	By Sundry expenses	890
To Donation	1,800	By Furniture	2,700
To Sundry receipts	700	By Balance c/d	5,210
	10,000		10,000

Additional adjustments:

(a) Subscription outstanding for 2020 is $400.

(b) Donation is to be capitalized.

(c) Interest on loan @ 10% is outstanding.

(d) Depreciation furniture by 10%.

Required: Income and expenditure account and balance sheet for the year ended 2020

[Answer: Net subscription = $6,200; Surplus = $4,340;

Balance sheet = $11,760; *Depn on furniture = $350]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 2

The opening balance sheet and the receipts and payments account of AB Club are given below:

Balance Sheet, 31^st December 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	18,000	Club premises	15,800
Outstanding salaries	1,200	Furniture	1,500
		Subscription due	1,700
		Cash	200
	19,200		19,200

 

Receipts and payments account on 31^st December 2020

Receipts	Amount $	Payments	Amount $
To Balance b/d	200	By Salaries	5,500
To Subscription	22,500	By Printing	2,500
To Donation	5,500	By Wages	4,800
		By Furniture (1 Jan)	10,000
		By Balance c/d	5,400
	28,200		28,200

Additional adjustments:

(a) Depreciation furniture by @10%

(b) Donation is to be capitalized.

(c) Salary paid includes the outstanding of 2019.

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $20,800; Surplus = $8,050;

Balance sheet = $31,550; *Depn on furniture = $1,150]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 3

Welfare Club provides you the receipts and payments and balance sheet.

Balance Sheet for the year ending 31^st December 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	21,000	Premises	20,000
Loan	5,000	Bank	6,000
	26,000		26,000

 

Receipts and payments account

for the year ending 31^st December 2020

Receipts	Amount $	Payments	Amount $
To Balance b/d	6,000	By Wages and salaries	2,300
To Subscription	10,500	By Interest on loan	500
To Legacies	4,200	By General expenses	4,700
To Rent	1,000	By Loan paid	5,000
		By Balance c/d	9,200
	21,700		21,700

Additional adjustments:

Outstanding on 31^st Dec 2020: Salary $200; Subscription for $500 and Audit fee $700.

Depreciation premises by 5%

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $11,000; Surplus = $2,600;

Balance sheet = $28,700;

 

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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 4

AK Club furnished you the following statements and information: 

Balance Sheet as on 31^st December 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	98,000	Club premises	60,000
Outstanding wages	1,000	Furniture	8,000
		Investment	20,000
		Sports material	5,000
		Subscription due	1,000
		Interest due	200
		Cash	4,800
	99,000		99,000

 

Receipts and payments account for the year ending 31^st December 2020

Receipts	Amount $	Payments	Amount $
To Balance b/d	4,800	By Salary	7,000
To Entrance fee	1,000	By Wages of ground men	9,300
To Tournament receipts	3,000	By Printing and postage	400
To Subscriptions	17,200	By Repairs	300
To Interest	1,000	By Balance c/d	10,000
	27,000		27,000

Additional adjustments:

The entrance fee is to be capitalized.

Outstanding expenses: wages $400 and printing $200.

Subscription due for 2020 $2,000.

Required: Income and expenditure account balance sheet as on 31^st December 2020

[Answer: Net subscription = $18,200; Surplus = $5,400;

Balance sheet = $1,05,000; * Net wages = $8,700;

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 5

AG Club furnished you the following receipts and payment account

As on 31^st December 2020

Receipts	Amount $	Payments	Amount $
To Subscription	1,00,000	By Machinery	80,000
To Entrance fee	30,000	By 10% Investment	1,00,000
To Interest on investment	10,000	By Rent	36,000
To Donation for building	3,00,000	By Printing and stationery	20,000
To Sundry incomes	10,000	By Salary & wages	48,000
		By Furniture	50,000
		By Closing balance	1,16,000
	4,50,000		4,50,000

Additional adjustments:

Subscription includes $8,000 for 2021

Subscription due for 2020 is $4,000

Outstanding salary $2,000 and rent paid for 2021 is $1,000

Required: Income and expenditure account and balance sheet as on 31^st December 2020

[Answer: Net subscription = $96,000; Surplus = $41,000;

Balance sheet = $3,51,000; * Capital fund = Nil;

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 6

The following information is given by AK Club:

Balance Sheet on 31^st March 2020

Liabilities	Amount $	Assets	Amount $
Capital fund	50,000	Club premises	44,000
Outstanding salaris	1,000	Furniture	5,000
		Subscription	800
		Cash	1,200
	51,000		51,000

 

Receipts and payments account for the year ended 31^st March 2021

Receipts	Amount $	Payments	Amount $
To Balance b/d	1,200	By Salary	6,000
To Subscription	20,000	By Printing and stationery	3,200
To Donation	6,000	By Furniture (1 April)	1,500
To Rent received	4,000	By Miscellaneous expenses	1,250
		By Audit fees	3,000
		By Investment	10,750
		By Balance c/d	5,500
	31,200		31,200

Additional adjustments:

(a) Half of the donation is to be capitalized.

(b) Subscription of $600 is outstanding for the current year and $1,000 is received for 2021.

(c) outstanding for printing and stationery $300.

(d) Depreciate furniture by 10% p.a.

Required: Income and expenditure account and balance sheet as on 31^st March 2021

[Answer: Net subscription = $18,800; Surplus = $12,400;

Balance sheet = $66,700; * Depn = $650;

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 7

The balance sheet and receipt and payment account of AB Club are given:

Balance Sheet on 31^st December 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	30,000	Fixed assets	25,000
Outstanding wages	800	Furniture	4,000
		Subscription	600
		receivable	1,200
	30,800	Cash balance	30,800

 

Receipt and Payment Account on 31^st December 2020

Receipt	Amount $	Payment	Amount $
To Balance b/d	1,200	By Wages	13,500
To Subscription	30,000	By Miscellaneous purchase	3,250
To Donation	15,000	By Printing and stationery	2,200
To Miscellaneous sales	3,500	By Furniture (1 Baishakh)	2,500
		By Audit expenses	2,600
		By Investment	20,750
		By Balance c/d	4,900
	49,700		49,700

Additional information:

Of the subscription, $800 was for 2021 and $600 still outstanding for the current year.

Half of the donation is to be capitalized.

Depreciate furniture by 10% per annum.

Prepaid printing and stationery is $200.

Required: Income and expenditure account and balance sheet as on 31^st December 2020

[Answer: Net subscription = $29,200; Surplus = $19,000;

Balance sheet = $57,300; * Depn = $650;

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 8

The balance sheet and receipt and payment account of AF Club are given:

Balance Sheet on 31^st December 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	20,000	Furniture	15,000
Advance subscription	500	Subscription due	600
Rent due	500	Prepaid insurance	400
		Cash	5,000
	21,000		21,000

 

Receipt and Payment Account on 31^st December 2020

Receipt	Amount $	Payment	Amount $
To Balance b/d	5,000	By Rent	10,500
To Donation (capitalized)	10,000	By Insurance	2,600
To Entrance fee	2,000	By Machinery (1 Jan)	10,000
To Interest received	1,000	By General expenses	1,000
To Furniture sold	2,000	By Telephone expenses	1,400
To Subscription	20,000	By Wages	600
		By Balance c/d	13,900
	40,000		40,000

Additional information:

Subscription due for the year 2020 is $1,100.

Depreciate machinery by 10%.

Required: Income and expenditure account and balance sheet

 [Answer: Net subscription = $21,000; Surplus = $7,000;

Balance sheet = $37,000; * Insurance = $3,000]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 9

Given below is the balance sheet of AH Club as on 31^st December 2019:

Liabilities	Amount $	Assets	Amount $
Capital fund	50,000	Cash	2,000
Outstanding wages	1,000	Furniture	8.000
		Buildings	40,000
		Subscription receivable	1,000
	51,000		51,000

 

Receipts and payments account in December end 2020

Receipts	Amount $	Payments	Amount $
To Opening balance	2,000	By Wages	15,000
To Membership fees	25,000	By Printing and stationery	3,000
To Miscellaneous sales	3,000	By Audit fee	2,000
To Donation	20,000	By Investment	20,000
		By Miscellaneous purchase	4,000
		By Furniture (1 Jan)	3,000
		By Closing balance	3,000
	50,000		50,000

Additional information:

Of the membership fees, $1,000 was received for 2021 and $2,000 is still outstanding for 2020.

Depreciation on furniture to be charged @ 10% p.a.

Auditor’s remuneration paid in advance amounting $1,000.

Capitalize the donation fully.

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $25,000; Surplus = $4,900;

Balance sheet = $75,900; * Depn = $1,100]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 10

Receipts and payments account of AD Club as on 31^st December 2020 is given below:

Receipts	Amount $	Payments	Amount $
To Subscription	1,30,000	By Furniture	80,000
To Donation for building	3,00,000	By Investment	1,00,000
To Interest from investment	4,000	By Rent	30,000
To Sundry incomes	10,000	By Salary and wages	40,000
		By Printing and stationery	20,000
		By Miscellaneous expenses	10,000
		By Closing balance	1,64,000
	4,44,000		4,44,000

Additional adjustments:

(a) Accrued interest from investment is $6,000.

(b) Depreciate furniture by 10%

(c) Subscription received for 2021 $8,000 and outstanding subscription for 2020 is $4,000.

(d) Capitalize the donation for building fully.

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $1,26,000; Surplus = $38,000;

Balance sheet = $3,46,000; * Capital fund = Nil]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 11

The balance sheet of AL Sports Club on 31^st December last year is given below:

Liabilities	Amount $	Assets	Amount $
Capital fund	2,00,000	Furniture	1,00,000
Outstanding salaries	20,000	Equipment	1,00,000
		Subscription receivable	15,000
		Bank balance	5,000
	2,00,000		2,20,000

 

Receipts and Payments Account on 31^st December current year

Receipts	Amount $	Payments	Amount $
Opening balance	5,000	Salary	45,000
Subscription	1,00,000	Printing expenses	10,000
Sales of wastage paper	5,000	Equipment (1 Jan)	50,000
Donation	1,25,000	Miscellaneous expenses	15,000
		Audit expenses	5,000
		By Closing balance	1,10,000
	2,35,000		2,35,000

Additional information:

(a) Subscription outstanding for the current year is $10,000.

(b) Salary payable for the year is $5,000.

(c) Depreciation on equipment is to be charged @ 10% p.a.

(d) 50% of the donation is to be capitalized.

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $95,000; Surplus = $87,500;

Balance sheet = $3,55,000; * Depn = $15,000]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 12

The opening balance sheet and the receipts and payments account of the Kathmandu Club are given below:

Balance Sheet on 1^st January 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	1,00,000	Fixed assets	80,000
Advance subscription	5,000	Subscription due	10,000
Outstanding salaries	5,000	Prepaid insurance (June end)	5,000
		Cash at bank	15,000
	1,10,000		1,10,000

 

Receipts and Payments Account

For year ended 31^st December 2020

Receipts			Amount $	Payments		Amount $
To Balance b/d			15,000	By Salaries:           2019		5,000
To Entrance fee			20,000	2020		25,000
To Life membership fee			30,000	By Electricity and telephone		30,000
To Subscription:				By Printing and stationery		10,000
2019			10,000	By General expenses		30,000
2020			80,000	By Seminar and party expenses		20,000
2021			5,000	By Insurance premium (June end)		10,000
To Sundry income			40,000	By Balance c/d		70,000
			2,00,000			2,00,000

Additional adjustments:

(a) Capitalized 50% of the entrance fee.

(b) Depreciation on fixed assets by 10%.

(c) Subscription due for 2020 is $20,000.

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $1,05,000; Surplus = $22,000;

Balance sheet = $1,67,000; *Net insurance = $10,000]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 13

AD Club has the following statements and information:    

Balance Sheet as on 1^st January 2020

Liabilities	Amount $	Assets	Amount $
Capital fund	40,600	Building	30,000
Outstanding expenses:		Subscription due	1,700
Repairs	500	Cash balance	10,300
Salary	900
	42,000		42,000

 

Receipts and Payments Account as on 31^st December 2020

Receipts			Amount $	Payments	Amount $
To Balance b/d			10,300	By Tournament expenses	16,000
To Tournament receipts			15,500	By Salary	6,900
To Entrance fee			5,600	By Repairs	2,500
To Subscription:				By Investment	20,000
2019:		1,500		By Balance c/d	8,000
2020:		20,000
2021:		+  500	22,000
			53,400		53,400

Additional adjustments:

(a) Expenses unpaid: repairs $50 and salary $150.

(b) Subscription due for 2020 is $600.

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $20,600; Surplus = $17,500;

Balance sheet = $58,800; * Net salary = $6,150;

Net repair = $2,050; O/s subs LY for NY = $200]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 14

The opening balance sheet and receipts and payment account of Bank Sport Club are given below:

Balance Sheet as on 1^st January 2020

Liabilities	Amount $	Assets	Amount $
Capital fund	80,000	Fixed assets	70,000
10% Loan	15,000	Subscription due	10,000
Outstanding salaries	5,000	Cash at bank	20,000
	1,00,000		1,00,000

 

Receipts and Payments Account 31^st December 2020

Receipts		Amount $	Payments		Amount $
To Balance b/d		20,000	By Salary:          2019		5,000
To Entrance fees		25,000	2020		30,000
To Subscription:		–	By Electricity and telephone		20,000
2019		10,000	By Stationery		10,000
2020		50,000	By General expenses		15,000
2021		6,000	By Seminar and party expenses		25,000
To Sundry income		30,000	By Balance c/d		36,000
		1,41,000			1,41,000

Additional adjustments:

(a) Half of entrance fees are to be capitalized.

(b) Depreciate fixed assets by 20% p.a.

(c) Subscription due for the year 2020 is $15,000.

(d) Interest on the loan is due for the full year.

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $65,000; Deficit = $8,000;

Balance sheet = $107,000; * Interest = $1,500;

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 15

The Balance Sheet and Receipts and Payments account of AK Club are given under:

Balance Sheet as on 1^st January 2020

Liabilities	Amount $	Assets	Amount $
Capital fund	50,000	Fixed assets	70,000
Loan	25,000	Outstanding Subscription	1,000
Advance subscription	2,500	Cash	7,500
Outstanding Salaries	1,000
	78,500		78,500

 

Receipts and payments account for the year ended 31^st December 2020

Receipts		Amount $	Payments		Amount $
To Balance b/d		7,500	By Salary: for 2019	1,000	–
To Donation		10,000	For 2020	+ 9,000	10,000
To Subscription		–	By Furniture		25,000
For 2019	1,000		By Interest on loan		500
For 2020	52,500		By Rent		9,500
For 2021	+ 2,500	56,000	By Sundry expenses		7,500
To Admission fee		5,000	By Investment		20,000
			By Balance c/d		6,000
		78,500			78,500

Additional adjustments:

(a) Depreciate fixed assets by 10% p.a.

(b) Donation is treated as capital income

Required: Income and expenditure account and balance sheet on the year ended 2020

[Answer: Net subscription = $55,000; Surplus = $24,000;

Balance sheet = $111,500; * Subs ANY = $2,500;

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 16

The balance sheet and receipts and payments account of SK Cricket Club are given below:

Balance Sheet

As on 31^st December 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	33,620	Fixed assets	30,000
Loan	5,000	Outstanding subscription	380
Outstanding expenses	1,400	Outstanding locker’s rent	240
Advance subscription	600	Cash in hand	10,000
	40,600		40,600

 

Receipts and Payments Account as on 31^st December 2020

Receipts		Amount $	Payments		Amount $
To Opening balance of cash		10,000	By General expenses:
To Subscription			2019	1,200
2019:	200		2020	+ 2,000	3,200
2020:	2,100		By Investment		4,000
2021:	+  150	2,450	By Interest paid		400
To Entrance fee		800	By Miscellaneous expenses		2,000
To Locker’s rent received		700	By Closing balance of cash		8,350
To Miscellaneous receipts		4,000
		17,900			17,900

Additional adjustments:

Depreciate fixed assets @ 10%

Capitalize the entrance fees

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $2,700; Deficit = $240;

Balance sheet = $39,530; * O/s subs LY for NY = $200]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 17  

The balance sheet and receipt and payment account of AG Club are given:

Balance Sheet on 31^st December 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	81,200	Building	95,000
Outstanding sundry expenses	2,800	Subscription due	3,400
Loan	37,000	Bank balance	22,600
	1,21,000		1,21,000

 

Receipt and Payment Account on 31^st December 2020

Receipt		Amount $	Payment		Amount $
To Balance b/d		22,600	By Sundry expenses		32,000
To Entrance fee		11,200	By Salary		13,000
To Subscription:			By Furniture		40,000
2019	3,000		By Repair		5,800
2020	40,000		By Balance c/d		18,000
2021	+ 1,000	44,000
To Sundry income		31,000
		1,08,800			1,08,800

Additional information:

Subscription due for the year 2020 is $1,200.

Provide depreciation on building at 10%.

Required: Income and expenditure account and balance sheet

 [Answer: Net subscription = $41,200; Surplus = $25,900;

BS = $145,100; * O/s subscription LY for NY = $400]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 18

The balance sheet and receipt and payment account of AG Club are given:

Balance Sheet on 31^st December 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	14,000	Furniture	5,000
Loan	4,000	Subscription due	3,000
Outstanding salary	1,500	Equipment	7,000
		Cash in hand	4,500
	19,500		19,500

 

Receipt and Payment Account on 31^st December 2020

Receipt		Amount $	Payment	Amount $
Opening balance		4,500	Salary	6,000
Subscription:			Wages	2,000
2019	3,000		Rent	3,000
2020	12,000		Furniture	9,000
2021	+ 2,000	17,000	Closing balance	5,500
Donation		4,000
		25,500		25,500

Additional information:

(a) Depreciate furniture by 10%.        

(b) 50% donation is to be capitalized.

(c) Subscription due for 2020 is $600.

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $12,600; Surplus = $3,700;

Balance sheet = $25,700; * Depn = $1,400]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 19 

Following transactions of Apollo Community Hospital are given:

Balance Sheet on 1^st January 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	1,45,500	Machinery	1,20,000
Outstanding salary	1,500	Furniture	10,000
Advance subscription	3,000	Subscription due	2,000
		Cash and bank	18,000
	1,50,000		1,50,000

 

Receipt and Payment Account on 31^st December 2020

Receipt		Amount $	Payment	Amount $
To Balance b/d		18,000	By Salary	20,000
To Subscription:			By Stationery	2,500
2019	2,000		By Furniture (1 January)	15,000
2020	+ 29,000	31,000	By Repair	1,500
To Sundry receipt		5,000	By Balance c/d	21,000
To Entrance fees		6,000
		60,000		60,000

Additional information:

(a) Depreciation on furniture @ 15% p.a.   

(b) Half of the entrance fees are to be capitalized.

(c) Outstanding salary is $2,000;

(d) Subscription due for 2020 is $4,000

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $36,000; Surplus = $15,750;

Balance sheet = $1,66,250; * Depn = $3,750]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 20

The balance sheet and receipt and payment account of AB Club are given:

Balance Sheet on 31^st December 2019

Liabilities	Amount $	Assets	Amount $
Capital fund	2,00,000	Fixed assets	1,50,000
Outstanding salary	10,000	Subscription due	20,000
		Cash and bank	40,000
	2,10,000		2,10,000

 

Receipt and Payment Account on 31^st December 2020

Receipt		Amount $	Payment		Amount $
To Balance b/d		40,000	By Salary:
To Entrance fees		60,000	2019	10,000
To Subscription:			2020	+ 70,000	80,000
2019	20,000		By General expenses		30,000
2020	110,000		By Seminar expenses		50,000
2021	+ 20,000	1,50,000	By Electricity & telephone		45,000
To Sundry income		50,000	By Stationery		25,000
			By Balance c/d		70,000
		3,00,000			3,00,000

Additional information:

(a) Entrance fees are to be capitalized.

(b) Depreciate fixed assets by 10%.

(c) Subscription due for the current year is $20,000.

(d) Outstanding general expenses is $5,000.

Required: Income and expenditure account and balance sheet

[Answer: Net subscription = $1,30,000; Deficit = $60,000;

Balance sheet = $2,25,000; * Depn = $15,000]

 

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