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T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial Statements of Not-for-Profit Organisations

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T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial Statements of Not-for-Profit Organisations Page/Excercise 7.51

Solution PQ 1

 

In the books of Evergreen Club

Receipts and Payments Account

for the year ended March 31,2018 

Dr.

 

 

 

 

Cr.

Receipts

 

Rs. 

Payments

 

Rs. 

To Balance b/d

 

 

By Investments Purchased

 

5,00,000

-----Cash in Hand

50,000

 

By Rent Paid

 

50,000

---- Cash at Bank

3,40,000

3,90,000

By General Expenses

 

2,30,000

To Subscription Received

 

15,70,000

By Postage and Stationery

 

25,000

To Donation Received

 

2,80,000

By Newspapers and Magazines

 

87,000

To Sale of Old Newspapers

 

12,000

By Books Purchased

 

3,40,000

To Interest on Investments Received

 

50,000

By Sports Material Purchased

 

4,70,000

 

 

 

By Honorarium to Coacher

 

1,50,000

 

 

 

By Balance c/d

 

 

 

 

 

----Cash in Hand

30,000

 

 

 

 

----Cash at Bank (Balancing Fig.)

4,20,000

4,50,000

 

 

23,02,000

 

 

23,02,000

 

 

 

 

 

 

 

Solution PQ 2

 

Balance Sheet (Extract) 

Liabilities

 

Rs. 

Assets

 

Rs. 

Tournament Fund

50,000

 

 

 

 

Add : Tournament Receipts

20,000

 

 

 

 

Less : Tournament Expenses

(15,000)

55,000

 

 

 

 

 

 

 

 

 

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial Statements of Not-for-Profit Organisations Page/Excercise 7.52

Solution PQ 3

Case 1

Balance Sheet (Extract)

Liabilities

 

Rs. 

Assets

 

Rs. 

Prize Fund

50,000

 

 

 

 

Less : Prize Paid

(12,000)

38,000

 

 

 

 

 

 

 

 

 

 

Note: Prize Fund is maintained to meet the expenses related to the Prize. Thus, Match Expenses of Rs.15,000 are not deducted from the Prize Fund. However, it will be debited to the Income and Expenditure Account as no specific fund is maintained to meet such expenses.

Case 2

Balance Sheet (Extract)

Liabilities

 

Rs. 

Assets

 

Rs. 

Match Fund

1,00,000

 

Match fund Investments

 

60,000

Less : Match Expenses

(35,000)

 

 

 

 

Add : Interest on Investment of Match Fund

3,000

68,000

 

 

 

 

 

 

 

 

 

 

Note: Match Fund is maintained to meet the expenses related to the Match. Therefore, Prizes paid worth Rs.19,000 are not deducted from the Match fund. However, it will be debited to the Income and Expenditure Account as no specific funds maintained for distributing the prizes. Also, the interest on investment of Match Fund will be added to Match Fund because it is an income related to this particular fund. 

Solution PQ 4

 

Balance Sheet (Extract) 

Liabilities

 

Rs. 

Assets

Rs. 

Match Fund

80,000

 

Match Fund Investments

72,000

 Add : Interest on Match Fund Investment

2,880

 

Match Fund Bank Balance

3,500

Less : Match Expenses

(5,500)

77,380

 

 

 

 

 

 

 

 

Solution PQ 5

 

Balance Sheet (Extract) 

Liabilities

 

Rs. 

Assets

 

Rs. 

Match Fund

24,000

 

 

 

 

Add : Donation For Match Fund

40,000

 

 

 

 

Add : Proceed from Sale of Tickets

15,000

 

 

 

 

Less: Match Expenses (Note)

(79,000)

NIL

 

 

 

 

 

 

 

 

 

 

 

Income and Expenditure Account (Extract) 

Dr.

 

 

Cr.

Expenditure

Rs. 

Income

Rs. 

To Match Expenses (Note)

23,000

 

 

 

Note: The Total Match Fund is Rs.79,000 (i.e. Rs.24,000 + Rs.40,000 +Rs.15,000) whereas the total Match Expenses amounts to Rs.1,02,000. It means that expenses of Rs.79,000 will be met through the Fund and the remaining expenses of Rs.23,000 (i.e., Rs.1,02,000 - Rs.79,000) will be debited to the Income and Expenditure Account.

 

Solution PQ 6

Case 1

 

Balance Sheet (Extract) 

as on March 31,2018

Liabilities

Rs. 

Assets

Rs. 

Capital Fund

20,00,000

Pavilion Work - in - Progress

6,00,000

 

 

 

 

 

Case 2

 

 

Balance Sheet (Extract) 

as on March 31,2018

Liabilities

 

Rs. 

Assets

Rs. 

Pavilion Fund

10,00,000

 

Pavilion Work - in Progress

6,00,000

Less : Expenditure on Construction of Pavilion

(6,00,000)

4,00,000

 

 

Capital Fund

20,00,000

 

 

 

Add : Pavilion Work - in - Progress

6,00,000

26,00,000

 

 

 

 

 

 

 

 

Case 3

 

Balance Sheet (Extract) 

as on March 31,2018

Liabilities

 

Rs. 

Assets

Rs. 

Pavilion Fund

10,00,000

 

Pavilion Work - in Progress

6,00,000

Add: Donation

5,00,000

 

 

 

Less : Expenditure on Construction of Pavilion

(6,00,000)

9,00,000

 

 

Capital Fund

20,00,000

 

 

 

Add : Pavilion Work - in - Progress

6,00,000

26,00,000

 

 

 

 

 

 

 

 

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial Statements of Not-for-Profit Organisations Page/Excercise 7.53

Solution PQ 8

Income and Expenditure Account (Extract) 

for the year ended March 31, 2018

Dr.

 

 

 

Cr.

Expenditure

Rs. 

Income

 

Rs. 

 

 

By Subscription

4,20,000

 

 

 

 Less : Outstanding for 31st March 17

(14,000)

 

 

 

 Add : Outstanding for 31st March 18

10,000

4,16,000

 

 

 

 

 

 

Solution PQ 9

 

Income and Expenditure Account (Extract) 

for the year ended March 31, 2018

Dr.

 

 

Cr.

Expenditure

Rs. 

Income

Rs. 

 

 

By Subscription

(450 Members × Rs.200 each)

90,000

 

Solution PQ 10

 

Statement of Subscription

for the year ended March 31, 2018

Particulars

Rs. 

Subscription received during the year 2017 -18

4,09,000

Add : Outstanding for 2017 - 18 (Current year)

15,000

Less : Received for 2016 - 17 (Previous year)

(5,000)

Add : Advance received in 2016 - 17(Previous year)

18,000

Less : Advance received for 2018 - 19 (Next year)

(10,000)

Subscriptions to be credited to Income and Expenditure Account

4,27,000

 

 

 

Solution PQ 11

 

Statement of Subscription

for the year ended March 31, 2018

Particulars

 Rs. 

Subscription received during the year 2017- 18

3,00,000

Less : Subscription-in-Arrears for 2016 - 17

(50,000)

Add : Subscription-in-Arrears for 2017 -18

25,000

Add : Subscription-in-Advance for 2017 - 18

30,000

Less : Subscription-in advance for 2018 -19

(70,000)

Subscriptions to be credited to Income and Expenditure Account

2,35,000

 

 

 

 

Solution 7

 

Case 1 

 

Income and Expenditure Account (Extract) 

for the year ended March 31, 2018 

Dr. 

  

  

Cr. 

Expenditure 

Rs.  

Income 

Rs.  

 

 

By Entrance fees

1,00,000

 

Case 2  

Income and Expenditure Account (Extract)  

Dr. 

  

  

 Cr. 

Expenditure 

Rs.  

Income 

Rs.  

 

 

By Entrance fees

(1,00,000 - 25,000)

75,000

 

 

Balance Sheet (Extract)  

as on March 31, 2018 

Liabilities 

Rs.  

Assets 

Rs.  

Capital Fund

NIL

 

 

 

Entrance Fees

25,000

25,000

 

 

 

 

 

 

 

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial Statements of Not-for-Profit Organisations Page/Excercise 7.54

Solution PQ 12

Case 1

Statement of Subscription

for the year ended March 31, 2018 

Particulars

Rs. 

Subscriptions received during the year 2017 - 18

2,50,000

Add : Subscriptions -in -arrears for the year 2017 - 18

6,000

Less : Subscriptions received in advance for the year 2018 - 19

(5,000)

Subscriptions Income for the year 2017 - 18

2,51,000

 

 

 

Case 2

Statement of Subscription

for the year ended March 31, 2018

Particulars

Rs. 

Subscriptions received during the year 2017 - 18

49,000

Add : Subscriptions collected for 2017 - 18 in 2016 - 17

3,000

Add : Subscriptions unpaid for the year 2017-18

2,000

Subscriptions Income for the year 2017 - 18

54,000

 

 

 

Case 3

Statement of Subscription

for the year ended March 31, 2018 

Particulars

Rs. 

Subscriptions received during the year 2017 - 18

25,000

Less : Subscriptions outstanding in the beginning of 2017 - 18

(3,000)

Add : Subscriptions yet not collected for 2017 - 18

5,000

Subscriptions Income for the year 2017 - 18

27,000

 

 

 

Case 4

Statement of Subscription

for the year ended March 31, 2018

Particulars

Rs. 

Subscriptions received during the year 2017 - 18

80,000

Less : Subscriptions Outstanding in the beginning of 2017 - 18

(5,000)

Add : Subscriptions yet not Collected for 2017 - 18

8,000

Less : Subscriptions for 2018 - 19 received in advance

(2,000)

Subscriptions Income for the year 2017 - 18

81,000

 

 

 

Case 5

Statement of Subscription

for the year ended March 31, 2018 

Particulars

Rs. 

Subscriptions received during the year 2017 - 18

90,000

Less : Subscriptions Outstanding at the end of 2016 - 17

(5,000)

Add : Subscriptions received in advance on March 31, 2017

3,000

Less : Subscriptions received in advance on March 31, 2018

(4,000)

Add : Subscriptions not yet collected for 2017 - 18

6,000

Subscriptions Income for the year 2017 - 18

90,000

 

Solution PQ 13

Statement of Subscription

for the year ended March 31, 2018

Particulars

Rs. 

Subscriptions received during the year 2017- 18

35,400

Less : Subscriptions-in-arrears received for 2016 -17

(400)

Less : Subscriptions received-in-advance for 2018-19

(1,200)

Less : Subscriptions received-in-advance for 2018-19

(300)

Add : Subscriptions Outstanding for 2017-18

400

Add : Subscriptions received in 2016 -17 for 2017 - 18

1,100

Subscriptions to be credited to Income and Expenditure Account

 35,000

 

Solution PQ 14

 

Income and Expenditure Account

for the year ending March 31, 2018

Dr.

 

Cr.

Expenditure

Amount

(Rs.)

Income

Amount (Rs.)

 

 

Subscriptions

6,90,000

 

 

 

 

 

Balance Sheet

as on March 31, 2018

Liabilities

Amount

(Rs.)

Assets

Amount (Rs.)

Subscriptions Received in Advance

25,000

Subscriptions Outstanding

54,000

 

 

 

 

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs.)

Assets

Amount (Rs.)

Subscriptions Received in Advance

41,000

Subscriptions Outstanding

65,000

 

 

 

 

 

Working Notes:

WN1: Calculation of Subscription Income (to be shown in Income and Expenditure Account)

Particulars

Amount

(Rs.)

Subscription received during 2017-18

6,85,000

Subscription outstanding in 2017-18

54,000

Subscription outstanding in 2016-17

(65,000)

Subscription received in advance in 2017-18

(25,000)

Subscription received in advance in 2016-17

41,000

To be credited to Income and Expenditure Account 

6,90,000

 

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial Statements of Not-for-Profit Organisations Page/Excercise 7.55

Solution PQ 15

Income and Expenditure Account (Extract)

For the year ended March 31, 2018

Dr.

 

 

 

Cr.

Expenditure

Rs. 

Income

 

Rs. 

 

 

By Subscriptions

3,58,500

 

 

 

Add: Outstanding at the end

37,500

 

 

 

Add: Advance in the beginning

22,500

 

 

 

Less: Outstanding in the beginning

(30,000)

 

 

 

Less: Advance at the end

(13,500)

3,75,000

 

 

 

 

 

 

Balance Sheet (Extract)

as on March 31,2017

Liabilities

Rs. 

 

Rs. 

Subscriptions received in Advance

2,2,500

Subscriptions Outstanding

30,000

 

 

 

 

 

 

Balance Sheet (Extract)

as on March 31,2018 

Liabilities

Rs. 

Assets

Rs. 

Subscriptions received in Advance

13,500

Subscriptions Outstanding

37,500

 

 

 

 

 

Solution PQ 16

Subscriptions Account

Dr.

 

 

Cr.

Particulars

Rs. 

Particulars

Rs. 

To Income and Expenditure

(200 members × Rs.100 each)

2,00,000

By Bank (Subscriptions Received)

2,05,000

To Outstanding Subscriptions in the beginning

30,000

By Advance Subscriptions in the beginning

14,000

To Advance Subscriptions at the end

40,000

By Outstanding Subscriptions at the end

(Balancing Figure)

51,000

 

2,70,000

 

2,70,000

 

 

 

 

 

Solution PQ 17

Statement of Medicine Consumed

during the year 2017-18

Particulars

Rs. 

Medicine Purchased during the year 2017 - 18

60,80,700

Add : Stock in the beginning (as on April 01,2017)

1,75,750

Less : Stock at the end (as on March 31, 2018)

(1,44,650)

 

 

Medicine to be debited to Income and Expenditure Account

61,11,800

 

 

 

Solution PQ 18

Statement of Medicine Consumed

For the year ending March 31, 2018

Particulars

Rs. 

Cash Purchases of medicine during the year

3,00,000

Add : Opening Stock of Medicines

1,00,000

Less : Closing Stock of Medicines

(1,50,000)

Add : Closing Creditors of Medicines

1,30,000

Less : Opening Creditors of Medicines

(90,000)

Medicines Consumed during the year 2017 - 18

2,90,000

 

 

 

Solution PQ 19

a.

Statement of Stationery Consumed

at the end of 31st March 2018

Particulars

Rs. 

Amount paid for Stationery during the year ended 31st March 2018

5,400

Less : Closing Stock ( as on 31st March 2018)

(250)

Stationery to be posted to Income and Expenditure Account

5,150

 

 

b.  

 

Statement of Stationery Consumed

at the end of 31st March 2018 

Particulars

Rs. 

Payment made for Stationery during the year ended 31st March 2018

5,400

Add : Opening Stock (as on 1st April 2017)

1,500

Less : Closing Stock (as on 31st March 2018)

(250)

Stationery to be posted to Income and Expenditure Account

6,650

 

c.

Statement of Stationery Consumed

at the end of 31st March 2018 

Particulars

Rs. 

Amount paid for Stationery during the year ended 31st March 2018

5,400

Add : Opening Stock (as on 1st April 2017)

1,500

Less : Closing Stock (as on 31st March 2018)

(250)

Less: Creditors for Stationery in the beginning (as on 1st April 2017)

(1,000)

Stationery to be posted to Income and Expenditure Account

 5,650

 

 

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial Statements of Not-for-Profit Organisations Page/Excercise 7.56

Solution PQ 20

Statement of Stationery Consumed

for the year ended March 31, 2018

Particulars

Rs. 

Amount paid for Stationery during the year 2017 - 18

1,40,000

Add : Opening Stock (as on April 01, 2017)

12,000

Less : Closing Stock (as on March 31, 2018)

(23,200)

Add : Creditors at the end ( as on March 31, 2018)

24,000

Less : Creditors in the beginning (as on April 01, 2017)

(25,600)

Rs.Stationery be shown in Income and Expenditure Account

1,27,200

 

 

 

Solution PQ 21

Statement of Stationery

for the year ended March 31,2018

Particulars

 Rs. 

Amount paid for Stationery during the year 2017-18

1,08,000

Add : Opening Stock (as on April 01, 2017)

30,000

Less : Closing Stock (as on March 31, 2018)

(5,000)

Less: Creditors in the beginning (as on April 01, 2017)

(20,000)

Add: Creditors at the end (as on March 31, 2018)

13,000

Add: Advance in the beginning (as on April 01, 2017)

2,000

Less: Advance at the end (as on March 31, 2018)

(3,000)

Amount to be posted to Income and Expenditure Account

1,25,000

 

 

 

Solution PQ 22

Income and Expenditure Account

for the year ended March 31,2018 (Extract)

Dr.

 

 

 

Cr.

Expenditure

 

Rs. 

Income

Rs. 

To Sports : Material

1,40,000

 

 

 

Add : Opening Stock

8,000

 

 

 

Less: Closing Stock

(22,000)

 

 

 

Less: Creditors in the beginning

(6,000)

1,20,000

 

 

 

 

 

 

 

 

Balance Sheet

as on March 31,2018 (Extract)

Liabilities

Rs. 

Assets

Rs. 

 

 

Stock of Sport Materials

22,000

 

 

 

 

 

Solution PQ 23

Income and Expenditure Account

for the year ended March 31,2018(Extract)

Dr.

 

 

 

Cr.

Expenditure

 

Rs. 

Income

Rs. 

To Medicine

1,50,000

 

 

 

Add : Opening Stock

50,000

 

 

 

Less: Closing Stock

(75,000)

 

 

 

Less : Creditors in the beginning

(40,000)

 

 

 

Add : Creditors at the end

60,000

1,45,000

 

 

 

 

 

 

 

 

Balance Sheet

as on March 31,2017 (Extract)

Liabilities

Rs. 

Assets

Rs. 

Creditors for Medicines

40,000

Stock of Medicines

50,000

 

 

 

 

 

Balance Sheet

as on March 31,2018 (Extract)

Liabilities

Rs. 

Assets

Rs. 

Creditors for Medicines

60,000

Stock of Medicines

75,000

 

 

 

 

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial Statements of Not-for-Profit Organisations Page/Excercise 7.57

Solution PQ 24

 

Income and Expenditure Account (Extract)

for the year ended March 31, 2018 

Dr.

Cr.

Expenditure

Rs. 

Income

Rs. 

To Payment for Sports Material

71,000

 

By Profit on Sale of Sports Material

6,000

Add: Opening Stock

20,000

 

(26,000 - 20,000) 

 

Less: Closing Stock

(25,000)

 

 

 

Less: Creditors in the beginning

(7,000)

 

 

 

Add: Creditors at the end

15,000

 

 

 

Less: Book Value of Material Sold

(20,000)

54,000

 

 

 

 

 

 

 

 

 

Balance Sheet (Extract) 

as on March 31, 2017

Liabilities

Rs. 

Assets

Rs. 

Creditors for Sport Materials

7,000

Stock of Sport Materials

20,000

 

 

Balance Sheet (Extract) 

as on March 31, 2018

Liabilities

Rs. 

Assets

Rs. 

Creditors for Sport Materials

15,000

Stock of Sport Materials

25,000

 

 

Solution PQ25

Extract of Income and Expenditure Account

for the year ended March 31,2018 (Extract)

Dr.

 

 

Cr.

Expenditure

Rs. 

Income

Rs. 

To Sports Material Consumed

92,800

 

 

 

 

 

 

 

Balance Sheet

as on March 2017 (Extract)

Liabilities

Rs. 

Assets

Rs. 

Creditors of Sports Materials

9,800

Stock of Sports Materials

6,200

 

 

Advance paid for Sports Materials

11,000

 

 

 

Balance Sheet

as on March 2018 (Extract)

Liabilities

Rs.

Assets

Rs. 

Creditors of Sports Materials

7,200

Stock of Sports Materials

4,800

 

 

Advance paid for Sports Materials

19,000

 

 

Working Note:

Calculation of Sports Material Consume 

Particulars

Rs. 

Sports Material

1,02,000

Add : Opening Stock

6,200

Less : Closing Stock

(4,800)

Less: Opening Creditors

(9,800)

Add : Closing Creditors

7,200

Less : Advance at the end

(19,000)

Add : Advance in the beginning

11,000

 

92,800

 

Solution PQ 26

Furniture Account

Dr. 

Cr.

Date

Particulars

Rs. 

Date

Particulars

Rs. 

2017

 

 

 

2017

 

 

Apr 01

To Balance b/d

 

 

Sep 30

By Depreciation A/c (Furniture I)  

(6 Months)

1,500

 

(Furniture I)

30,000

 

 

 

 

 

(Furniture II)

30,000

60,000

Sep 30

By Bank A/c (Sale) (Furniture I)

20,000

 

 

 

 

Sep 30

By Income and Expenditure A/c

(Loss on Sale)

8,500

 

 

 

 

2018

 

 

 

 

 

 

Mar 31

By Depreciation A/c (Furniture I)

3,000 

 

 

 

 

Mar 31

By Balance c/d (30,000 - 3,000)

27,000

 

 

 

60,000

 

 

60,000

 

 

Income and Expenditure Account

for the year ended March 31, 2018 (Extract)

Dr.

 

 

Cr.

Expenditure

Rs. 

Income

Rs. 

To Depreciation on Furniture

(1,500 + 3,000)

4,500

 

 

To Loss on Sale of Furniture

8,500

 

 

 

Working Note :

Calculation of Profit or Loss on Sale of Furniture

Particulars

Rs. 

Book Value of Furniture Sold as on April 01, 2017

30,000

Less : Depreciation (6 Months) (30,000 × 10% × 6/12)

(1,500)

Book Value of Furniture as on Sep 30, 2017

28,500

Less : Sale Value

(20,000)

Loss on Sale of Furniture

8,500

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial Statements of Not-for-Profit Organisations Page/Excercise 7.58

Solution PQ 27

Furniture Account

Dr. 

 

Cr.

Date

Particulars

 

Rs. 

Date

Particulars

 

Rs. 

2017

 

 

 

2017

 

 

 

Apr 01

To Balance b/d

 

 

Dec 31

By Depreciation A/c

 

 

 

(Furniture I)

2,00,000

 

 

(Furniture II) (9 Months)

 

1,500

 

(Furniture II)

20,000

2,20,000

Dec 31

By Bank A/c

 

 

Oct 01

To Bank A/c

 

 

 

(Furniture II) (Sale)

 

14,800

 

(Furniture III)

 

1,50,000

Dec 31

By Income and Expenditure A/c

 

 

 

 

 

 

 

 (Loss on Sale)

 

3,700