Maharashtra State BoardHSC Commerce 12th Board Exam
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Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board chapter 2 - Accounts of ‘Not for Profit’ Concerns [Latest edition]

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Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board - Shaalaa.com

Chapter 2: Accounts of ‘Not for Profit’ Concerns

Exercise 2Practical Problems
Exercise 2 [Pages 111 - 112]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 2 Accounts of ‘Not for Profit’ Concerns Exercise 2 [Pages 111 - 112]

Select the most appropriate alternative from those given below.

Exercise 2 | Q 1. A) 1. | Page 111

Not for Profit Concern renders __________ services to public at large.

  • Commercial

  • Social

  • Individual

  • Group

Exercise 2 | Q 1. A) 2. | Page 111

Donation for Scholarship Fund is ______.

  • Capital Receipt

  • Revenue Receipt

  • Capital Expenditure

  • Revenue Expenditure

Exercise 2 | Q 1. A) 3. | Page 111

Income and Expenditure Account is a ________ Account.

  • Capital 

  • Real

  • Personal

  • Nominal

Exercise 2 | Q 1. A) 4. | Page 111

Outstanding subscription at the end of the Accounting Year represents _______.

  • Liability

  • An Expenditure

  • An Asset

  • Capital Fund

Exercise 2 | Q 1. A) 5. | Page 112

Subscription received in advance during the accounting year is _______.

  • An income

  • An expenditure
  • An asset

  • A liability

Exercise 2 | Q 1. A) 6. | Page 112

Excess of Income over Expenditure is termed as ___________.

  • Deficit

  • Profit

  • Surplus

  • Loss

Exercise 2 | Q 1. A) 7. | Page 112

Not for Profit Concerns prepares _________ account instead of Profit and Loss account to know the result.

  • Trading

  • Income and Expenditure

  • Cash

  • Receipt and Payments

Exercise 2 | Q 1. A) 8. | Page 112

The closing balance of Receipts and Payments account usually represent _______.

  • Closing Stock

  • Cash and Bank Balance

  • Surplus

  • Deficit

Exercise 2 | Q 1. A) 9. | Page 112

Not for Profit Organization is also called __________ organization.

  • Service

  • Trading

  • Profit Making

  • Commercial

Exercise 2 | Q 1. A) 10. | Page 112

Expenditure on Purchase of Building is a ________ Expenditure.

  • Capital

  • Revenue

  • General

  • Recurring

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Exercise 2 [Page 112]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 2 Accounts of ‘Not for Profit’ Concerns Exercise 2 [Page 112]

Exercise 2 | Q 1. B) 1. | Page 112

Write the word/phrase/term, which can substitute the following sentence.

The Form of Organization providing services to the society only.

Exercise 2 | Q 1. B) 2. | Page 112

Write the word/phrase/term, which can substitute the following sentence.

An account which is prepared by Not for Profit concern instead of Profit and Loss Account.

Exercise 2 | Q 1. B) 3. | Page 112

Write the word/phrase/term, which can substitute the following sentence.

Donation received for a specific purpose.

Exercise 2 | Q 1. B) 4. | Page 112

Write the word/phrase/term, which can substitute the following sentence.

The receipts which are not recurring in nature.

Exercise 2 | Q 1. B) 5. | Page 112

Write the word/phrase/term, which can substitute the following sentence.

An Account which records only revenue items in case of Not for profit concern.

Exercise 2 | Q 1. B) 6. | Page 112

Write the word/phrase/term, which can substitute the following sentence.

Accounts which records only cash transactions in case of Not for Profit Concern.

Exercise 2 | Q 1. B) 7. | Page 112

Write the word/phrase/term, which can substitute the following sentence.

The income which is earned during the year but not received during the year.

Exercise 2 | Q 1. B) 8. | Page 112

Write the word/phrase/term, which can substitute the following sentence.

The credit balance of Income and Expenditure Account.

Exercise 2 | Q 1. B) 9. | Page 112

Write the Word/ Term/ Phrase which can substitute the following statement:

To excess of total assets over total liabilities of a Not for Profit concern.

Exercise 2 | Q 1. B) 10. | Page 112

Write the word/phrase/term, which can substitute the following sentence.

All such receipts which are non-recurring in nature and not forming a part a regular flow of income.

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Exercise 2 [Page 112]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 2 Accounts of ‘Not for Profit’ Concerns Exercise 2 [Page 112]

Exercise 2 | Q 1. C) 1. | Page 112

State whether the following statement is True or False with reasons.

Not for Profit Concerns do not have profit motive.

  • True

  • False

Exercise 2 | Q 1. C) 2. | Page 112

State whether the following statement is True or False with reasons.

Charitable Institutions prepare Profit and Loss Account, at the end of every financial year.

  • True

  • False

Exercise 2 | Q 1. C) 3. | Page 112

State whether the following statement is True or False with reasons.

There is no difference between Receipts and Payments Account and Income and Expenditure Account.

  • True

  • False

Exercise 2 | Q 1. C) 4. | Page 112

State whether the following statement is True or False with reasons.

Income and Expenditure Account represents either surplus or deficit.

  • True

  • False

Exercise 2 | Q 1. C) 5. | Page 112

State whether the following statement is True or False with reasons.

Receipts and Payments Accounts do not have any opening balance.

  • True

  • False

Exercise 2 | Q 1. C) 6. | Page 112

State whether the following statement is True or False with reasons.

Not for Profit concerns do not prepare Balance Sheet.

  • True

  • False

Exercise 2 | Q 1. C) 7. | Page 112

State whether the following statement is True or False with reasons.

Purchases of Sports Equipments is a Capital Expenditure.

  • True

  • False

Exercise 2 | Q 1. C) 8. | Page 112

State whether the following statement is True or False with reasons.

Income and Expenditure Account is Real Account.

  • True

  • False

Exercise 2 | Q 1. C) 9. | Page 112

State whether the following statement is True or False with reasons.

Receipts and Payments Account contains only the transactions relating to the current year.

  • True

  • False

Exercise 2 | Q 1. C) 10. | Page 112

State whether the following statement is True or False with reasons.

Excess of Assets over liabilities is called Capital Fund.

  • True

  • False

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Exercise 2 [Page 113]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 2 Accounts of ‘Not for Profit’ Concerns Exercise 2 [Page 113]

Fill in the blanks.

Exercise 2 | Q 1. D) 1. | Page 113

Not for Profit Organization never is engaged in __________ activities.

Exercise 2 | Q 1. D) 2. | Page 113

Not for Profit organization is called ________ organization.

Exercise 2 | Q 1. D) 3. | Page 113

Receipts and Payments Account falls under the category of _____ Account.

Exercise 2 | Q 1. D) 4. | Page 113

In Receipts and Payments Account the summary of _____ transactions are recorded.

Exercise 2 | Q 1. D) 5. | Page 113

Income and Expenditure Account is similar to the _____ account of Trading Concern.

Exercise 2 | Q 1. D) 6. | Page 113

Credit side of Receipts and Payments Account shows cash ______.

Exercise 2 | Q 1. D) 7. | Page 113

Income and Expenditure Account is a _____ Account.

Exercise 2 | Q 1. D) 8. | Page 113

Mumbai University prepares _______ Account instead of a Profit and Loss account.

Exercise 2 | Q 1. D) 9. | Page 113

Subscription received from the members is considered as ________ receipts.

Exercise 2 | Q 1. D) 10. | Page 113

The transactions recorded in Income and Expenditure Account are related only to the _______ year.

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Exercise 2 [Pages 112 - 113]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 2 Accounts of ‘Not for Profit’ Concerns Exercise 2 [Pages 112 - 113]

Answer in one sentence only.

Exercise 2 | Q 1. E) 1. | Page 113

What do you mean by ‘Not for Profit’ Concern?

Exercise 2 | Q 1. E) 2. | Page 113

Which organisations prepare Income and Expenditure Account?

Exercise 2 | Q 1. E) 3. | Page 113

What is Receipts and Payments Account?

Exercise 2 | Q 1. E) 4. | Page 113

Why Income and Expenditure Account is prepared?

Exercise 2 | Q 1. E) 5. | Page 113

What is Capital Fund?

Exercise 2 | Q 1. E) 6. | Page 113

What is a Subscription?

Exercise 2 | Q 1. E) 7. | Page 112

What is ‘Legacy’?

Exercise 2 | Q 1. E) 8. | Page 113

What is Surplus?

Exercise 2 | Q 1. E) 9. | Page 113

What do you mean by Non-recurring Expenses?

Exercise 2 | Q 1. E) 10. | Page 113

To which account ‘Surplus’ or ‘Deficit’ is transferred?

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Exercise 2 [Pages 113 - 114]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 2 Accounts of ‘Not for Profit’ Concerns Exercise 2 [Pages 113 - 114]

Exercise 2 | Q 1. F. I. | Page 113

Complete the Table:

Sr. No.  Income (₹) Expenditure (₹) Surplus/Deficit (₹)
1. 10,000 ? 5,000 (Deficit)
2. 8,000 ? 4,000 (Surplus)
3. ? 15,000 8,000 (Surplus)
4. 7,500 9,000 ?
5. 15,000 11,300 ?
Exercise 2 | Q 1. F. II. | Page 113

Complete the Table:

Salaries paid during the year

Sr.
No
Total ₹ Prepaid/Outstanding Expenditure for the year
1 1,100 Prepaid 100 ?
2 2,700 Prepaid ? 2,000
3 8,250 Prepaid ? 6,650
4 1,200 Outstanding 200 ?
5 ? Outstanding 600 5,100
6 1,800 Outstanding ? 2,200
Exercise 2 | Q 1. F. III. | Page 114

Complete the Table:

Rent received during the year

Sr.No Total Received ₹ Rent received in Advance/Accrued Income for the year ₹
1 1,300 Received in Advance 200 ?
? Received in Advance 400 1,400
2,650 Received in Advance ? 2,000
4 ? Accrued 290 3,190
5 1,700 Accrued ? 2,150
6 2,600 Accrued 500 ?
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Exercise 2 [Page 114]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 2 Accounts of ‘Not for Profit’ Concerns Exercise 2 [Page 114]

Calculate the following:

Exercise 2 | Q 1. G) 1. | Page 114

10% p.a. Depreciation on Furniture ₹ 50,000 (for three months)

Exercise 2 | Q 1. G) 2. | Page 114

12% p.a. Interest on Bank loan ₹ 80,000 for 1 year.

Exercise 2 | Q 1. G) 3. | Page 114

Opening stock of stationery ₹ 5,000, purchases of stationery ₹ 7000, outstanding stationery bill ₹ 12,000, closing stock ₹ 1000. What is the amount of stationery consumed?

Exercise 2 | Q 1. G) 4. | Page 114

Salary ₹ 10,000, outstanding salary ₹ 5,000. Calculate the salary to be debited to  Income and Expenditure Account.

Exercise 2 | Q 1. G) 5. | Page 114

Library Books ₹ _________ ? Less 10 % Depreciation ₹ 5,000 = ₹ 45,000

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Exercise 2 [Page 114]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 2 Accounts of ‘Not for Profit’ Concerns Exercise 2 [Page 114]

Exercise 2 | Q 1. H) 1. | Page 114

Find odd one:

  • Trading Account

  • Profit and Loss Account

  • Receipts and Payments Account,

  • Balance Sheet.

Exercise 2 | Q 1. H) 2. | Page 114

Find odd one:

  • Machinery

  • Furniture

  • Computers

  • Salaries.

Exercise 2 | Q 1. H) 3. | Page 114

Find odd one :

  • Subscription

  • Stationery

  •  Interest Received

  • Locker Rent received

Exercise 2 | Q 1. H) 4. | Page 114

Find odd one :

  • Reliance Industries

  • Venna Vidya Mandir

  • Laxmi Hospital

  • Manoj Sports club

Exercise 2 | Q 1. H) 5. | Page 114

Find odd one:

  • Surplus

  • Deficit

  • Net Profit

  • Capital fund

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Practical Problems [Pages 114 - 124]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 2 Accounts of ‘Not for Profit’ Concerns Practical Problems [Pages 114 - 124]

Practical Problems | Q 1 | Page 114
(Calculation of stationery consumed during the year)
Liabilities Amt. ₹ Amt. ₹ Assets Amt. ₹ Amt. ₹
      Stock of Stationery   400

 

Dr Receipts and Payments Account for the year ending 31.03.2019 Cr
Receipts Amt. ₹ Amt. ₹ Payments Amt. ₹ Amt. ₹
      By Stationery Purchased   6,300

Adjustments :

1. ₹ 1,000 Outstanding for Stationery bill.

2. Stock of Stationery as on 31.03.2019 was valued at ₹1,800

With the above information, calculate the amount of Stationery consumed during the year and show its presentation in final Accounts of a concern.

Practical Problems | Q 2 | Page 115
Balance Sheet as on 01.04.2018
Liabilities Amt. ₹ Amt. ₹ Assets Amt.  ₹ Amt .₹

Subscription received in Advance for 2018 - 19

  20,000 Outstanding Subscription    
      2016 - 17 26,000 61,000
      2017 - 18 35,000

 

Dr Receipts and Payments Account for the year ending 31.03.2019. Cr
Receipts Amt. ₹ Amt. ₹ Payments Amt.₹ Amt. ₹
To Subscriptions          
2016 - 17 23,000 4,84,000      
2017 - 18 30,000      
2018 - 19 4,10,000      
2019 - 20 21,000      

Adjustments :

Outstanding Subscription for 2018 - 19 is ₹ 32,000

With the above information present the item Subscription in Income and Expenditure Account for the year ended 31.03.2019 Balance Sheet as on the date.

Practical Problems | Q 3 | Page 115
Dr Receipts and Payments Account for the year ending 31.03.2018. Cr
Receipts Amt. ₹ Amt. ₹ Payments Amt.₹ Amt. ₹
To Subscriptions          
2016 - 17 2,000        
2017 - 18 60,000        
2018 - 19 4,500 66,500      

Adjustments :

Subscription Outstanding for the year 2017 - 18 is ₹ 6,000.

During previous year Subscription received in advance for 2017 - 18 is ₹ 2,000.

Outstanding subscription of 2016 - 2017 is ₹ 2,500

With the help of the above information present the item Subscription in Income and Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that date.

Practical Problems | Q 4 | Page 116

Following is the Receipts and Payments Account of “Satara Sports Club” Satara Prepare Income and Expenditure Account for the year ending 31.03.2019.

Dr Receipts and Payments Account for the year ending 31.03.2019. Cr
Receipts Amt ₹ Amt ₹ Payments Amt ₹ Amt ₹
To Balance b/d     By Salaries   5,000
Cash in hand 4,500 16,500 By Rent (Including ₹ 2,000 for 2017 - 18)   5,000
Cash at Bank 12,000 By Electricity Charges   1,450
To Subscription     By Fixed Deposit   60,000
2017 - 18 4,000 52,000 By Printing and Stationery   750
2018 - 19 44,500 By General Expenses (Including ₹ 500 paid for next year)   5,500
2019 - 20 3,500 By Sports Material Purchased   40,000
To Entrance fees   8,000 By Balance c/d    
To Donation for Building fund   70,000 Cash in Hand 8,900 33,900
To Interest   600 Cash at Bank 25,000

To Sale of furniture
(Book Value ₹ 8000)

  4,500      
    1,51,600     1,51,600

Adjustments:

1) Outstanding Subscription for Current Year is ₹ 4,500

2) Outstanding Rent for Current Year amounted to ₹ 1,000

3) Entrance Fees are to be treated as Revenue Income

4) Stock of Sports Material as on 01.04.2018 ₹ 6,000 and on 31.03.2019 ₹ 14,000

Practical Problems | Q 5 | Page 117

“Bhartiya Kala Kendra”, Solapur gives you the following information, for the year ended on 31.03.2018 Prepare Income and Expenditure Account for the year ending 31.03.2018

Dr Receipts and payments Account for the year ending 31.03.2018. Cr
Receipts Amount ₹ Payments Amount ₹
To Balance b/d   By Stationery 600
Cash in Hand 200 By Furniture Purchased 7,000
Cash at Bank 12,500 By Investments in govt securities 14,000
To Locker Rent 400 By Expenses of Drama 3,000
To Entrance fees 2,900 By Postage 450
To Sale of old newspapers 250 By Magazine and newspaper 600
To Receipts from Drama 9,000 By Salaries 4,400
To Legacies 12,000 By Balance c/d  
To Interest of Govt. Securities 400 Cash in Hand 700
To Miscellaneous Receipts 400 Cash at Bank 7,300
  38050   38050

Additional Information :

1) Legacies are to be capitalized

2) Outstanding Salary ₹ 200

3) 50 % of Entrance Fees are to be Capitalised

Practical Problems | Q 6 | Page 117

From the following particulars relating to “Radha-Krishna Charitable Hospital” Pune. Prepare Income and Expenditure Account for the year ending 31.03.2020 and Balance Sheet as on that date.

Dr Receipts and payments Account for the year ending 31.03.2020. Cr
Receipts Amount ₹ Payments Amount ₹
To Balance b/d   By Medicines Purchased 41,000
Cash 8,230 By General Expenses 1,050
To Subscriptions 52,000 By Salaries 23,500
To Donations (General) 17,500 By Stationery 2,000
To Interest in Investments 10,000 By Expenses on Charity Show 550
To Proceeds from Charity Show 8,530 By Surgery and Dispensary Exp 4,200
    By Equipments 10,000
    By Balance c/d  
    Cash in Hand 960  
    Cash at Bank 13,000 13,960
  96,260   96,260

Additional Information :

Particulars 01.04.2019 ₹ 31.03.2020 ₹
1. Subscription Due 310 350
2. Subscription Received in Advance 600 150
3. Stock of Medicine 8,000 11,000
4. Estimated Value of Equipment 15,000 ?
5. Building 40,000 ?
6. Capital Fund 1,70,940 ?
7. 10 % Investment 1,00,000 ?

Provide Depreciation on Equipments ₹ 1,900 and on Building ₹ 1,500

Practical Problems | Q 7 | Page 118

From the following transactions of Receipts and Payments Account of “Pavan - Putra Hanuma Vyayamshala” Parbhani, and the adjustments given, you are required to prepare Income and Expenditure Account and Balance Sheet as on 31st March 2019.

Dr Receipts and Payments Account for the year ending 31.03.2019. Cr
Receipts Amount
Payments Amount
To Balance b/d   By Salaries 6,000
Cash in Hand 5,000 By Entertainment Expenses 2,480
To Subscriptions   By Sundry Expenses 1,300
2018 - 19 18,000   By Electricity Charges 1,200
2019 - 20 410 18,410 By Rent 700
To Donations 6,000 By Investment 15,000
To Receipts from Entertainment 5,400 By Printing and Stationery 800
To Interest 400 By Postage 3,200
To Entrance fees 6,200 By Fixed Deposit 3,900
    By Balance c/d  
    Cash in Hand 830  
    Cash at Bank 6000 6,830
  41,410   41,410

Adjustments:

1) There are 500 members paying an annual Subscription of ₹ 50 each

2) Outstanding Salary was ₹ 1,200

3) The Assets on 01.04.2018 were as follows: Building ₹ 50,000, Furniture ₹ 15,000

4) Provide depreciation on Building and Furniture at 5% and 10% respectively.

5) 50% Entrance Fee is to be capitalized.

6) Interest on Investment at 5% p. a. has accrued for 6 months.

7) Capital Fund ₹ 70,000 on 01.04.2018

Practical Problems | Q 8 | Page 119

“Jeevan Jyoti Art Circle” a newly established concern has presented the following information.

Dr Receipts and Payments Account for the year ending 31.03.2018. Cr
Receipts Amount
₹ 
Amount
₹ 
Payments Amount
₹ 
Amount
₹ 
To Admission fees   22,000 By Furniture   12,000
To Subscriptions   40,000 By Stationery   4,000
To Donations   18,000 By Office Rent   2,600
      By Newspapers & Periodicals   300
      By Telephone Expenses   560
      By Investments   23,000
      By Balance c/d    
      Cash in Hand 7,540  
      Cash at Bank 30,000 37,540
    80,000     80,000

Adjustments:

1) Subscription Outstanding for the year was ₹ 5,000

2) Depreciate Furniture @10 % p.a

3) Full amount of Admission Fees and 50*% Donations are to be capitalized.

You are required to prepare Income and Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that date.

Practical Problems | Q 9 | Page 119

Given below is the Receipts and Payments Account of “Vithai Mahila Mandal” Pandharpur for the year ending 31.03.2018. Prepare an Income and Expenditure Account for the year ended 31.03.2018 and Balance Sheet as on that date.

Dr Receipts and Payments Account for the year ending 31.03.2018. Cr
Receipts Amount
Amount
Payments Amount
Amount
To Balance b/d     By Stationery   6000
Cash in Hand 3,000   By Repairs to Furniture   950
Cash at Bank 20,000 23,000 By Rent   8,300
To Entrance Fees   3,500 By Salaries   15,000
To Subscription   19,000 By Miscellaneous Expenses   450
To Miscellaneous Receipts   850 By Balance c/d    
      Cash in Hand 1,650  
      Cash at Bank 14,000 15,650
    46,350     46,350

Adjustments :

1) Capital Fund on 01.04.2017 was ₹ 90,000

2) Outstanding Subscription ₹ 4,000

3) Entrance Fees are to be capitalized

4) Rent paid includes ₹ 800 paid for April 2018

5) They have the following Assets and Liabilities 01.04.2017

Furniture ₹ 9,000,

Building ₹ 70,000, 

Outstanding Expenses ₹ 12,000

Practical Problems | Q 10 | Page 120

From the following Receipts and Payments Account “K.B.P. Engineering College” Nashik for the year ending on 31.03.2019 and additional information, prepare Income and Expenditure Account for the year ending 31.03.2019 and Balance Sheet as on that date.

Dr Receipts and payments Account for the year ending 31.03.2019. Cr
Receipts Amount ₹ Payments Amount ₹
To Balance b/d   By Salaries to Teaching Staff 11,70,000
Cash in Hand 18,000 By Electricity Charges 55,000
Cash at Bank 1,00,400 By Books 61,000
To Interest 55,000 By Furniture 51,000
To Subscriptions 28,300 By Stationery 21,850
To Life Membership fees 25,000 By Fixed Deposit (31.03.2019) 8,50,000
To Donation 7,00,000 By Balance c/d  
To Tuition Fees 12,30,000 Cash in Hand 16,650
To Term Fees 2,00,800 Cash at Bank 2,00,000
To Sundry Receipts 8,000    
To Admission Fees (Revenue) 60,000    
  24,25,500   24,25,500

Additional Information :

Particulars 01.04.2018 ₹ 31.03.2019 ₹
Books 6,00,000 6,00,000
Furniture 3,19,000 3,00,000
Building Fund 10,00,000 ?
Fixed Deposit 9,10,000 ?
Capital Fund 9,47,400 ?

1) 50% of Donation are for Building Fund and the balance is to be treated Revenue Income.

2) Outstanding subscription ₹ 5,300

3) Life membership fees are to capitalised

Practical Problems | Q 11 | Page 121

From the following Balance Sheet and Receipts and Payments Account of “New English School”, Barshi, Prepare Income and Expenditure Account for the year ending 31.03.2020 and a Balance Sheet as on that date.

Balance Sheet as on 01.04.2019
Liabilities Amount
₹ 
Assets Amount
₹ 
Capital Fund 6,43,000 Cash in Hand 6,000
    Cash at Bank 10,000
    Building 4,50,000
    Furniture 72,000
    Library Books 45,000
    Computer Laboratory 60,000
  6,43,000   6,43,000

 

Dr Receipts and Payments Account for the year ending 31.03.2020 Cr
Receipts Amount ₹ Amount ₹ Payments

Amount

Amount
To Balance b/d     By Salary   90,000
Cash in Hand 6,000   By Library Books   14,000
Cash at Bank 10,000 16,000 By Office Rent   10,000
To Tuition Fees   90,000 By Printing and Stationery   22,000
To Term Fees   3,000 By Sundry Expenses   12,000
To Admission Fees   12,000 By Insurance   10,200
To Donation (Capital)   61,000 By Sport Expenses   8,000
To Interest Received   2,000 By Annual Gathering Exp   9,000
To Government Grant (Revenue)   1,20,000 By Furniture   50,000
To Sundry Receipts   11,000 By Repairs   15,000
      By Balance c/d    
      Cash in Hand 4,800  
      Cash at Bank 70,000 74,800
    315000     315000

Additional Information :

1) Outstanding Salary of ₹ 9,000

2) Outstanding Tuition Fees ₹ 15,000

3) Depreciate Library Books by ₹ 9,000 and Furniture by ₹ 10,000

Practical Problems | Q 12 | Page 122

Following is the Receipts Payments Account of “Dhananjay Library, Mumbai” for the year ending 31.03.2020

Dr Receipts and Payments Account for the year ending 31.03.2020. Cr
Receipts Amount
Payments Amount
To Balance b/d 5,000 By Salaries 9,000
To Admission Fees 4,500 By Rent 7,500
To Subscriptions 20,000 By Investments 6,000
To Lecture Hall Hire Charges 4,200 By Stationery 1,350
To Miscellaneous Income 250 By Electricity Charges 850
To Interest on Investment 900 By Books 5,000
    By Outstanding Expenses (2018 - 19) 500
    By Balance c/d  4,650
  34850   34850

You are required to prepare an Income and Expenditure Account for the year ended 31.03.2020 and Balance Sheet as on that day.

The following information is also made available to you.

1) On 31.03.2019, the Library had the following Assets also; Books at ₹ 50,000, Furniture ₹ 6,500, and Machinery of ₹ 30,000

2) Subscription received in advance amounted to ₹ 500

3) Outstanding Salaries ₹ 1300 and for Rent ₹ 950

4) 50% of the Admission Fees should be capitalized.

5) Furniture to be depreciated at 10% p.a.

6) Library Books were purchased on 1st April 2019 charge Depreciation at 10% p. a.

7) The Investments were purchased on 01.04.2019 and they carry interest at 20*% p.a

Practical Problems | Q 13 | Page 123

From the following information supplied to you, prepare Income and Expenditure Account for the year ending on 31.03,2020 and Balance Sheet as on that date for “Morya Sports Club” Thane.

Balance Sheet as on 01.04.2019.
Liabilities Amount ₹ Assets Amount ₹
Capital Fund 64,500 Machinery 69,000
Bank overdraft 38,000 Outstanding Subscriptions 8,000
Outstanding Salary 4,000 Prepaid Insurance Premium 2,000
    Furniture 15,000
    Cash in Hand 12,000
    Outstanding Locker’s Rent 500
  1,06,500   1,06,500

 

Dr Receipts and Payments Account for the year ended 31.03.2020 Cr
Liabilities Amount ₹ Payments Amount
To Balance b/d 12,000 By Balance b/d (Bank Overdraft) 38,000
To Subscription 1,05,000 By Salary 17,500
To Entrance Fees (Capitalized) 9,300 By Insurance Premium 11,000
To Locker Rent 1,500 By Interest 1,400
To Donations (Capitalized) 800 By Refreshment Expenses 4,200
    By Furniture 30,000
    By Balance c/d  
    Cash in Hand 6,500
    Cash at Bank 20,000
  1,28,600   1,28,600

Adjustments :

1) Subscription received includes ₹ 3,000 for 2018 - 19 and Outstanding Subscription for 2019 - 20 was ₹ 14,000.

2) On 31.03.2020, Prepaid Insurance Premium was ₹ 2,500.

3) Depreciate Furniture by ₹ 3,000.

4) Locker Rent Outstanding for 2019 - 20 is ₹ 400

Practical Problems | Q 14 | Page 124

Following information has been provided by “Vivekanand Charitable Hospital” Latur. You are required to prepare Income and Expenditure Account for the year ending on 31.03.2019 and Balance Sheet as on that date.

Balance Sheet as on 01.04.2018.
Liabilities Amount
Assets Amount
Capital Fund 11,00,000 Building 10,50,000
Bank Loan 6,50,000 Ambulance 4,00,000
Outstanding Bill for Drugs 50,000 Stock of Drugs 42,000
    Hospital Equipments 3,04,000
    Cash in Hand 4,000
  1800000   1800000

 

Dr Receipts and Payments Account for the year ended 31.03.2019 Cr
Receipts Amount ₹ Payments Amount ₹
To Balance b/d 4,000

By Purchase of Drugs

(Includes 40,000 for 2017 - 18)

2,00,000
To Subscription 2,22,000 By Salary to Staff 85,000
To Life Membership Fees 30,000 By Honorarium to Doctors 4,00,000

To Hospital Receipts
(Revenue)

5,10,400  By Repairs and Maintenance 18,000
    By Furniture 45,000
    By General Expenses 16,000
    By Balance c/d 2,400
  7,66,400   7,66,400

Adjustments :

1) On 31.03.2019 Stock of Drugs was valued at ₹ 22,000.

2) Depreciation on Building at 5*% p.a. and on Ambulance ₹ 30,000.

3) Life Membership Fees are to be capitalized.

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Chapter 2: Accounts of ‘Not for Profit’ Concerns

Exercise 2Practical Problems
Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board - Shaalaa.com

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board chapter 2 - Accounts of ‘Not for Profit’ Concerns

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