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Q1- From the following particular relating to Shyamji Charitable society, prepare a receipts & payment account for the year ending 31st March, 2019:
| Particular | Amount(₹) |
| Cash in hand on 1st April 2018 | 16,000 |
| Cash at bank as on 1st April 2018 | 28,000 |
| Subscription (including ₹11,000 for 2017-18) | 60,000 |
| Donations for building | 2,90,000 |
| Miscellaneous expenses | 98,000 |
| Locker rent | 32,000 |
| Entrance fees | 41,000 |
Solution:-
In the books of Shyamji Charitable Society
Receipts and Payments Account
for the year ended March 31,2019
| Dr. | Cr. | ||
| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
| To Balance b/d Cash balance | 16,000 | By miscellaneous expenses | 98,000 |
| Bank balance | 28,000 | ||
| To Donations | 2,90,000 | ||
| To Entrance Fees | 41,000 | ||
| To subscription | 60,000 | ||
| To locker rent | 32,000 | By balance c/d | 3,69,000 |
| 4,67,000 | 4,67,000 |
Q.2- Bengal Cricket Club was inaugurated on 1st April, 2020. It had the following Receipts and Payments during the year ended March 31st, 2021:
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 A/count for the year ended March 31st, 2021.
Solution:-
| In the books of Bengal Cricket Club Receipts and Payments Account for the year ended March 31, 2021 |
| Dr. | Cr. | ||
| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
| To Balance b/d | – | By Rent | 15,000 |
| To Subscriptions | 60,000 | By Postages | 1,000 |
| To Donations | 10,000 | By Newspapers and Magazines | 8,000 |
| To Entrance Fees | 10,000 | By Investments | 30,000 |
| By Printing and Stationery | 4,000 | ||
| By Entertainment Expenses | 3,000 | ||
| By Miscellaneous Expenses | 2,000 | ||
| By Balance c/d | 17,000 | ||
| 80,000 | 80,000 |
Q.3- From the information given below, prepare Receipts and Payments A/count of Railway Club for the year ended March 31st, 2021:
| ₹ | ₹ | ||
| Cash in Hand on 1st April, 2020 | 4,390 | Printing and Stationery | 350 |
| Salaries | 21,500 | Rent Received for Club Halls | 5,250 |
| Subscription | 37,600 | Petty Cash Expenses | 900 |
| Honorarium to Secretary | 2,500 | Electricity Charges | 3,440 |
| Donations | 8,000 | Insurance Premium Paid | 310 |
| Interest Received on Investments | 2,950 | Taxes paid | 490 |
| Entrance Fees | 4,300 |
solution:-
In the books of Railway Club
Receipts and Payments Account
for the year ended March 31,2021
| Dr. | Cr. | ||
| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
| To Balance b/d | 4,390 | By Electricity Charges | 3,440 |
| To Subscription | 37,600 | ||
| To Donations | 8,000 | By Salaries | 21,500 |
| To Entrance Fees | 4,300 | By Honorarium to Secretary | 2,500 |
| To Rent Received | 5,250 | By Printing and Stationery | 350 |
| To Interest on Investments | 2,950 | By Petty Cash Expenses | 900 |
| By Insurance Premium Paid | 310 | ||
| By Balance c/d | 33,000 | ||
| 62,490 | 62,490 |
Q.4- following information were obtained from the books of Delhi Club as on 31st March, 2021 at the end of the first year of the Club, prepare Receipts and Payment Account for the year ending 31st March, 2021:
| Receipts | (₹) | Payments | (₹) |
| Donation for Building and Library | 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 | ||
Note : club enjoys bank overdraft facility.
Solution:-
Receipts and Payments A/c of delhi Club
for the year ended 31st March, 2021
| Receipts | Amount (₹) | Payments | Amount (₹) |
| To Donation for Building and Library Room | 2,00,000 | By Purchase of Land | 10,000 |
| To Entrance Fees | 17,000 | By Purchase of Furniture | 1,30,000 |
| To Subscription | 19,000 | By Salaries | 4,800 |
| To Lockers Rent | 1,660 | By Maintenance of Play Grounds | 1,000 |
| To Refreshment Receipts | 16,000 | By Rent | 8,000 |
| To Government Grant | 25,000 | By Refreshment Payments | 8,000 |
| To balance c/d | 83,140 | By Library Books | 25,000 |
| By Purchase of 9% Government Bonds | 1,60,000 | ||
| By Term Deposit with Bank | 15,000 | ||
| 3,61,800 | 3,61,800 | ||
Q.5- From the following information, prepare Receipts and Payments Account of the north Sports Club for the year ending 31st March, 2021:
| 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 Sports equipment purchased | 6,000 50,000 |
| Furniture Purchased | 70,000 | Closing Balance: | |
| General Donations | 20,000 | Cash in Hand | 24,000 |
| Donations for Tournament Donation for pavilion | 40,000 50,000 | Cash at Bank | ? |
solution:-
Working Notes:
Calculation of closing balance of Cash:
Total Receipts = ₹ 3,82,000
Total Payments = ₹ 2,87,600
Cash in Hand = ₹ 24,000
| Cash at Bank | = | Total Receipts – (Total Payments + Closing Balance of Cash) |
| = | ₹ [3,82,000 – 3,11,600] = ₹ 70,400 |
In the books of the north Sports Club
Receipts and Payments Account
for the year ended March 31, 2021
| Receipts | Amount (Rs.) | Payment | Amount (Rs.) |
| To Balance b/d | By Furniture Purchased | 70,000 | |
| Cash in Hand | 50,000 | By Charity Given | 10,000 |
| Cash at Bank | 60,000 | By Match Expenses | 30,000 |
| To Subscription: | By Salaries | 63,600 | |
| 2017-18 | 4,000 | By Honorarium | 4,000 |
| 2018-19 | 1,40,000 | By 12% Investment Purchased By sports equipment purchased | 60,000 50,000 |
| 2019-20 | 8,000 | By Balance c/d | |
| To Entrance Fees | 4,000 | Cash in Hand | 24,000 |
| To General Donations | 20,000 | Cash at Bank (Balancing Figure) | 70,400 |
| To Donations for Tournament | 40,000 | ||
| To Interest on Investments To donation for pavilion | 6000 50,000 | ||
| 3,82,000 | 3,82,000 |
Q.6- Following is the summary of cash transactions of Good Health Club for the year ending 31st March,2018:
| Particulars | ₹ |
| Opening Balance: | |
| Cash | 70,000 |
| Bank | 3,00,000 |
| Subscriptions Received: | |
| 2016-2017 | 40,000 |
| 2017-2018 | 3,75,000 |
| 2018-2019 | 20,000 |
| Donations for Gym | 1,64,000 |
| Admission Fees | 14,000 |
| Life Membership Fee | 45,000 |
| Wages and Salaries | 55,000 |
| Locker Rent | 11,000 |
| Invested in 9% Debentures of XYZ Ltd. | 2,40,000 |
| Health Journals | 5,000 |
| Stationery | 12,500 |
| Insurance Premium | 6,760 |
| Courier Charges | 800 |
| Municipal Taxes | 9,570 |
| Machinery Purchased | 38,000 |
| Sale of Old Newspapers | 300 |
| Interest on Bank Balance | 1 ,740 |
| Cash in Hand | 43,000 |
From the above summary prepare a Receipts and Payments Account of Good Health Club for the year ending 31st March, 2018.
solution:-
In the books of Good Health Club
Receipts and Account of Good Health Club for the year ending 31st March, 2018
| Receipts | ₹ | Payments | ₹ |
| To Balance B/d | By Wages and Salaries | 55,000 | |
| Cash | 70,000 | By 9% Debentures | 2,40,000 |
| Bank | 3,00,000 | By Health Journals | 5,000 |
| To Subscriptions Received: | By Stationery | 12,500 | |
| 2016-2017 | 40,000 | By Insurance Premium | 6,750 |
| 2017-2018 | 3,75,000 | By Courier Charges | 800 |
| 2018-2019 | 20,000 | By Municipal Taxes | 9,570 |
| To Donations for Gym | 1 ,64,000 | By Machinery Purchased | 38,000 |
| To Admission Fees | 14,000 | ||
| To Life Membership Fee | 45,000 | ||
| To Locker Rent | 11,000 | By Balance c/d | |
| To Sale of news paper | 300 | Cash | 43,000 |
| To Interest on Bank Balance | 1,740 | Bank (Balancing figure) | 6,30,410 |
| 10,41,040 | 10,41,040 |
Q.7- State how will be the prizes awarded of ₹ 5,000 shown while preparing the final accounts of a club for the year ending on 31st March, 2021.
Solution:- prizes awarded of ₹ 5,000 will be shown in the expenditure side of the income and expenditure account.
Income and expenditure account
| EXPENDITURE | ₹ | INCOME | ₹ |
| To prizes awarded | 5,000 |
Q.8 – How are the following items presented in financial statements of a Not-for-Profit organization?
(a) Tournament Fund 80,000;
(b) Tournament Expenses 14,000.
Solution :-
Extract of Balance sheet
| Liabilities | ₹ | Assets | ₹ | ||
| Tournament fund | 80,000 | ||||
| Add: Receipt from tournament | ……. | ||||
| Less : tournament expenses | 14,000 | 66,000 | |||
Q.9- How are the following items shown in the accounts of a Not-for-Profit Organisation?
| ₹ | |
| Tournament Fund | 50,000 |
| Tournament Expenses | 15,000 |
| Receipts from Tournament | 20,000 |
solution:-
Balance Sheet
| Liabilities | Rs. | Assets | Rs. | ||
| Tournament Fund | 50,000 | ||||
| Add : Tournament Receipts | 20,000 | ||||
| Less : Tournament Expenses | (15,000) | 55,000 | |||
Q.10- How are the following dealt with in the final 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 … |
solution :
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.
Q.11- How the following items for the year ended 31st March, 2019 will be presented in the financial statements of Aisko Club?
| Particulars | Dr. (₹) | Cr. (₹) |
| Tournament Fund | … | 1,50,000 |
| Tournament Fund Investments | 1,50,000 | … |
| Income from Tournament Fund Investments | … | 18,000 |
| Tournament Expenses | 12,000 | … |
Additional Information:– Interest Accrued on Tournament Fund Investments ₹ 6,000.
Solution :-
Extract of Balance sheet
| Liabilities | ₹ | Assets | ₹ | |
| Tournament fund | 1,50,000 | Tournament fund investment | 1,50,000 | |
| Add: Income from tournament fund investment | +18,000 | Accrued interest on Investment fund investment | 6,000 | |
| Add: interest Accrued on Investment fund investment | +6,000 | |||
| Less : tournament expenses | (12,000) | 1,62,000 | ||
| 1,62,000 |
Q.12– How will the following items be presented in the ‘Income and Expenditure Account’ of a club for the year ending 31st March, 2019 and the Balance Sheet as on that date?
| Particulars | ₹ |
| Tournament Fund on 1st April, 2018 | 3,00,000 |
| 10% Tournament Fund Investments on 1st April, 2018 | 3,00,000 |
| Interest received on Tournament Fund Investments | 30,000 |
| Sale of Tournament Tickets | 75,000 |
| Tournament Prizes Awarded | 60,000 |
Solution:-
Balance Sheet
| Liabilities | ₹ | Assets | ₹ | |
| Tournament Fund | 3,00,000 | |||
| Add: Interest on Tournament Fund Investment | +30,000 | 10% Tournament Fund Investments | 3,00,000 | |
| Add: Sale of Tournament Tickets | +75,000 | |||
| Less: Tournament Prizes Awarded | (60,000) | 3,45,000 | ||
| 3,45,000 |
Q.13- How are the following dealt with while preparing the final accounts of a club?
TRIAL BALANCE
As at 31st March, 2021
| Particulars | Dr. (₹) | Cr. (₹) |
| Match Fund | …… | 80,000 |
| Match Fund Investments | 72,000 | …. |
| Match Fund Bank Balance | 3,500 | …. |
| Interest on Match Fund Investments | ….. | 2,880 |
| Match Expenses | 5,500 | …. |
solution:-
Balance sheet
as on 31st march 2021
| Liabilities | Amt (₹) | Assets | ||
| MatchFund | 80000 | Match Fund Investment | 72,000 | |
| Add: Interest on Match Fund Investment | 2,880 | Match Fund Bank Balance | 3,500 | |
| Less: Match Expenses | (5,500) | 77,380 |
Q.14- 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, 2021:
| Particulars | ₹ |
| Match expenses paid during the year ended 31st March, 2021 | 1,02,000 |
| Match Fund as on 31st March, 2020 | 24,000 |
| Donation for Match Fund (Received during the year ended 31st March, 2021) | 40,000 |
| Proceeds from the sale of match tickets (Received during the year ended 31st March, 2021) | 15,000 |
Solution:-
Working Note: The total Match expenses amounts to ₹ 1,02,000 whereas the total amount available in the Match Fund is only ₹ 79,000 (i.e. ₹ 24,000 + ₹ 40,000 + ₹ 15,000). This implies that expenses of ₹ 79,000 is met through the Fund while the remaining expenses of ₹ 23,000 (i.e. ₹ 1,02,000 – ₹ 79,000) are debited to the Income and Expenditure Account.
Income and Expenditure Account
For the year ended 31st march 2021
| Expenditure | ₹ | Income | ₹ |
| Match Expenses (working Note) | 23,000 |
| Balance Sheet |
| as at 31st March, 2021 |
| Liabilities | Amount ( ₹) | Assets | Amount ( ₹) | |
| Match Fund | 24,000 | |||
| Add: Donation for Match Fund | + 40,000 | |||
| Add: Proceed from Sale of Tickets | + 15,000 | |||
| Less: Match Expenses (working Note) | (79,000) | NIL | ||
Q.15- Show how are the following items dealt with while preparing the final accounts for the year ended 31st March, 2021 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, 2020 is ₹ 10,00,000 and Capital Fund as at 31st March, 2020 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, 2020 is ₹ 10,00,000, and Capital Fund as at 31st March, 2020 is ₹ 20,00,000. Donation Received for Pavilion on 1st January, 2021 is ₹ 5,00,000.
solution :-
case 1
Balance Sheet (Extract)
as on March 31,2021
| Liabilities | Rs. | Assets | Rs. |
| Capital Fund | 20,00,000 | Pavilion Work – in – Progress | 6,00,000 |
case 2
Balance Sheet (Extract)
as on March 31,2021
| 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 31,2021
| 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 |
Q.16- During the year ended 31st March, 2021, subscriptions received by the Jaipur Literary Society were ₹ 4,20,000. These subscriptions include ₹ 14,000 received for the year ended 31st March, 2020. On 31st March, 2020, subscriptions due but not received were ₹ 10,000. What amount should be credited to Income and Expenditure Account for the year ended 31st March, 2021 as subscription?
solution:-
Income and Expenditure Account (Extract)
for the year ended March 31, 2021
| Expenditure | Rs. | Income | Rs. | |
| By Subscription | 4,20,000 | |||
| Less : Outstanding for 31st March 20 | (14,000) | |||
| Add : Outstanding for 31st March 20 | 10,000 | 4,16,000 |
Q.18– Subscriptions received during the year ended 31st March , 2021 are:
| ₹ | ₹ | |
| For the year ended 31st March, 2020 | 1,600 | |
| For the year ended 31st March, 2021 | 84,400 | |
| For the year ended 31st March, 2022 | 3,200 | 89200 |
There are 450 members, each paying an annual subscription of ₹ 200; ₹ 1,800 were in arrears for the year ended 31st March, 2020.
Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2021.
solution:-
Income and Expenditure Account
for the year ended March 31, 2019
| Dr. | Cr. | ||
| Expenditure | Rs. | Income | Rs. |
| By Subscription (450 Members × Rs.200 each) | 90,000 |
Q.19- During the year ended 31st March, 2021, subscriptions received by Kings Club, Delhi were ₹ 4,09,000 including ₹ 5,000 for the year ended 31st March, 2020 and ₹ 10,000 for the year ended 31st March, 2022. At the end of the year ended 31st March, 2021, subscriptions outstanding for the year ended 31st March, 2021 were ₹ 15,000. The subscriptions due but not received at the end of the previous year, i.e., 31st March, 2020 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, 2021.
solution:-
Statement of Subscription
for the year ended March 31, 2021
| Particulars | Rs. |
| Subscription received during the year 2020 -21 | 4,09,000 |
| Add : Outstanding for 2020 – 21 (Current year) | 15,000 |
| Less : Received for 2019 – 20 (Previous year) | (5,000) |
| Add : Advance received in 2019 – 20(Previous year) | 18,000 |
| Less : Advance received for 2021 – 22 (Next year) | (10,000) |
| Subscriptions to be credited to Income and Expenditure Account | 4,27,000 |
Q.20- From the following information, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2021:
| ₹ | ||
| 1st April, 2020 | Subscriptions in Arrears | 50,000 |
| Subscriptions Received in Advance | 30,000 | |
| 31st March, 2021 | Subscriptions in Arrears | 25,000 |
| Subscriptions Received in Advance | 70,000 |
Subscriptions received during the year ended 31st March, 2021 – ₹ 3,00,000
Subscription still in arrears for the year 2019 – 20 – ₹ 10,000.
solution:-
Statement of Subscription
for the year ended March 31, 2021
| Particulars | Rs. |
| Subscription received during the year 2020- 21 | 3,00,000 |
| Less : Subscription-in-Arrears for 2019 – 20 | (50,000) |
| Add : Subscription-in-Arrears for 2020 -21 | 25,000 |
| Add : Subscription-in-Advance for 2020 – 21 | 30,000 |
| Less : Subscription-in advance for 2021 -22 | (70,000) |
| Subscriptions to be credited to Income and Expenditure Account | 2,35,000 |
Q.21- From the following particulars, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2021:
| s.r.no. | ₹ | |
| [a] | Subscriptions in arrears on 31st March, 2020 | 500 |
| [b] | Subscriptions received in advance on 31st March, 2020 for the year ended on 31st March, 2021 | 1,100 |
| [c] | Total Subscriptions received during the year ended 31st March, 2021 (including ₹ 400 for the year ended 31st March, 2020 ₹ 1,200 for the year ended 31st March, 2022 and ₹ 300 for the year ended 31st March, 2023) | 35,400 |
| [d] | Subscriptions outstanding for year ended 31st March, 2021 | 400 |
Solution:-
Statement of Subscription
for the year ended March 31, 2021
| Particulars | Rs. |
| Subscriptions received during the year 2020- 21 | 35,400 |
| Less : Subscriptions-in-arrears received for 31st march 20 | (400) |
| Less : Subscriptions received-in-advance for 31st march 22 | (1,200) |
| Less : Subscriptions received-in-advance for 31st march 23 | (300) |
| Add : Subscriptions Outstanding for 31st march 2021 | 400 |
| Add : Subscriptions received in advance in 2020 for 31st march 2021 | 1,100 |
| Subscriptions to be credited to Income and Expenditure Account | 35,000 |
Q.22- How are the following items of subscriptions shown in the Income and Expenditure Account for the year ended 31st March, 2021 and Balance Sheets as at 31st March, 2020 and 2021?
| ₹ | |
| Subscriptions received during the year ended 31st March, 2021 | 3,58,500 |
| Subscriptions outstanding on 31st March, 2020 | 30,000 |
| Subscriptions received in Advance on 31st March,2020 | 22,500 |
| Subscriptions received in Advance on 31st March, 2021 | 13,500 |
| Subscriptions outstanding on 31st March, 2021 (including ₹ 12,500 for the year ended 31st March, 2020) | 37,500 |
solution:-
Income and Expenditure Account (Extract)
For the year ended March 31, 2021
| 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 31,2020
| Liabilities | Rs. | Rs. | |
| Subscriptions received in Advance | 2,2,500 | Subscriptions Outstanding | 30,000 |
Balance Sheet (Extract)
as on March 31,2021
| Liabilities | Rs. | Assets | Rs. |
| Subscriptions received in Advance | 13,500 | Subscriptions Outstanding | 37,50 |
Q.23- From the following information, prepare Subscription Account for the year ending 31st March, 2021:
| Particulars | 31st March, 2020 (₹) | 31st March, 2021 (₹) |
| Subscription in Arrears | 20,000 | 18,000 |
| Subscription in Advance | 13,000 | 11,000 |
In the year ending 31st March, 2021, 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.
solution:-
Subscriptions Account
| Date | Particular | Amount ( ₹) | Date | Particulars | Amount ( ₹) |
| April 01,2019 | To Outstanding Subscriptions A/c | 20,000 | April 01,2019 | By Subscriptions Received in Advance A/c | 13,000 |
| March 31,2020 | To Subscriptions Received in Advance A/c | 11,000 | March 31,2020 | By Subscriptions written off (Inc. & Exp. A/c) | 4,000 |
| March 31,2020 | To Income & Expenditure A/c (Balancing Figure) | 2,14,000 | March 31,2020 | By Bank A/c | 2,10,000 |
| March 31,2020 | By Outstanding Subscriptions A/c | 18,000 | |||
| 2,45,000 | 2,45,000 |
Q.24- Calculate amount of subscriptions which will be treated as income for the year ended 31st March, 2021 for each of the following cases:
| Particulars | ₹ | |
| CaseI. | (i) Subscriptions collected during the year ended 31st March, 2021 (ii) Subscriptions in arrears for the year ended 31st March, 2021 (iii) Subscriptions received in advance for the year ended 31st March, 2022 | 2,50,000 6,000 5,000 |
| Case II. | (i) Subscriptions collected during the year ended 31st March, 2021 (ii) Subscriptions for the year ended 31st March, 2021 collected in the year ended 31st March, 2020 (iii) Subscriptions unpaid for the year ended 31st March, 2021 | 49,000 3,000 2,000 |
| Case III. | (i) Subscriptions received during the year ended 31st March, 2021 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2021 (iii) Subscriptions not yet collected for the year ended 31st March, 2021 | 25,000 3,000 5,000 |
| Case IV. | (i) Subscriptions received during the year ended 31st March, 2021 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2021 (iii) Subscriptions not yet collected for the year ended 31st March, 2021 (iv) Subscriptions received in advance for the year ended 31st March, 2022 | 80,000 5,000 8,000 2,000 |
| Case V. | (i) Subscriptions received during the year ended 31st March, 2021 (ii) Subscriptions outstanding at the end of the year ended 31st March, 2020 (iii) Subscriptions received in advance on 31st March, 2020 (iv) Subscriptions received in advance on 31st March, 2021 (v) Subscriptions not yet collected for the year ended 31st March, 2021 | 90,000 5,000 3,000 4,000 6,000 |
solution:-
Case 1
Statement of Subscription
for the year ended March 31, 2021
| Particulars | Rs. |
| Subscriptions received during the year 2020 – 21 | 2,50,000 |
| Add : Subscriptions -in -arrears for the year 2020 – 21 | 6,000 |
| Less : Subscriptions received in advance for the year 2021 – 22 | (5,000) |
| Subscriptions Income for the year 2020 – 21 | 2,51,000 |
Case 2
Statement of Subscription
for the year ended March 31, 2021
| Particulars | Rs. |
| Subscriptions received during the year 2020 – 21 | 49,000 |
| Add : Subscriptions collected for 2020 – 21 in 2019 – 20 | 3,000 |
| Add : Subscriptions unpaid for the year 2020-21 | 2,000 |
| Subscriptions Income for the year 2020-21 | 54,000 |
Case 3
Statement of Subscription
for the year ended March 31, 2021
| Particulars | Rs. |
| Subscriptions received during the year 2020-21 | 25,000 |
| Less : Subscriptions outstanding in the beginning of 2020 – 21 | (3,000) |
| Add : Subscriptions yet not collected for 2020 – 21 | 5,000 |
| Subscriptions Income for the year 2020 – 21 | 27,000 |
Case 4
Statement of Subscription
for the year ended March 31, 2021
| Particulars | Rs. |
| Subscriptions received during the year 2020 – 21 | 80,000 |
| Less : Subscriptions Outstanding in the beginning of 2020 – 21 | (5,000) |
| Add : Subscriptions yet not Collected for 2020 – 21 | 8,000 |
| Less : Subscriptions for 2021 – 22 received in advance | (2,000) |
| Subscriptions Income for the year 2020 – 21 | 81,000 |
Case 5
Statement of Subscription
for the year ended March 31, 2021
| Particulars | Rs. |
| Subscriptions received during the year 2020 – 2021 | 90,000 |
| Less : Subscriptions Outstanding at the end of 2019 – 20 | (5,000) |
| Add : Subscriptions received in advance on March 31, 2020 | 3,000 |
| Less : Subscriptions received in advance on March 31, 2021 | (4,000) |
| Add : Subscriptions not yet collected for 2020 – 21 | 6,000 |
| Subscriptions Income for the year 2020 – 21 | 90,000 |
Q.25- Calculate the income from subscription for the year 2020-21 to be credited to Income and Expenditure
Account from the following information relating to a club:
| Particulars | ₹ |
| Subscription received during the year (including ₹ 50,000 for 2019-20, ₹75,000 for 2021-22 and ₹ 25,000 for 2022-23) | 19,50,000 |
| Subscription received in advance as on 1st April, 2020 (including ₹ 37,500 for 2021-22) | 87,500 |
| Subscription outstanding as on 1st April, 2020 | 1,00,000 |
| Subscription outstanding as on 31st March, 2021 | 1,25,000 |
Out of subscription outstanding as on 1st April, 2020, ₹ 37,500 are no larger receivable.
Solution :-
Working notes
| 1. | Subscription-in-Arrears (31st March, 2021): | ₹ |
| 2019-20 (₹ 1,00,000- ₹ 50,000- ₹ 37,500) | 12,500 | |
| 2020-21 (Balancing Figure) | 1,12,500 | |
| Subscription-in-Arrears as on 31st March, 2021 | 1,25,000 |
| 2. | Subscription received in Advance (31st March, 2021): | ₹ |
| for 2021-22 (75,000 + 37,500*) | 1,12,500 | |
| for 2022-23 | 25,000 | |
| Total | 1,37,500 |
₹ 50,000 is for 2020-21.
SUBSCRIPTION ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
| To Balance b/d (Arrears in beginning) | 1,00,000 | By Balance b/d (Advance in beginning) | 87,500 |
| By Bank A/c | 37,500 | ||
| To Balance c/d (Advance at end) | 1,37,500 | By Income and Expenditure A/c (Sub. written off) | 19,50,000 |
| To Income and Expenditure A/c (Balancing Figure) | 19,62,500 | By Balance c/d (Arrears at end) | 1,25,000 |
| 22,00,000 | 22,00,000 |
Q.26- 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, 2021:
| Particulars | 1st April, 2020 (₹) | 31st March, 2021 (₹) |
| 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, 2021 were ₹ 60,80,700.
solution:-
Statement of Medicine Consumed
during the year ended 31st March, 2021
| Particulars | Amount (₹) |
| Medicine Purchased during the year 2020-21 | 60,80,700 |
| Add: Stock in the beginning (as on April 01, 2020) | 1,75,750 |
| Less: Stock at the end (as on March 31, 2021) | (1,44,650) |
| Medicine to be debited to Income and Expenditure Account | 61,11,800 |
Q.27- Calculate amount to be posted to the Income and Expenditure Account for the year ended 31st March, 2021:
| (i) | Amount paid for stationery during the year ended 31st March, 2021 – ₹5,400; Stock of Stationery in Hand on 31st March, 2021 – ₹ 250. | |
| (ii) | Stock of Stationery in Hand on 1st April, 2020 – ₹ 1,500; Payment made for Stationery during the year ended 31st March, 2021 – ₹ 5,400; Stock of Stationery in Hand on 31st March, 2021 – ₹ 250. | |
| ₹ | ||
| (iii) | Stock of Stationery on 1st April, 2020 | 1,500 |
| Creditors for Stationery on 1st April, 2020 | 1,000 | |
| Amount paid for Stationery during the year | 5,400 | |
| Stock of Stationery on 31st March, 2021 | 250 |
solution:-
part 1
Statement of Stationery Consumed
at the end of March 31, 2021
| Particulars | Amount (₹) |
| Amount paid for Stationery during the year ended 31st March, 2021 | 5,400 |
| Less: Closing Stock (as on March 31, 2021) | 250 |
| Amount of Stationery to be posted to Income and Expenditure Account | 5,150 |
part 2
Statement of Stationery Consumed
at the end of March 31, 2021
| Particulars | Amount (₹) |
| Payment made for Stationery during the year ended 31st March, 2021 | 5,400 |
| Add: Opening Stock (as on April 01, 2020) | 1,500 |
| Less: Closing stock (as on March 31, 2021) | 250 |
| Amount of Stationery to be posted to Income and Expenditure Account | 6,650 |
part 3
Statement of Stationery Consumed
at the end of March 31, 2021
| Particulars | Amount (₹) |
| Amount paid for Stationery during the year ended 31st March, 2021 | 5,400 |
| Add: Opening Stock (as on April 01, 2020) | 1,500 |
| Less: Closing stock (as on March 31, 2021) | 250 |
| Less: Creditors for Stationery in the beginning (April 01, 2020) | 1,000 |
| Amount of Stationery to be posted to Income and Expenditure Account | 5,650 |
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