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NCERT solutions for Class 12 Accountancy chapter 1 - Accounting for Not-for-Profit Organisation

Ncert Class 12 Accountancy - Not-for-Profit Organisation and Partnership Accounts

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NCERT Ncert Class 12 Accountancy - Not-for-Profit Organisation and Partnership Accounts

Ncert Class 12 Accountancy - Not-for-Profit Organisation and Partnership Accounts - Shaalaa.com

Chapter 1: Accounting for Not-for-Profit Organisation

Short AnswersLong AnswersLong AnswerNumerical Questions

Chapter 1: Accounting for Not-for-Profit Organisation Exercise Short Answers solutions [Page 50]

Short Answers | Q 1 | Page 50

State the meaning of 'Not-for-Profit' Organisations.

Short Answers | Q 2 | Page 50

State the meaning of Receipt and Payment Account.

Short Answers | Q 3 | Page 50

State the meaning of Income and Expenditure Account.

Short Answers | Q 4 | Page 50

What are the features of Receipt and Payment Account?

Short Answers | Q 5 | Page 50

What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

Short Answers | Q 6 | Page 50

What is subscription? How is it calculated?

Short Answers | Q 7 | Page 50

What is Capital Fund? How is it calculated?

Chapter 1: Accounting for Not-for-Profit Organisation Exercise Long Answers, Long Answer solutions [Page 51]

Long Answers | Q 1 | Page 51

Explain the statement: “Receipt and Payment Account is a summarised version of Cash Book”.

Long Answers | Q 2 | Page 51

“Income and Expenditure Account of a Not-for-Profit Organisation is akin to Profit and Loss Account of a business concern”. Explain the statement.

Long Answers | Q 3 | Page 51

Distinguish between Receipts and Payments Account and Income and Expenditure Account.

Long Answers | Q 4 | Page 51

Explain the basic features of Income and Expenditure Account and of Receipt and Payment Account.

Long Answer | Q 5 | Page 51

Show the treatment of the following items by a Not-for-Profit Organisation:

(i) Annual subscription

(ii) Specific donation

(iii) Sale of fixed assets

(iv) Sale of old periodicals

(v) Sale of sports materials

(vi) Life membership fee

Long Answers | Q 6 | Page 51

Show the treatment of items of Income and Expenditure Account when there is a specific fund for those items.

Long Answers | Q 7 | Page 51

What is Receipt and Payment Account? How is it different from Income and Expenditure Account?

Chapter 1: Accounting for Not-for-Profit Organisation Exercise Numerical Questions solutions [Pages 51 - 62]

Numerical Questions | Q 1 | Page 51

From the following particulars taken from the Cash Book of a health club, prepare a Receipts and Payments Account.

Particulars Rs
Opening balance:  
Cash in Hand 5000
Cash at Bank 25000
Subscriptions 165000
Donations 35000
Investment Purchased 80000
Rent Paid 20000
General Expenses 21500
Postage and stationery 2000
Courier charges 1000
Sundry Expenses 2500
Closing Cash in Hand 12000
Numerical Questions | Q 2 | Page 52

The Receipt and Payment Account of Harimohan charitable institution is given:

Receipt and Payment Account for the year ending March 31, 2015

Receipts Amount (Rs)  Payments Amount (Rs)
Balance b/d:   Furniture 3000
Cash at Bank 22000 Investments 55000
Cash in Hand 8800 Advance for building 20,000
Donations 32000 Charities 60000
Subscriptions 50200 Salaries 10400
Endowment Fund 60000 Rent and Taxes 4000
Legacies 24000 Printing 1000
Interest on Investment 3800 Postage 300
Interest on Deposits 800 Advertisements 1,100
Sale of old newspapers 500 Insurance 4,800
    Balance c/d:  
    Cash at Bank 32000
    Cash in Hand 10500
  202100   202100

Prepare the Income and Expenditure Account for the Year ended on March 31, 2015 after considering the following: 

1. It was decided to treat Fifty per cent of the amount received on account of Legacies and Donations as income.
2. Liabilities to be provided for are: 
Rent Rs 800; Salaries Rs 1,200; advertisement Rs 200.

3. Rs 2,000 due for interest on investment was not actually received.

Numerical Questions | Q 3 | Page 52

From the following particulars, prepare Income and Expenditure account:

Details Amount (RS)
Fees collected, including Rs 80,000 on account of the previous year 520000
Fees for the year outstanding 30000
Salary paid, including Rs 5,000 on account of the previous year 68000
Salary outstanding at the end of the year 3000
Entertainment expenses 8000
Tournament expenses 25000
Meeting Expenses 18000
Traveling Expenses 7000
Purchase of Books and Periodicals, including Rs 31,000 for purchase of Books 40000
Rent 15000
Postage, telegrams and telephones 6000
Printing and Stationery 18000
Donations received 25000
Numerical Questions | Q 4 | Page 53

Following is the information given in respect of certain items of a Sports Club. Show these items in the Income and Expenditure Account and the Balance Sheet of the Club:

Particulars Rs
Sports Fund as on 1.4.2015 35000
Sports Fund Investments 35000
Interest on Sports Fund 4000
Donations for Sports Fund 15000
Sports Prizes awarded 10000
Expenses on Sports Events 4000
General Fund 80000
General Fund Investments 80000
Interest on General Fund Investments 8000
Numerical Questions | Q 5 | Page 53

How will you deal with the following items while preparing for the Bombay Women Cricket Club its income and expenditure account for the year ending 31.3.2017 and its Balance Sheet as on 31.3.2017:

  Rs
a)  Donation received during the year for the construction of a permanent
Expenditure incurred up to 31.3.2017 on its construction
The total estimated expenditure on construction of Pavilion being

1225000

1080000

2500000

b)  Tournament Fund:
Balance as on 1.4.2016
Subscriptions for tournament received during the year
Expenditure incurred during the year on conducting tournaments

10700

65800

72400

c)  Life Membership fee received during the year 28000

Give reasons for your answers

Numerical Questions | Q 6 | Page 53

From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2017.

Receipt and Payment Account for the year ending 

as on December 31, 2017 

Receipts Amount (Rs) Payments Amount (Rs)
Balance b/d   General Expenses 3,200
Cash in hand 4000 News paper 1850
Cash at Bank 15550 Electricity 3000
Subscriptions   Fixed deposit with bank
(on 31.06.2017) @ 10% p.a.
18000
2016 1200 28200 Books 7000
2017 26500 Salary 3600
2018 500 Rent 6500
Sale of old newspapers 1250 Postage charges 300
Govt. grant 12000 Furniture (purchased) 10500
Sale of old furniture (book value Rs 5, 000) 3700 Balance c/d  
Interest received on FD 450 Cash in Hand 3000
    Cash at Bank 8200
  65150   65150

Information:

(i)    Subscription outstanding as on 31.12.2016 Rs 2,000 and on December 31, 2017 Rs 1,500.

(ii)   On December 31, 2017 Salary outstanding Rs 600, and one month Rent paid in advance.

(iii)  On Jan. 01, 2016 organisation owned Furniture Rs 12,000, Books Rs 5,000.

Numerical Questions | Q 7 | Page 54

The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017:

Receipts Amount (Rs) Payments Amount (Rs)
Balance from last year 2270 Rent  6600
Subscriptions 32500 Electric charges 3,200
Life membership fee 3250 Lecturer’s fee 730
Donation 2500 Office expenses 1,480
Profit from entertainment 7250 Printing and Stationery 1,050
Sale of old Books (books value Rs 1,000) 750 Legal fee 1,870
Interest 350 Books 6,500
   

Furniture purchased

8,600
    Expenses on nukar drama 1,300
    Cash in hand 8040
    Cash at bank 9500
  48870   48870

You are required to prepare an Income and Expenditure Account after the following adjustments:

(a) Subscription still to be received are Rs 750, but subscription include Rs 500 for the year 2018.

(b)  In the beginning of the year the Sangh owned building Rs 20,000 and furniture Rs 3,000 and Books Rs 2,000.

(c) Provide depreciation on furniture @ 5% (including purchase), books @ 10% and building @ 5%.

Numerical Questions | Q 8 | Page 55

Following is the Receipt and Payment Account of Indian Sports Club, prepared Income and Expenditure Account, Balance Sheet as on December 31, 2017:

Receipt and Payment Account  
for the year ending December 31, 2017

Receipts Amount (Rs) Payments Amount (Rs)
Balance b/d 7,890 Salary 11,000
Subscriptions 52,000 Electric charges 5,500
Life member ship fee 2,200 Billiard Table 17,500
Entrance fee

3,200

Office expenses 4,100
Tournament fund 26,000 Printing and Stationery 2,300
Locker Rent  1,250 Tournament expenses 18,500
Sale of old sports goods (Costing Rs 2,200) 2,500 Repair of ground  2,000
Sale of Old Newspaper

750

Furniture purchased 7,700
Legacy

37,500

Sports equipments 12,000
    Cash in Hand 12,690
    Cash at Bank 10,000
    Fixed Deposit (on 1.10.17 for 10% p.a) 30,000
  133290   133290

Other Information: 

Subscription outstanding was on December 31, 2016 Rs 1,200 and Rs 3,200 on December 31, 2017. Locker rent outstanding on December 31, 2017 Rs 250. Salary outstanding on December 31, 2017 Rs 1,000.
On January 1, 2017, club has Building Rs 36,000, furniture Rs 12,000, Sports equipments Rs 17,500. Depreciation charged on these items @ 10% (including Purchase).

Numerical Questions | Q 9 | Page 55

From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account and Balance Sheet for the year ending March 31, 2017.   

Receipt and Payment Account 
for the year ending March 31, 2017 

Dr.                                                                                  Cr.

Receipts Amount (Rs) Payments Amount (Rs)
Cash in hand as on 1.4.16 6,800 Salaries 24,000
Subscription 60,200 Traveling Expenses 6,000
Donation 3,000 Stationery 2,300
Sale of furniture (Book value Rs 6000)

4,000

Rent 16,000
Entrance fee 800 Repair 700
Life membership fee 7,000 Books purchased 6,000
Interest on investment (@ 5% for full year)

5,000

Building purchased 30,000
    Cash in hand as 31.3.2017 1,800
  86800   86800

Additional Information: 

 

As on 
1.04.2016

As on 
31.03.2017 

i) Subscription received in advance 1,000 3,200
ii) Outstanding subscription

2,000

3,700
iii) Stock of stationery  1,200  800
iv) Books 13,500 16,500
v) Furniture

16,000

8,000
vi) Outstanding rent 1,000 2,000
Numerical Questions | Q 10 | Page 56

Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017

Receipt and Payment Account  
for the year ending March 31, 2017 

Receipts Amount (Rs) Payments Amount (Rs)
Opening Cash in hand 2,600 Rent 18,000
Entrance fees

3,200

Wages 7,000
Donation for building 23,000 Billiard table  14,000
Locker rent

 1,200

Furniture 10,000
Life membership fee

7,000

Interest 2,000
Profit from entertainment

3,000

Postage 1,000
Subscription 40,000 Salary 24,000
    Cash in hand 4,000
  80,000   80,000

Prepare Income and Expenditure Account and Balance Sheet with help of following Information:

Subscription outstanding on March 31, 2016 is Rs 1, 200 and Rs 2,300 on March 31, 2017, opening stock of postage stamps is Rs 300 and closing stock is Rs 200, Rent Rs 1,500 related to 2015 and Rs 1,500 is still unpaid.

On April 01, 2016 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500

On March 31, 2017. The club took a loan of Rs 20,000 (@ 10% p.a.) in 2017.

Numerical Questions | Q 11 | Page 57

Prepare Income and Expenditure Account and Balance Sheet for the year ended December 31, 2016 from the following Receipt and Payment Account and Balance Sheet of culture club:

Receipt and Payment Account 
for the year ending March 31, 2016

Receipts Amount (Rs) Payments Amount (Rs)
Opening cash balance 12000 Furniture 4,000
Subscription   Telephone expenses 800
2014-2015 2,000 24,000 Salary  
2015-2016

22,000

2014-2015 1000
Entrance fees 2,800 2015-2016 4000
Locker rent 1000 Newspapers 700
Life membership fee 1200 Sundry expenses  1,000
Government grant 11,000 Defence bonds 18,000
    Land 20,000
    Closing cash balance 2,500
  52000   52,000

Balance Sheet 
for the year ending March 31, 2015

Liabilities Amount (Rs) Assets Amount (Rs)
Advance locker rent

200

Cash in hand 12,000
Subscription Received in

1,000

Outstanding Expenses 3,000
Advance Outstanding salary 2,000 Building 35,000
Loan 10,000    
Capital fund

 36,800

 
  50000   50000
Numerical Questions | Q 12 | Page 58

From the following Receipt and Payment Account prepare final accounts of a Unity Club for the year ended March 31, 2017.

Receipt and Payment Accounts 
for the year ending March 31, 2017

Receipts Amount (Rs) Payments Amount (Rs)
Balance b/d

15,000

Furniture 18,000
Sale of Old furniture (costing Rs 6,000) 4,000 Library books 10,000
Subscriptions:   Salaries  72,000
2015–16 18,000 90,000 General expenses 18,000
2016–17

60,000

Electric charges 12,000
2017–18 12,000 Newspapers 33,800
Sale of old newspapers 10800 Postage  3,000
Profit from entertainment

44,000

Stationery  40,000
Rent 84000 Audit fee 8,000
    Balance c/d 33,000
  247800   2,47,800

Balance Sheet 
as on March 31, 2016 

Liabilities Amount (Rs) Assets Amount (Rs)
Outstanding Salary

6,000

Cash 15,000
Capital Fund 6,94,000 Outstanding subscription 18,000
    Library Books 30,000
  Furniture 37,000
  Land and Building 6,00,000
  7,00,000   7,00,000

Additional Information: 

1. The club has 500 members each paying an annual subscription of Rs 150.

2. On 31.3.2016 salaries outstanding amounted to Rs 1200 and salaries paid included Rs. 6000 for the year 2015 - 16

3. Provide 5% depreciation on land and building.

Numerical Questions | Q 13 | Page 58

Following is the information in respect of certain items of a Sports Club. You are required to show them in the Income and Expenditure Account and the Balance Sheet.

Details Amount (Rs)
Sports Fund as on April 1, 2016 80000
Sports Fund Investments 80000
Interest on Sports Fund Investments 8000
Donations for Sports Fund 30000
Sports Prizes awarded 16000
Expenses on Sports Events 7000
General Fund 200000
General Fund Investments 200000
Interest on General Fund Investments 20000
Numerical Questions | Q 14 | Page 56

Receipt and Payment Account of Maitrey Sports Club showed that Rs 68,500 were received by way of subscriptions for the year ended on March 31, 2017.

The additional information was as under:

1. Subscription Outstanding as on March 31, 2016 were Rs 6,500,

2. Subscription received in advance as on March 31, 2016 were Rs 4,100,

3. Subscription Outstanding as on March 31, 2017 were Rs 5,400,

4. Subscription received in advance as on March 31, 2017 were Rs 2,500.

Show how that above information would appear in the final accounts for the year ended on March 31, 2017 of Maitrey Sports Club.

Numerical Questions | Q 15 | Page 59

Following is the Receipt and Payment account of Rohatgi Trust :

Receipt and Payment Account 
for the year ending December 31, 2017

Receipts Amount (Rs) Payments Amount (Rs)
Cash in hand 14000 Rent 6,000
Cash at Bank 60000 Salary 12,000
Subscriptions:   Postage 300
2016 5000 91000 Electricity charges 6,000
2017 83000 Purchase of furniture 20000
2018 3000 Books 3,000
Sale of Investment 90,000 Defence Bonds 1,50,000
Interest on Investment 2000 Help to needy students 22,000
Sale of furniture (book value Rs 3,000) 3200 Cash in hand 10,900
    Cash at bank 30,000
  260200   260200

Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments: Subscription for 2017, still owing were Rs 7,000. Interest due on defence bonds was Rs7,000, Rent still owing was Rs 1,000. The Book value of investment sold was Rs 80,000, Rs 30,000 of the investment were still in hand. Subscription received in 2017 included Rs 400 from a life member. The total furniture on January 1, 2017 was worth Rs 12,000. Salary paid for the year 2018 is Rs 2,000.

Numerical Questions | Q 16 | Page 60

Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017

Receipt and Payment Account 
for the year ending December 31, 2017 

Receipts

Amount (Rs)

Payments Amount (Rs)
Balance b/d   Charity 11500
Cash in hand 11500 Rent and taxes 3200
Cash at bank 12600 Salary 6000
Donation 9000 Printing 600
Subscription 42,800 Postage 300
Legacies 18,000 Advertisements 4500
Interest on investment 4,500 Insurances 2000
Sale of old newspapers 200 Furniture 21600
    Investment 23000
    Balance c/d:  
    Cash in hand 9900
    Cash at bank 16000
  98,600   98,600

Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments:

1. It was decided to treat one-third of the amount received on account of donation as income.

2. Insurance premium was paid in advance for three months.

3. Interest on investment Rs1,100 accrued was not received.

4. Rent Rs600: salary Rs900 and advertisement expenses Rs1,000 outstanding as on December 31, 2017.

Numerical Questions | Q 17 | Page 60

From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended March 31, 2017 and the Balance Sheet as on that date.

Receipt and Payment Account
for the year ending March 31, 2017

Receipts Amount (Rs) Payments Amopunt (Rs)
Balance b/d 3500 General expenses 900
Subscription:   Salary 16000
2015 - 16 2000 75000 Postage 1300
2016 - 17 70000 Electricity charges 7800
2017 - 18 3000 Furniture 26500
Sale of old Books
(Costing Rs 3,200)
2000 Books 13000
Rent from use of hall 17000 Newspapers 600
Sale of newspapers 400 Meeting expenses 7200
Profit from entertainment 7300 T.V. set 16000
    Balance c/d 15,900
  105200   105200

Additional Information :

1. The club has 100 members each paying an annual subscription of Rs 900. Subscriptions outstanding on March 31, 2016 were Rs 3,600.

2. On March 31, 2017, salary outstanding amounted to Rs 1,000, Salary paid included Rs 1,000 for the year 2012.

3. On April 1, 2017 the club owned land and building Rs 25,000, furniture Rs 2,600 and books Rs 6,200.

Numerical Questions | Q 18 | Page 61

Following is the Receipt and Payment Account of Women’s Welfare Club for the year ended December 31, 2017:

Receipt and Payment Account 
for the year ending December 31, 2017 

Receipts Amount (Rs) Payments Amount (Rs)
Balance b/d 7250 Salary 12500
Subscriptions 81750 Stationery 1700
Donations 3000 Electricity charges 9550
Grant from Government 15000 Insurance 7500
Sale of newspapers 300 Equipments 30000
Proceeds of charity show 16500 Petty expenses 500
Interest on investments @10% for full year  7000 Expenses on charity show 12900
Sundries income 400 Newspapers 1000
    Lectures fee 16500
 

Honorarium to Secretary

12000
 

Balance c/d

27050
  131200   131200

Additional Information: 

  01.01.2017
(Rs)
31.12.2017
(Rs)
Outstanding salaries 1200 1800
Insurance prepaid 700 300
Subscription outstanding 3750 2500
Subscription received in advanced 1750 1000
Electricity charges outstanding - 1250
Stock of stationery 2250 700
Equipments 25600 50200
Building 120000 114000

Prepare Income and Expenditure Account for the year ended December 31, 2017 and Balance Sheet as on that date.

Numerical Questions | Q 19 | Page 62

As at March 31, 2017 the following balances have been extracted from the books of the Indian Chartered Accountants Recreation Club and you are asked to prepare (1) Trading Account for ascertaining gross profit derived from running restaurant and dining room and (2) Income and Expenditure Account for the year ended March 31, 2017 (3) and a Balance Sheet as at that date.

Debit Balances Rs

Credit Balances

Rs
Stock-in-hand 1170 Receipts Dining Room 87660
Purchases 24660 Subscriptions 9450
Dining Room 32370 Billiard's Receipts 7300
Rent 10470 Sunday Receipts 410
Wages 18690 Interest on Fixed Deposit 270
Repairs and Renewals 5400 Sundry Creditors 5310
Fuel and Light 5280 Grant from Institute (permanent) 42000
Misc. Expenses 4050 Income and Exp. A/c (1.4.16) 1380
Cash in hand 560 Suspense A/c (See note) 60
Cash at bank 2760    
Fixed Deposit 8500  
Sundry Debtors 2250  
China glass, cutlery and linen 600  
Billiard Table 2070  
Fixtures and Fittings 870  
Furniture 4140  
Club Premises 30000  
  1,53,840   1,53,840

On March 31, 2016 stock of restaurant consisted of Rs 900 and Rs 60 respectively. Provide depreciations Rs 60 on fixtures and fittings, Rs 390 on billiard table and Rs 560 on furniture.

Chapter 1: Accounting for Not-for-Profit Organisation

Short AnswersLong AnswersLong AnswerNumerical Questions

NCERT Ncert Class 12 Accountancy - Not-for-Profit Organisation and Partnership Accounts

Ncert Class 12 Accountancy - Not-for-Profit Organisation and Partnership Accounts - Shaalaa.com

NCERT solutions for Class 12 Accountancy chapter 1 - Accounting for Not-for-Profit Organisation

NCERT solutions for Class 12 Accountancy chapter 1 (Accounting for Not-for-Profit Organisation) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the CBSE Ncert Class 12 Accountancy - Not-for-Profit Organisation and Partnership Accounts solutions in a manner that help students grasp basic concepts better and faster.

Further, we at Shaalaa.com provide such solutions so that students can prepare for written exams. NCERT textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students.

Concepts covered in Class 12 Accountancy chapter 1 Accounting for Not-for-Profit Organisation are Income and Expenditure Account Based on Trial Balance, Some Peculiar Items, Preparation of Balance Sheet, Feature of Income and Expenditure Account, Preparation of Income and Expenditure Account, Difference Between Income and Expenditure Account and Profit and Loss Account., Feature of Receipts and Payments Account, Preparation of Receipts and Payments Account, Meaning of Receipts and Payments Account, Accounting Records of "Not for Profit" Organisations, Features of "Not for Profit" Concerns., Accounts of “Not for Profit” Concerns Examples and Solutions.

Using NCERT Class 12 solutions Accounting for Not-for-Profit Organisation exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in NCERT Solutions are important questions that can be asked in the final exam. Maximum students of CBSE Class 12 prefer NCERT Textbook Solutions to score more in exam.

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