NPO QUESTION WITH SOLUTION


Q. 1. Women’s Sports Association, Latur, prepared the following Receipt and Payment Account for the year ending 31-3-2010.
Receipt and Payments Account for the year ended 31st March 2010
Receipts
Amt.
Amt. (`.)
Payments
Amt.
Amt. (`.)
To Balance b/d
To Subscriptions:

4,200
By Sports Equipments bought on 1-10-2009

15,000
      2008 – 2009
      2009 – 2010
      2010 – 2011 

1,500
50,000
1,000
By Sundry Expenses
By Printing & Stationery

2,100
1,900
To Legacies

25,000
By Salaries

10,000
To Interest on Govt. Securities


2,500
By Electricity Charges
By Tournament Exp.

3,600
7,500
To Entrance Fees

15,000
By Purchase of Land

70,000
To Tournament Receipts

16,000
By Balance c/d

5,100


1,15,200


1,15,200
Additional Information:
(1)           The Association had the following Assets as on 1-4-2009.
                     Sports Equipments `.30,000; 5% Govt. Securities `. 50,000; Furniture `.20,000
(2)           Outstanding Subscription for the year 2009 – 2010 was `. 2,500.
(3)           Depreciate Sport Equipments @ 20% p.a. and Furniture @ 10% p.a.
(4)           Legacies are to be capitalized and half of entrance fees are to be capitalized.
With the above Receipts and Payments Account and additional information given, you are required to prepare Income & Expenditure Account for the year ended 31-3-2010 and Balance Sheet as at that date.                                                                                 (16)
In the books of Women’s Sports Association
Income & Expenditure A/c for the year ended 31.3.2010
Expenditure
Rs.
Rs.
Income
Rs.
Rs.
To Sundry Expenses
To Printing & Stationery
To Salaries
To Electricity Charges
To Tournament Exp.
To Depreciation
     Furniture
     Sports Equipments
To Surplus







2,000
7,500
2,100
1,900

10,000
3,600
7,500


9,500
43,900
By Interest on government securities
By Entrance Fees
Less: Capitalised
By Tournament Receipts
By Subscription


15,000
7,500
2,500


7,500
16,000
52,500


78,500


78,500
Balance Sheet as on 31.3.2010
Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Capital Fund
Add: Legacies

Add: Entrance Fees

Add: Surplus

Subscription in advance
105700
25,000
1,30,700
  7,500
1,38,200
 43,900





1,82,100

1,000
5% Govt. Securities
Furniture
Less: Depreciation
Sports Equipments
Add: Additions (1.10.09)

Less: Depreciation
Land
Cash
Subscription receivable

20,000
2,000
30,000
15,000
45,000
7,500
50,000

18,000



37,500
70,000
5,100
2,500


1,83,100


1,83,100
Opening Balance Sheet as on 1.4.2009
Liabilities
Rs.
Assets
Rs.
Capital Fund
1,05,700
Sports Equipments
5% Govt. Securities
Furniture
Subscription receivable
Cash
30,000
50,000
20,000
1,500
4,200

1,05,700

1,05,700

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