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T.S. Grewal solutions for Class 12 Accountancy chapter 1 - Financial Statements of Not for Profit Organisations

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T.S. Grewal T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1

T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1 - Shaalaa.com

Chapter 1: Financial Statements of Not for Profit Organisations

Exercise

Chapter 1: Financial Statements of Not for Profit Organisations Exercise Exercise solutions [Pages 55 - 63]

Exercise | Q 1 | Page 55

From the information given below, prepare Receipts and Payments Account of Railway Club for the year ended 31st march, 2019:

 

(₹)

 

(₹)

Cash in Hand on 1st April, 2018 4,390 Salaries 21,500
Subscription 37,600 Honorarium to Secretary 2,500
Donations 8,000 Interest Received on Investments 2,950
Entrance Fees 4,300 Printing and Stationery 350
Rent Received for Club Halls 5,250 Petty Cash Expenses 900
Electricity Charges 3,440 Insurance Premium Paid 310
Taxes paid 490    
Exercise | Q 2 | Page 55

Bengal Cricket Club was inaugurated on 1st April, 2018. It had the following Receipts and Payments during the year ended 31st March, 2019:
Receipts: Entrance Fees ₹ 10,000; Subscriptions ₹ 60,000; Donations ₹ 10,000.
Payments: Rent ₹ 15,000; Postages ₹ 1,000; Newspapers and Magazines ₹ 8,000; Investments ₹ 30,000; Stationery ₹ 4,000; Entertainment Expenses ₹ 3,000; Miscellaneous Expenses ₹ 2,000.
Show the Receipts and Payments Account for the year ended 31st March, 2019.

Exercise | Q 3 | Page 56

The following information were obtained from the books of Delhi Club as on 31st March, 2019 at the end of the first year of the Club, prepare Receipts and Payment Account for the year ending 31st March, 2019:

Receipts

(₹)

Payments

(₹)

Donation for Building and Library Room 2,00,000 Purchase of Land 10,000
Entrance Fees 17,000 Purchase of Furniture 1,30,000
Subscription 19,000 Salaries 4,800
Lockers Rent 1,660 Maintenance of Play Grounds 1,000
Refreshment Receipts 16,000 Rent 8,000
Government Grant 25,000 Refreshment Payments 8,000
    Library Books 25,000
    Purchase of 90% Government Bonds 1,60,000
    Term Deposit with Bank 15,000
Exercise | Q 4 | Page 56

From the following information, prepare Receipts and Payments Account of Long-town Sports Club for the year ending 31st March, 2019:

Particulars

(₹)

Particulars

(₹)

Opening Balance:   Charity Given 10,000
Cash in Hand 50,000 Match Expenses 30,000
Cash at bank 60,000 Salaries 63,600
Subscription Received:   Honorarium 4,000
2017-18 4,000 12% Investment Purchased 60,000
2018-19 1,40,000 Entrance Fees 4,000
2019-20 8,000 Interest on 12% Investments 6,000
Furniture Purchased 70,000 Closing Balance:  
General Donations 20,000 Cash in Hand 24,000
Donations for Tournament 40,000 Cash at Bank ?
Exercise | Q 5 | Page 56

From the following particulars of Evergreen club, prepare Receipts and payments Account for the year ended 31st March,2019: 

 

(₹)

 

(₹)

Cash in Hand on 1st April,2018 50,000 Newspaper and Magazines 87,000
Cash at Bank on 1st April,2018 3,40,000 Sale of Old Newspaper 12,000
Subscriptions Received 15,70,000 Books Purchased 3,40,000
Donations Received 2,80,000 Sports Materials Purchased 4,70,000
Investments purchased  5,00,000 Interest on Investments Received 50,000
Rent paid 50,000 Honorarium to coaches  1,50,000
General Expenses 2,30,000 Cash in Hand on 31st March,2019 30,000
Postage and stationery 25,000  Cash at Bank on 31st March ,2019 ​?
Exercise | Q 6 | Page 56

How are the following items shown in the accounts of a Not-for-Profit Organisation ?

  Rs.
Tournament Fund 50,000
Tournament Expenses 15,000
Receipts from Tournament 20,000
Exercise | Q 7 | Page 57

How are the following dealt with in the accounts of a Not-for-Profit Organisation ?

Case I 
Dr. (₹)
   Cr.(₹)
Case II
 Dr. (₹)  Cr. (₹)
Prize Fund
Prizes Paid
Match Expenses
 
 12,000
 15,000
  50,000 Match Fund
Match Expenses
Investments of Match Fund
Interest  on Match Fund
Investments
Prizes Paid

 35,000
 60,000




​ 19,000
 1,00,000





  3,000 
Exercise | Q 8 | Page 57

How are the following dealt with while preparing the final accounts of a club?      

TRIAL BALANCE as
at 31st March, 2019
Particulars
Dr.(₹)
    Cr. (₹)
Match Fund ........ 80,000
Match Fund Investments 72,000 .........
Match Fund Bank Balance 35,000 .......
Interest on Match Fund Investments ......... 2880
Match Expenses 5,500 .........
Exercise | Q 9 | Page 57

From the following information of a club show the amounts of match expenses and match fund in the appropriate Financial Statements of the club for the year ended on 31st March, 2019:

Particulars
Match expenses paid during the year ended 31st March, 2019 1,02,000
Match Fund as on 31st March, 2019 24,000
Donation for Match Fund (Received during the year ended 31st March, 2019) 40,000
Proceeds from the sale of match tickets (Received during the year ended 31st March, 2019) 15,000
Exercise | Q 10 | Page 57

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.

Exercise | Q 11 | Page 58

How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2019 in each of the following alternative cases?
Case I    During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.
Case II    During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.Out of this, ₹ 25,000 was received from individuals whose membership is not yet approved.

Exercise | Q 12 | Page 58

In the year ended 31st March, 2019, subscriptions received by the Jaipur Literary Society were ₹ 4,20,000. These subscriptions include ₹ 14,000 received for the year ended 31st March, 2018. On 31st March, 2019, subscriptions due but not received were ₹ 10,000. What amount should be credited to Income and Expenditure Account for the year ended 31st March, 2019 as subscription?

Exercise | Q 13 | Page 58

Subscriptions received during the year ended 31st March ,2019 are

 
For the year ended  31st March, 2018 1,600  
For the year ended 31st March, 2019 84,400  
For the year ended  31st March, 2020 3,200 89,200

There are 450 members, each paying an annual subscription of ₹ 200; ₹ 1,800 were in arrears for the year ended 31st March, 2018.
Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2019. 

Exercise | Q 14 | Page 58

In the year ended 31st March, 2019, subscriptions received by Kings Club, Delhi were ₹ 4,09,000 including ₹ 5,000 for the year ended 31st March, 2018 and ₹ 10,000 for the year ended 31st March, 2020. At the end of the year ended 31st March, 2019, subscriptions outstanding for the year ended 31st March, 2019 were ₹ 15,000. The subscriptions due but not received at the end of the previous year, i.e., 31st March, 2018 were ₹  8,000, while subscriptions received in advance on the same date were ₹ 18,000.
Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2019.

Exercise | Q 15 | Page 58

From the following information, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2019:

   
1st April, 2018 Subscriptions in Arrears 50,000
  Subscriptions Received in Advance 30,000
31st March, 2019 Subscriptions in Arrears 25000
  Subscriptions Received in Advance 70,000

Subscriptions received during the year ended 31st March, 2019
– ₹ 3,00,000
Subscription still in arrears for the year 2017 – 18 – ₹ 10,000.

Exercise | Q 16 | Page 59

Calculate amount of subscriptions which will be treated as income for the year ended 31st March, 2019 for each of the following cases:

   Particulars    ₹ 
  Case I.
 (i) Subscriptions collected during the year ended 31st March, 2019
 (ii) Subscriptions in arrears for the year ended 31st March, 2019
 (iii) Subscriptions received in advance for the year ended 31st March, 2020
 2,50,000 
     6,000 
     5,000 
Case II.  (i) Subscriptions collected during the year ended 31st March, 2019
 (ii) Subscriptions for the year ended 31st March, 2019 collected in the year    ended 31st March, 2018
 (iii) Subscriptions unpaid for the year ended 31st March, 2019
49,000
  3,000
  2,000
 Case III.  (i) Subscriptions received during the year ended 31st March, 2019
 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2019
 (iii) Subscriptions not yet collected for the year ended 31st March, 2019
25,000
  3,000
  5,000
 Case IV.  (i) Subscriptions received during the year ended 31st March, 2019
 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2019
 (iii) Subscriptions not yet collected for the year ended 31st March, 2019
 (iv) Subscriptions received in advance for the year ended 31st March, 2020
80,000
  5,000
  8,000
  2,000
 Case V.  (i) Subscriptions received during the year ended 31st March, 2019
 (ii) Subscriptions outstanding at the end of the year ended 31st March, 2018
 (iii) Subscriptions  received in advance on 31st March, 2018
 (iv) Subscriptions  received in advance on 31st March, 2019
 (v) Subscriptions not yet collected for the year ended 31st March, 2019
90,000
5,000
3,000
4,000
6,000
 
Exercise | Q 17 | Page 59

From the following particulars, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2019:

   
(a) Subscriptions in arrears on 31st March, 2018 500
(b) Subscriptions received in advance on 31st March, 2018 for the year ended on 31st March, 2019 1,100
(c) Total Subscriptions received during the year ended 31st March, 2019 (including ₹ 400 for the year ended 31st March, 2018, ₹ 1,200 for the year ended 31st March, 2020 and ₹ 300 for the year ended 31st March, 2021) 35,400
(d) Subscriptions outstanding for year ended 31st March, 2019 400
Exercise | Q 18 | Page 59

How are the following items of subscriptions shown in the Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheets as at 31st March, 2018 and 2019?

 
Subscriptions received during the year ended 31st March, 2019 358,500
Subscriptions outstanding on 31st March, 2018 30,000
Subscriptions received in Advance on 31st March,2018 22,500
Subscriptions received in Advance on 31st March, 2019 13,500
Subscriptions outstanding on 31st March, 2019 37,500
(including ​₹ 12,500 for the year ended 31st March, 2018)  
Exercise | Q 19 | Page 60

From the following information, calculate amount of subscriptions outstanding for the year ended 31st March, 2019:
A club has 200 members each paying an annual subscription  of ₹ 1,000. The Receipts and Payments Account for the year showed a sum of ₹ 2,05,000 received as subscriptions. The following additional information is provided :

 
Subscriptions Outstanding on 31st March, 2018 30,000
Subscriptions Received in Advance on 31st March, 2019 40,000
Subscriptions Received in Advance on 31st March, 2018 14,000
Exercise | Q 20 | Page 60

From the following information, prepare Subscription Account for the year ending 31st March, 2019:

Particulars 31st March, 2018
(₹)
 31st March, 2019
(₹)
Subscription in Arrears 20,000 18,000
 Subscription in Advance 13,000 11,000

In the year ending 31st March, 2019, subscription received were ₹ 2,10,000 (including ₹ 6,000 of arrears from previous year) and subscription arrears of previous year were written off ₹ 4,000.

Exercise | Q 21 | Page 60

On the basis of information given below, calculate the amount of medicines to be debited to the Income and Expenditure Account of Good Health Hospital for the year ended 31st March, 2019:

Particulars 1st April, 2018
(₹)
31st March, 2019
(₹)
Stock of Medicines 1,75,750 1,44,650
Creditors for Medicines 15,06,900 18,20,700

Medicines purchased during the year ended 31st March, 2019 were ​​₹ 60,80,700.

Exercise | Q 22 | Page 60

Calculate amount of medicines consumed during the year ended 31st March, 2019:

   ₹
Opening Stock of Medicines 1,00,000
Opening Creditors for Medicines 90,000
Cash purchases of Medicines during the year 3,00,000
Closing Stock of Medicines 1,50,000
Closing Creditors for Medicines 1,50,000
Exercise | Q 23 | Page 60

Calculate  amount to be posted to the Income and Expenditure Account for the year ended 31st March, 2019:

(i) Amount paid for stationery during the year ended 31st March,2019 – ₹5,400;
Stock of Stationery in Hand on 31st March, 2019 – ₹ 250
 
(ii) Stock of Stationery in Hand on 1st April, 2018 – ₹ 1,500;
Payment made for Stationery during the year ended 31st March, 2019 – ₹ 5,400;
Stock of Stationery in Hand on 31st March, 2019 – ₹ 250.
 
   
(iii) Stock of Stationery on 1st April, 2018 1500
  Creditors for Stationery on 1st April, 2018 1,000
  Amount paid for Stationery during the year 5,400
  Stock of Stationery on 31st March, 2019 250
Exercise | Q 24 | Page 61

On the basis of the following information, calculate amount that will appear against the term 'Stationery Used' in the Income and Expenditure Account for the year ended 31st March, 2019:

 
Stock of Stationery as at 1st April, 2018 12,000
Creditors for Stationery as at 1st April, 2018 25,600
Amount paid for Stationery during the year ended 31st March, 2019 140,000
Stock of Stationery as at 31st March, 2019 23,200
Creditors for Stationery as at 31st March,2019 24,000
Exercise | Q 25 | Page 61

Calculate the amount that will be posted to the income and Expenditure Account for the year ended 31st March, 2019:

    ₹
Stock of Stationery on 1st April, 2018 30,000
Creditors for Stationery on 1st April, 2018 20,000
Advances paid for Stationery carried forward from the year ended 31st March, 2018 2,000
Amount paid for Stationery during the year ended 31st March, 2019 108,000
Stock of Stationery on 31st March, 2019 5,000
Creditors for Stationery on 31st March, 2019 13,000
Advance paid for Stationery  on 31st March, 2018 3,000
Exercise | Q 26 | Page 61

Calculate the amount of sports material to be transferred to income and Expenditure Account of Raman Bhalla Sports Club, Ludhiana, for the year ended 31st March, 2018 :

  Particulars (₹)
(i) Sports material sold during the year (Book Value ₹ 50,000) 56,000
(ii) Amount paid to creditors for sports materials 91,000
(iii) Cash purchase of sports material 40,000
(iv) Sports material as on 31st March, 2017 50,000
(v) Sports material as on 31st March, 2018 55,000
(vi) Creditors for sports material as on 31st March, 2017 37,000
(vii) Creditors for sports material as on 31st March, 2018 45,000
Exercise | Q 27 | Page 61

How are the following dealt with while preparing the final accounts for the year ended 31st , 2019?

RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT)
for the year ended 31st March, 2019
Dr.       Cr.
Receipts Payments 
                                                By Payments for Sports Material 1,40,000

 

BALANCE SHEET (AN EXTRACT)
as at 1st April, 2018

Liabilities

 ₹

Assets

Creditors for Sports Materials 6,000 Sports Materials                   8,000

Additional information :
Sports Materials in Hand on 31st March, 2019 – ₹ 22,000.

Exercise | Q 28 | Page 61

​How are the following dealt with while preparing the final accounts for the year ended 31st March, 2019?

                 RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT)
for the year ended 31st March, 2019

Dr.

 

Cr.
Receipts

Payments 

 

  ​By Payments for Medicines 1,50,000

 Additional information :

   As at 1st April, 2018
(₹)
 As at 31st March, 2019
(₹)
Stock of Medicines  50,000  75,000
Creditors for Medicines  40,000  60,000
Exercise | Q 29 | Page 62

​How are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March, 2019?

RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31st March, 2019

Dr.   Cr.

Receipts

Payments 
To Sale of Sports Materials 26,000 ​By Creditors for Sports Materials 61,000
(Book value ₹ 20,000)   By Cash purchase of Sports Materials 10,000

Additional information :

  As at 31st March, 2018
(₹)
As at 31st March, 2019
(₹)
Sports Materials  20,000  25,000
Creditors for Sports Materials    7,000  15,000
Exercise | Q 30 | Page 62

From the following information of a Not-for-Profit Organisation, show the 'Sports Materials' item in the Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheets as at 31st March, 2018 and 31st March, 2019:

Particulars 31st March, 2018
31st March, 2019
​₹
Stocks of Sports Materials 6,200 4,800
Creditors for Sports Materials 9,800 7,200
Advance to Suppliers for Sports Materials 11,000 19,000

Payment to suppliers for Sports Materials during the year was ​₹ 1,02,000. There were no cash purchases made.

Exercise | Q 31 | Page 62

The book value of furniture on 1st April, 2018 is ₹ 60,000. Half of this furniture is sold for ₹ 20,000 on 30th September, 2018. Depreciation is to be charged on furniture @ 10% p.a.
Calculate loss on sale of furniture. Show how the loss on sale and depreciation on furniture will be shown in the Income and Expenditure Account for the year ended 31st March, 2019.

Exercise | Q 32 | Page 63

Delhi Youth Club has furniture at a value of ₹ 2,20,000 in its book on 31st March, 2018. It sold old furniture, having book value of ₹ 20,000 as at 1st April , 2018 at a loss of 20% on 31st December, 2018. Furniture is to be depreciated @ 10% p.a. Furniture costing ₹ 1,50,000 was also purchased on 1st October, 2018.
Prepare Furniture Account for the year ended 31st March, 2019.

Exercise | Q 33 | Page 63

In the year ended 31st March, 2019, salaries paid amounted to ₹ 2,04,000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March, 2019 from the following additional information:

 
Prepaid Salaries on 31st March, 2018 24,000
Prepaid Salaries on 31st March, 2019 12,000
Outstanding Salaries on 31st March, 2018 18,000
Outstanding Salaries on 31st March, 2019 15,000
Exercise | Q 34 | Page 63

How are the following items dealt with while preparing Income and Expenditure Account of a club for the year ended 31st March, 2019?

  1st April, 2018
(₹)
31st March, 2019 (₹)
Outstanding Locker Rent 4,600 6,300
Advance Locker Rent 3,000 4,000

Locker Rent received during the year ended 31st March, 2019 – ₹ 52,000.

Exercise | Q 35 | Page 63

Prepare Income and Expenditure Account for the year ended 31st March, 2019 from the following

RECEIPTS AND PAYMENTS ACCOUNT

for the year ended 31st March, 2019

Dr.   Cr.
Receipts Payments 
To Balance b/d (cash) 1,80,000

By Salaries

4,80,000​
To Subscriptions 9,00,000 By Rent 50,000
To Sale of Investments 2,00,000 By Stationery 20,000
To Sale of Old Furniture  (Book Value ₹ 40,000) 30,000 By Defence Bonds 3,00,000
To Donations 10,000 By Furniture 2,00,000
    By Bicycles 30,000
    By Balance c/d (Cash)                   2,40,000
 

13,20,000

  13,20,000
Exercise | Q 36 | Page 63

Prepare Income and Expenditure Account  from the following Receipts and Payments Account of Delhi Nursing Society for the year ended 31st March, 2019

RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31st March, 2019
Dr.   Cr.
Receipts Payments 
To Balanceb/d 
(Cash at Bank)
2,01,000

By Salaries of Nurses                   

65,600
  1,11,500   38,000
  27,000   20,000
  1,00,000   2,00,000
  1,56,000   84,000
  3,800   67,000
    (Cash at Bank) 1,24,700
 

5,99,300

  5,99,300

Donation of ₹ 10,000 received for Building Fund was wrongly included in the Subscriptions Account. A bill of medicines purchased during the year amounted to ​₹12,800 was outstanding. Government Grant is not for a specific purpose.

Chapter 1: Financial Statements of Not for Profit Organisations

Exercise

T.S. Grewal T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1

T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1 - Shaalaa.com

Textbook solutions for Class 12






















T.S. Grewal solutions for Class 12 Accountancy chapter 1 - Financial Statements of Not for Profit Organisations

T.S. Grewal solutions for Class 12 Accountancy chapter 1 (Financial Statements of Not for Profit Organisations) 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 T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1 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. T.S. Grewal 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 Financial Statements of Not for Profit Organisations are Accounts of “Not for Profit” Concerns Examples and Solutions, Features of "Not for Profit" Concerns., Accounting Records of "Not for Profit" Organisations, Meaning of Receipts and Payments Account, Preparation of Receipts and Payments Account, Feature of Receipts and Payments Account, Difference Between Income and Expenditure Account and Profit and Loss Account., Preparation of Income and Expenditure Account, Feature of Income and Expenditure Account, Preparation of Balance Sheet, Some Peculiar Items, Income and Expenditure Account Based on Trial Balance.

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