20202,83,500

20212,70,000
(ii) The independent valuation on the date of death revealed:
Land and Building ₹ 2,25,000
Furniture and Fixtures ₹ 22,500
(iii) For valuation of goodwill a fair remuneration for each of the partners would be ₹
56,250 per annum and that the capital employed in the business to be taken as
5,85,000 throughout.
It was agreed between the partners that:
1) Goodwill was not be shown as an asset of the firm as on 31st December, 2022.
Therefore, adjustment for goodwill was to be made in Capital Accounts.
2) The amount due to C's Estate was to remain as loan with the firm carrying interest
at 12% p.a.
3) A and B would share profits equally from the date of death of C.
4) Depreciation on revised value of assets would be ignored.
You are required to prepare:
A. Partners' Capital Account and Current Account; and
B. Balance Sheet of the firm as on 31st December, 2022.
Working should be done correct to the nearest rupee.

Financial statement of not-for-profit organization

1. The following information of M/s. TT Club are related for the year
ended 31st March, 2020:
Balances As on 01-04- As on 31-3-
2019 2020
Stock of Sports Material 75,000 1,12,500
Amount due for Sports Material 67,500 97,500
Subscription due 11,250 16,500
Subscription received in advance 9,000 5,250
Subscription received during the year ₹ 3,75,000
Payments for Sports Material during the year ₹ 2,25,000
You are required to:
▪ Calculate the amount of Subscription and Sports Material that will appear in
Income & Expenditure Account for the year ended 31.03.2020 and
▪ Also show how these items would appear in the Balance Sheet as on 31.03. 2020.

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 2. From the following receipts and payments account of Pune Club, prepare income
and expenditure account for the year ended 31.03.2021 and its balance sheet as on
that date:

Receipts ₹ Payments ₹
Cash in hand 4,000 Salary 2,000
Cash at bank 10,000 Repair expenses 500
Donations 5,000 Purchase of furniture 6,000
Subscriptions 12,000 Misc. expenses 500
Entrance fees 1,000 Purchase of investments 6,000
Interest received from 500 Insurance premium 200
bank
Sale of old newspaper 150 Snooker table 8,000
Sale of drama tickets 1,050 Stationary 150
Drama expenses 500
Cash in hand (closing)₹ 2,650
Cash at bank (closing) 7,200
33,700 33,700
The following adjustments are to be made while drawing up the accounts:
i. Subscriptions in arrear for year 2020-21 ₹900 and subscriptions in advance for
2021-22 ₹ 350.
ii. Insurance premium outstanding ₹ 40 and Misc. expenses prepaid ₹90.
iii. 50% of donation is to be capitalized.
iv. Entrance fees are to be treated as revenue income.
v. 8% interest has accrued on investment for five months.
vi. Snooker table costing ₹ 30,000 was purchased on 31st March,2020 and ₹22,000
were paid for it.
3. From the following data, prepare an Income and Expenditure Account for the year
ended 31st December 20, and Balance Sheet as at that date of the Jeevan Hospital:
Receipts and Payments Account for the year ended 31 December, 2019

105
 Receipts ₹ Payments ₹
T Balance b/d B Salaries:
o Cash 800 y (₹ 7,200 for 2018) 31,20
Bank 5,2 6,000 By Hospital Equipment 017,00
To Subscriptions: 00 By Furniture purchased 0
For 2018 5,100 By Additions to Building 6,000
For 2019 24,50 By Printing and Stationery 50,00
0 0
For 2020 By Diet expenses
2,400 2,400
To Government By Rent and rates
Grant: 15,60
(₹ 300 for 2020) 0
For building 80,00 By Electricity and water
0 2,000
For maintenance charges
To Fees from sundry 20,00 By office expenses
Patients 0 2,400
By Investments
To Donations (not 2,000
4,800 By Balances:
to be capitalized) 20,00
8,000 Cash 1,400 0
To Net collections
from benefit shows Bank 6,800

Additional information: 6,000 ₹

1,56,8
Value of building under construction as on 31.12.2019 8,200
1,40,0
00
Value of hospital equipment on 31.12.2019 00
51,00
1,56,8
Building Fund as on 1.1. 2019 080,00
00
Subscriptions in arrears as on 31.12.2018 0
6,500
Investments in 8% Govt. securities were made on 1st July, 2019.

4. The Receipts and Payments account of Peppapig Club prepared on 31st March,
2021 is as follows:
Receipts and Payments Account

106
 Receipts ₹ Amou Payments Amoun
nt t₹
T Balance b/d ₹900 B Expenses (including
o Annual Income y Payment for sports
from Subscription material ₹ 5,400)
9,18 12,600
Add: Outstanding 0 Loss on Sale of
Furniture (cost 360
T of last year B
received this year price
o y
₹ 900)
360
9,54 Balance c/d 1,80,90
0 0
Less:
B
Prepaid
last year of 180 9,360 y
T Other fees 3,600
o
T Donation for 1,80,0
o Building 00
1,93,8 1,93,86
60 0
Additional information:
Peppapig club had balances as on 1.4.2020 : -
Furniture ₹ 3,600; Investment at 5% ₹ 54,000; Sports material ₹ 13,320;
Balance as on 31.3.2021 :
Subscription Receivable ₹ 540 Subscription received in advance ₹ 180; Stock of
sports material ₹3,600.
Do you agree with above Receipts and Payments account? If not, prepare correct
Receipts and Payments account and Income and Expenditure account for the year
ended 31st March, 2021 and Balance Sheet on that date.

5. The following is the Receipt and Payment Account of Park View Club in respect
of the year ended 31st March, 2012.
Receipt Amount Payments Amount
(₹) (₹)
To Balance b/d 1,02,500 By Salaries 2,08,000
To Subscriptions By Stationery 40,000
2010-11 4,500 By Rent 60,000
2011-12 2,11,000 By Telephone expenses 10,000
2012-13 7,500 2,23,000 By Investment 1,25,000

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 To Profit on sports meet 1,55,000 By Sundry expenses 92,500
To Income 1,00,000 By Balance c/d 45,000
from
5,80,500 5,80,500
investments
Additional information:
There are 450 members each paying an annual subscription of ₹500. On 1st April, 2011
outstanding subscription was ₹5,000.
There was an outstanding telephone bill for ₹3,500 on 31st March, 2012.
Outstanding sundry expenses as on 31st March, 2011 totalled ₹7,000.
Stock of stationery:
On 31st March, 2011 ₹ 5,000
On 31st March, 2012 ₹ 9,000
On 31st March, 2011 building stood in the books at ₹ 10,00,000 and it was subject to
depreciation @ 5% per annum.
Investment on 31st March, 2011 stood at ₹20,00,000.
On 31st March, 2012, income accrued on the investments purchased during
the year amounted to ₹ 3,750.
You are required to prepare income and expenditure account and balance sheet

6. Income and Expenditure Account for the year ended 31st March, 2012 of South
Asia Club is given below:
Expenditure ₹ Income ₹
T Salaries & wages 47,500 By 75,000
o Miscellaneous 5,000 Subscription 2,500
T expenses Audit fee 2,500 By Entrance 7,500
o Executive’s honorarium 10,000 fee
T Sports day expenses 5,000 By Contribution for annual
o day(After deducting
T expenses
o ₹7,500)
T
o

T Printing & stationary 4,500

o
T Interest on bank loan 1,500
o
T Depreciation on sports 3,000
o

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 equipment
T Excess of income over
o
expenditure 6,000
85,000 85,000
Following additional information are also available
31.3.2011 31.3.2012
₹ ₹
(1) Subscription received in advance 4,500 2,700
(2) Subscription outstanding 6,000 7,500
(3) Salaries outstanding 4,000 4,500
(4) Sports equipment (After deducting depreciation)26,000 27,000

Cash in hand on 31-3-12 was ₹16,000. The club took a 5% loan of ₹ 30,000 from a bank
during 2010-11 for which interest was not paid in the financial year 2011-12.
Prepare Receipts and Payments account of South Asia Club for the year ending 31st March
2012.

7. Summary of receipts and payments of Bombay Medical Aid society for the year
ended 31.12.2011 are as follows:
Opening cash balance in hand ₹ 8,000, subscription ₹ 50,000, donation ₹ 15,000, interest on
investments @ 9% p.a. ₹ 9000, payments for medicine supply ₹ 30,000 Honorarium to
doctor 10,000, salaries ₹ 28,000, sundry expenses ₹ 1,000, equipment purchase ₹ 15,000,
charity show expenses ₹ 1,500, charity show collections ₹ 12,500.
Additional information:
1.1.2011 31.12.2011
Subscription due 1,500 2,200
Subscription received in advance 1,200 700
Stock of medicine 10,000 15,000
Amount due for medicine supply 9,000 13,000
Value of equipment 21,000 30,000
Value of building 50,000 48,000

You are required to prepare receipts and payments account and income and expenditure
account for the year ended 31.12.2011 and balance sheet as on 31.12.2011.

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8. You are provided the following information related to Krishna sports club:
31st Dec. 31st Dec. 2016
2015
Building (subject to 10% depreciation for 60,000 ?
current year)
Furniture (subject to 10% depreciation for - 20,000
current year)
Stock of Sports Materials 5,000 2,000
Prepaid Insurance 3,000 6,000
Outstanding Subscription 12,000 8,000
Advance Subscription 6,000 4,000
Outstanding Locker Rent 6,000
Advance Locker Rent received - 2,000
Outstanding Rent for Godown 6,000 3,000
12% General Fund Investments 2,00,000 2,00,000
Accrued Interest on above (for 2 months) - 4,000
Cash Balance 1,000 64,000
Bank Balance 2,000 -
Bank Overdraft 2,000
Entrance Fees received ₹ 20,000, Life Membership Fees received ₹ 20,000, surplus from
Income & expenditure Account ₹ 60,000. It is the policy of the club to treat 60% of entrance
fees and 40% of Life Membership Fees as of revenue nature. The furniture was purchased
on 1.01.2016
You are required to prepare the opening and closing balance sheets of Krishna sports club
as on 1st January, 2016 and 31st December, 2016.

9. You are provided with the following:

Balance Sheet as on 31st March, 2017
Liabilities (₹) Assets (₹)
Capital Fund 1,06,20 Building 1,50,00
Subscription receivedin 06,000 Outstanding 03,800
Advance
Outstanding Expenses 14,000 Subscription
Outstanding Locker 2,400
Loan 40,000 Rent
Cash in hand 20,000
Sundry Creditors 10,000
Total 1,76,20 1,76,20
0 0
The Receipts and Payment Account for the year ended on 31st March,
2018

Receipt Payment
To Balance b/d 20,000 By Expenses:
To Subscriptions: For 2017 12,000

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 For 2017 2000 For 2018 20,000 32,000
For 2018 21,000 By Land 40,000
For 2019 1,000 24,000 By Interest 4,000
To Entrance Fees 38,000 By Miscellaneous 4,700
Expenses
To Locker Rent 7,000 By Balance c/d 18,300
To Sale proceeds of 1,000
old newspapers
To Miscellaneous 9,000
Income
99,000 99,000
You are required to prepare Income and Expenditure account for the year ended 31st
March, 2018 and a Balance Sheet as at 31st March, 2018 (Workings should form part of
your answer).

10. From the following information supplied by M.B.S. Club, prepare Receipts and
Payments account and Income and Expenditure Account for the year ended 31st
March 2019.
01.04.2018 31.03.2019
₹ ₹
Outstanding subscription 1,40,000 2,00,000
Advance subscription 25,000 30,000
Outstanding salaries 15,000 18,000
Cash in Hand and at Bank 1,10,000 ?
10% Investment 1,40,000 70,000
Furniture 28,000 14,000
Machinery 10,000 20,000
Sports goods 15,000 25,000
Subscription for the year amount to ₹ 3,00,000/-. Salaries paid ₹ 60,000. Face value of the
Investment was ₹ 1,75,000, 50% of the Investment was sold at 80% of Face Value. Interest
on investments was received ₹ 14,000. Furniture was sold for ₹ 8000 at the beginning of
the year. Machinery and Sports Goods purchased and put to use at the last date of the year.
Charge depreciation @ 15% p.a. on Machinery and Sports goods and
@10% p.a. on Furniture.
Following Expenses were made during the year:
Sports Expenses: ₹ 50,000
Rent: ₹ 24,000 out of which ₹ 2,000 outstanding
Misc. Expenses: ₹ 5,000 May 2019

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11. From the following Income and Expenditure account and the Balance sheet of a
club, prepare its Receipts and Payments Account and subscription account for the
year ended 31st March, 2019:
Income & Expenditure Account for the year 2018-19
Particulars ₹ Particulars ₹
To Upkeep of ground 11,000 By Subscriptions 19,052
To Printing 1,100 By Sale of Newspapers (Old) 286
To Salaries 11,100 By Lectures (Fee) 1,650
To Depreciation on furniture 1,100 By Entrance Fee 2,145
To Rent 1,660 By Misc. Income 440
By Deficit 2,387
25,960 25,960
Balance sheet as at 31st March 2019
Liabilities ₹ Assets ₹
Subscription in advance 110 Furniture 9,900
(2019-20)
Prize fund: Ground and 51,700
Opening balance Add: 27,500 Building 22,000
Interest 1,100
Prize Fund
28,600
Investment 2,530
Less: Prizes given 2,200 26,400
Cash in Hand
General Fund: 770
Opening balance 62,062 Subscription

Less: Deficit 2,387 (outstanding)

59,675 (2018-2019)

Add: Entrance Fee 715 60,390

86,900 86,900
The following adjustments have been made in the above accounts:
a) Upkeep of ground ₹ 660 and printing ₹ 264 relating to 2017-18 were paid in 2018-
19.
b) One fourth of entrance fee has been capitalized by transfer to General Fund.
c) Subscription outstanding in 2017-18 was ₹ 880 and for 2018-19 ₹ 770.
d) Subscription received in advance in 2017-18 was ₹ 220 and in 2018-19 for 2019-20
was ₹ 110.
e) Furniture was purchased during the year. Nov 2019

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12. From the following balances and particulars of AS College, prepare Income &
Expenditure Account for the year ended March, 2020 and a Balance Sheet as on
the date
Particulars Amount Amount
Security Deposit - Students -(₹) 1,55,000
(₹)
Capital Fund - 13,08,000
Building Fund 19,10,000
Tuition Fee Received 8,10,000
Government Grants 5,01,000
Interest & Dividends on Investments 1,75,000
Hostel Room Rent - 1,65,000
Mess Receipts (Net) - 2,05,000
College Stores - Sales 7,60,000
Outstanding expenses - 2,35,000
Stock of Stores and Supplies (opening) - 3,10,000 -
Purchases - Stores & Supplies 8,20,000 -
Salaries - Teaching 8,75,000 -
Salaries - Research 1,25,000 -
Scholarships 85,000 -
Students Welfare expenses 37,000 -
Games & Sports expenses 52,000 -
Other investments 12,75,000 -
Land 1,50,000 -
Building 15,50,000 -
Plant and Machinery 8,50,000 -
Furniture and Fittings 5,40,000 -
Motor Vehicle 2,40,000 -
Provision for Depreciation :
Building - 4,90,000
Plant & Equipment - 5,05,000
Furniture & Fittings 3,26,000
Cash at Bank 3,16,000 -
Library 3,20,000

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 75,45,000 75,45,000

Adjustments :
(a) Materials & Supplies consumed (From college stores):
Teaching ₹ 52,000.
Research - ₹ 1,45,000
Students Welfare - ₹ 78,000
Games or Sports - ₹ 24,000
(b) Tuition fee receivable from Government for backward class Scholars ₹ 82,000.
(c) Stores selling prices are fixed to give a net profit of 15% on selling price:
Depreciation is provided on straight line basis at the following rates
Building 5%
Plant & 10%
Nov 2020
Equipment
Furniture & 10%
Fixtures
Motor Vehicle 20%

13. Dr. Deku started private practice on 1st April, 2019 with ₹ 2,00,000 of his own
fund and ₹ 3,00,000 borrowed at an interest of 12 p.a. on the security of his life
policies. His accounts for the year were kept on a cash basis and the following is
his summarized cash account:
Receipts ₹ Payments ₹
Own Capital 2,00,000 Medicines Purchased 2,45,000
Loan 3,00,000 Surgical Equipment 2,50,000
Prescription Fees 6,60,000 Motor Car 3,20,000
Visiting Fees 2,50,000 Motor Car Expenses 1,20,000
Lecture Fees 24,000 Wages and Salaries 1,05,000
Pension Received 3,00,000 Rent of Clinic 60,000
General Charges 49,000
Household 1,80,000
Expenses 25,000
Household 2,15,000
Furniture
Expenses on 36,000
1,10,000
Daughter's Marriage
19,000

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 17,34,000 Interest on 17,34,00
Loan Balance 0
at Bank
1/3rd of the motor car expenses may be treated Cash in to the private use of car
as applicable
and ₹ 30,000 of salaries are in respect of domestic
Hand servants. The stock of medicines
in hand on 31st March, 2020 was valued at ₹ 95,000.
You are required to prepare his private practice income and expenditure account and
capital account for the year ended 31st March, 2020. Ignore depreciation on fixed
assets.
Jan 2021

14. From the following Income and Expenditure Account and additional information
of A TK Club, prepare Receipts and Payments Accounts and Balance Sheet of the
club as on 31st March, 2020.
Income and Expenditure Account for the year ending 31st March, 2020
Expenditure ₹ Income ₹
To Salaries 4,80,000 By Subscription 6,80,000
To Printing and Stationery 24,000 By Entrance Fees 16,000
To Postage 2,000 By Misc. Income 1,44,000
To Telephone 6,000
To Office expenses 48,000
To Bank Interest 22,000
To Audit Fees 10,000
To Annual General Meeting Exp. 1,00,000
To Depreciation (Sports Equipment) 28,000
To Surplus 1,20,000
8,40,000 8,40,000
Additional Information:
Particulars As on 31st As on 31st
March, 2019 March, 2020
Subscription Outstanding 64,000 72,000
Subscription Received in advance 52,000 33,600
Salaries Outstanding 24,000 32,000
Audit Fees Payable 8,000 10,000
Bank Loan 1,20,000 1,20,000
Value of Sports Equipment 2,08,000 2,52,000
Value of Club Premises 7,60,000 7,60,000
Cash in Hand ? 1,14,000
Jan 2021

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15. The Income and Expenditure Account of the Women Club for the Year ended on
December 31, 2021 is as follows.
Expenditure ₹ Income ₹
To Salaries 47,500 By Subscription 75,000
To General Expenses 5,000 By Entrance Fees 2,500
To Audit Fee 2,500 By Contribution for Annual 10,000
Dinner
To Secretary’s honorarium 10,000 By Annual Sports Meet 7,500
Receipts
To Stationary and Printing 4,500
To Annual Dinner 15,000
Expenses
To Interest and bank 1,500
charges
To Depreciation 3,000
To Surplus 6,000
95,000 95,000
This account had been prepared after the following adjustments:

₹
Subscription outstanding at the end of 2020 6,000
Subscription received in advance on 31st December,2020 4,500
Subscription received in advance on 31st December, 2021 2,700
Subscription outstanding on 31st December,2021 7,500
Salaries outstanding at the beginning and end of the year 2021 were respectively ₹
4,000 and ₹ 4,500. General Expenses include insurance prepaid to the extent of ₹
600. Audit fee for the year 2021 is as yet unpaid. During the year 2021 audit fee for
the year 2020 was paid amounting to ₹ 2,000
The Club owned a freehold lease of ground valued at ₹ 1,00,000. The club had sports
equipment on 1st January, 2021 valued at ₹ 26,000. At the end of the year 2021,
after depreciation, this equipment amounted to ₹27,000. In the year 2020, the Club
had raised a bank loan of ₹20,000.This was outstanding throughout the year 2021.On
31st December, 2021 in hand was ₹ 16,000.
You are required to:
Prepare the Receipts and Payments Account for the year ended on December 31,
2021 and the Balance Sheet as on that date.

116
16. Summary of Receipts and Payments of AMA Society for the year ended 31st
March, 2021 are as follows:
Receipts Amount Payments Amount
Subscription Received 5,00,000 Payment for Medicine 3,00,000
Donation Raised for 1,50,000 Supply
Honorarium to Doctors 1,00,000
meeting revenue
expenditure
Interest on Investments 90,000 Salaries 2,80,000
@ 9% p.a.
Charity Show Collection 1,25,000 Sundry Expenses 10,000
Equipment Purchase 1,50,000
Charity Show Expenses 15,000

Additional Information:
Particulars 01.04.2020 31.03.2021

Subscription due 15,000 22,000

Subscription received in advance 12,000 7,000
Stock of medicine 1,00,000 1,50,000
Amount due for medicine supply 90,000 1,30,000
Value of equipment 2,10,000 3,00,000
Value of building 5,00,000 4'80 '000
Cash Balance 80,000 90,000
Opening Balance of Capital Fund 18,03,000
You are required to prepare:
Income and Expenditure Account for the year ended 31st March, 2021.
Balance Sheet as on 31st March, 2021

17. The following is the Receipts and Payments Account of Mumbai Club for the year
ended March 31, 2021:
Receipt and Payment Account of Mumbai Club
Receipts Amou Payments Amou
nt nt
(₹) (₹)
Cash in hand 20,000 Ground man's Fee 75,000
Balance at Bank as Purchase of Equipment’s 1,55,0
perPass Book: 00
Saving Account 1,93,0 Rent of Ground 25,000

117
 00
Current Account 60,000 Club night expenses 38,000
Bank Interest 5,000 Printing and Office Expenses 30,000
Donations and Subscriptions 2,50,0 Repairs to Equipment 50,000
00
Entrance fees 18,000 Honorarium to 40,000
Secretary(2019-20)
Contribution to Club night 10,000 Balance at Bank as per
Pass Book:
Sale of Equipment 8,000 Saving Account 2,04,0
00
Bar Room receipts 20,000 Current Account 20,000
Proceeds from club night 78,000 Cash in hand 25,000
6,62,0 6,62,0
00 00
You are given the following additional information (All figures are in ₹)

01.04.20 31.03.21
Subscription due 15,000 10,000
Amount due for printing etc. 10,000 8,000
Cheques unpresented being payment for 30,000 25,000
repairs
Interest not yet entered in the Pass book - 2,000
Estimated value of machinery and 80,000 1,75,000
equipment
For the year ended March 31, 2021, the honorarium to the Secretary is to be
increased by a total of ₹ 20,000 and Ground man is to receive a bonus of ₹ 20,000.
Prepare the Income and Expenditure Account for period ended 31st March,2021 and
the Balance Sheet as at that date

18. Following is the Receipts and Payments account of Pune Medical Aid Society for
the year ended 31-12-2022.
Receipts and Payments Account for the year ended 31-12-2022
Receipts Amount Payments Amou
₹ nt
₹
To Opening cash in hand 12,000 By Medicine supply 35,000
To Subscription 65,000 By Honorarium to 15,000
Doctors

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 To Donations 25,000 By Salaries 36,000
To Interest on Investment 10,000 By Sundry expenses. 950
(10%)
To Charity show collection 16,500 By Purchase of 25,000
Medical equipment
By Charity show 2,750
expenses
By Closing Cash in hand
13,800
1,28,500 1,28,50
0
The following is the additional information provided
01-01-2022 31-12-2022
Amount ₹ Amount ₹
Subscription due 2,500 3,100
Subscription received in advance 1,800 1,400
Stock of medicine 12,500 17,250
Amount due for medicine supply 12,000 16,500
Value of equipment 21,500 37,200
Value of building 65,000 61,750
You are required to prepare Income and Expenditure account, and Balance sheet as
on 31-12-2022.

19. The Income and Expenditure Account of the Young Boys Club for the rear 2022 is
as follows:
Expenditure Amount Income Amount
(₹) (₹)
To Salaries 3,750 By Subscription 8,500
To General Expenses 1,500 By Entrance Fees 250
To Audit fee 250 By Contribution
for
To Secretary's 1,000 Annual 1,000
Honorarium Dinner
To Stationery and 450 By Annual Sports
Printing
To Annual Dinner 1,500 meet receipts 750
expenses

119