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Q.28– From the following information, calculate the amount of sports material to be debited to ‘Income and Expenditure Account’ of a sports club for the year ending 31st March, 2019:
| ₹ | |
| Stock of Sports Material on 1st April, 2018 | 10,000 |
| Stock of Sports Material on 31st March, 2019 | 7,500 |
| Creditors for Sports Material on 1st April, 2018 | 20,000 |
| Creditors for Sports Material on 31st March, 2019 | 22,500 |
| Payment made to creditors of Sports Material during the year ending 31st March, 2019 | 1,00,000 |
Solution :-
Creditors for Sports Materials
| Particular | ₹ | Particular | ₹ |
| To Bank A/c (Payment made to creditors of Sports Material) | 1,00,000 | By Balance B/d | 20,000 |
| To Balance C/d | 22,500 | By Stock of Sports Material A/c (Credit Purchases) | 1,02,500 |
| 1,22,500 | 1,22,500 |
Stock of Sports Material
| Particular | ₹ | Particular | ₹ |
| To balance B/d | 10,000 | By Income and Expenditure A/c (Material Consumed) [Balancing Figure] | 1,05,000 |
| To Creditors for Sports Materials A/c(transfer) | 1,02,500 | By Balance C/d | 7,500 |
| 1,12,500 | 1,12,500 |
Q.29- 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, 2019:
| 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, 2018 | 50,000 |
| (v) | Sports material as on 31st March, 2019 | 55,000 |
| (vi) | Creditors for sports material as on 31st March, 2018 | 37,000 |
| (vii) | Creditors for sports material as on 31st March, 2019 | 45,000 |
Solution:-
Calculation of Amount of Sports Material Consumed to be debited to Income & Expenditure A/c
| Particulars | ₹ |
| Amount Paid to the Creditors of Sports Materials | 91,000 |
| Less: | |
| Creditors of the sports material as on 31st March, 2018 | 37,000 |
| Closing Stock of Sports Material as on 31st March, 2019 | 55,000 |
| Sports Material sold during the year | 50,000 |
| Add: | |
| Creditors of the sports material as on 31st March, 2019 | 45,000 |
| Cash purchase of Sports Material | 40,000 |
| Opening Stock of Sports Material as on 31st March, 2018 | 50,000 |
| Amount to be debited to Income & Expenditure A/c | 84,000 |
Q.30- From the following information of a charitable dispensary, calculate the amount or medicines consumed during the year that would appear in the Income and Expenditure Account for the year ending 31st March, 2019:
| Particulars | ₹ |
| Stock of Medicines on 1st April, 2018 | 60,000 |
| Creditors for Medicines 1st April, 2018 | 40,000 |
| Stock of Medicines 31st March, 2019 | 10,000 |
| Creditors for Medicines 31st March, 2019 | 25,000 |
| Advances for Medicines 31st March, 2019 | 22,000 |
| Credit purchases of Medicines during the year | 2,76,000 |
| Cash purchases of Medicines during the year | 46,500 |
Solution:-
Calculation of Amount of Medicines Consumed that would appear in Income & Expenditure A/c for the year ending 31st March, 2019
| Particular | ₹ |
| Stock of Medicines on 1st April, 2018 | 60,000 |
| Add: | |
| Credit purchases of Medicines during the year | 2,76,000 |
| Cash purchases of Medicines during the year | 46,500 |
| Less: | |
| Stock of Medicines 31st March, 2019 | (10,000) |
| Material Consumed | 3,72,500 |
Q.31- Calculate the amount that will be posted to the income and Expenditure Account for the year ended 31st March, 2021:
| Particular | ₹ |
| Stock of Stationery on 1st April, 2020 | 30,000 |
| Creditors for Stationery on 1st April, 2020 | 20,000 |
| Advances paid for Stationery carried forward from the year ended 31st March, 2020 | 2,000 |
| Amount paid for Stationery during the year ended 31st March, 2021 | 1,08,000 |
| Stock of Stationery on 31st March, 2021 | 5,000 |
| Creditors for Stationery on 31st March, 2021 | 13,000 |
| Advance paid for Stationery on 31st March, 2021 | 3,000 |
Solution:-
Statement of Stationery
for the year ended March 31st, 2021
| Particular | ₹ |
| Amount paid for Stationery during the year 2020-21 | 1,08,000 |
| Add: | |
| Opening Stock (as on Apr. 01, 2020) | 30,000 |
| Creditors at the end (as on Mar. 31, 2021) | 13,000 |
| Advances paid for Stationery carried forward from the year ended 31st March, 2020 | 2,000 |
| Less: | |
| Creditors in the beginning (as on Apr. 01, 2020) | 20,000 |
| Advance paid for Stationery on 31st March, 2021 | 3,000 |
| Stock of Stationery on 31st March, 2021 (closing stock) | 5,000 |
| Amount to be posted to Income and Expenditure Account | 1,25,000 |
Q.32- From the following information of a Not-for-Profit Organization, show the ‘Sports Materials’ item in the Income and Expenditure Account for the year ended 31st March, 2021 and Balance Sheets as at 31st March, 2020 and 31st March, 2021:
| Particulars | 31st March, 2020 ₹ | 31st March, 2021 ₹ |
| Stocks of Sports Materials | 6,200 | 4,800 |
| Creditor for Sports Materials | 9,800 | 7,200 |
| Advance to Supplier for Sports Materials | 11,000 | 19,000 |
Solution:-
Working note – Calculation of Sports Material Consumed
| Particulars | Amount ( ₹) |
| Sports Material | 1,02,000 |
| Add: Opening Stock | 6,200 |
| Less: Closing Stock | (4,800) |
| Less: Creditors in the beginning | (9,800) |
| Add: Creditors at the end | 7,200 |
| Less: Advance at the end | (19,000) |
| Add: Advance in the beginning | 11,000 |
| Sports Material Consumed | 92,800 |
Extract of Income and Expenditure Account
for the year ended March 31, 2021
| Expenditure | Amount ( ₹) | Income | Amount ( ₹) |
| Sports Material Consumed | 92,800 |
Balance Sheet
as on March 2020
| Liabilities | Amount ( ₹) | Assets | Amount ( ₹) |
| Creditors for Sports Materials | 9,800 | Stock of Sports Materials | 6,200 |
| Advance paid for Sports Materials | 11,000 |
Balance Sheet
as on March 2021
| Liabilities | Amount ( ₹) | Assets | Amount ( ₹) |
| Creditors for Sports Materials | 7,200 | Stock of Sports Materials | 4,800 |
| Advance paid for Sports Materials | 19,000 |
Q.33- How are the following dealt with while preparing the final accounts for the year ended 31st March, 2021?
RECEIPTS AND PAYMENTS ACCOUNT(AN EXTRACT)
for the year ended 31st March, 2021
| Receipts | ₹ | Payments | ₹ |
| By Payments forMedicines | 1,50,000 |
| Additional Information: | As at 1st April, 2020 (₹) | As at 31st March, 2021 (₹) |
| Stock of Medicines | 50,000 | 75,000 |
| Creditors for Medicines | 40,000 | 60,000 |
Solution:-
Income and Expenditure Account
for the year ended March 31, 2021
| Payment | ₹ (inner column) | Amount ( ₹) | Income | Amount ( ₹) |
| 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, 2020
| Liabilities | Amount ( ₹) | Assets | Amount ( ₹) |
| Creditors for Medicines | 40,000 | Stock of Medicines | 50,000 |
Balance Sheet
as on March 31, 2021
| Liabilities | Amount ( ₹) | Assets | Amount ( ₹) |
| Creditors for Medicines | 60,000 | Stock of Medicines | 75,000 |
Q.34- How are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March, 2021?
RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31st March, 2021
| Receipts | ₹ | Payments | ₹ |
| To Sale of Sports Materials (Book value ₹ 20,000) | 26,000 | By Creditors for Sports Materials | 61,000 |
| By Cash purchase of Sports Materials | 10,000 |
| Additional Information | As at 31st March, 2020 ( ₹) | As at 31st March, 2021 ( ₹) |
| Sports Materials | 20,000 | 25,000 |
| Creditors for Sports Materials | 7,000 | 15,000 |
Solution:-
Income and Expenditure Account
for the year ended March 31, 2021
| Payment | ₹ (inner column) | Amount ( ₹) | Income | Amount ( ₹) |
| Payment for Sports Material | 71,000 | Profit on Sale of Sports Material (26,000-20,000) | 6,000 | |
| Add: Opening Stock | 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
as on March 31, 2020
| Liabilities | Amount ( ₹) | Assets | Amount ( ₹) |
| Creditors for Sport Materials | 7,000 | Stock of Sport Materials | 20,000 |
Balance Sheet
as on March 31, 2021
| Liabilities | Amount ( ₹) | Assets | Amount ( ₹) |
| Creditors for Sport Materials | 15,000 | Stock of Sport Materials | 25,000 |
Q35- How will be the following items dealt while preparing the Balance Sheet for the year ending 31st March, 2021 of Confident Club?
| Particular | ₹ | |
| (a) | Building Fund | 500,000 |
| Donation Received for the Building | 12,50,000 | |
| Expenditure on Building Construction (WIP) | 11,25,000 | |
| (b) | Match Fund as on 1st April, 2020 | 7,500 |
| Donation Received for Matches | 12,500 | |
| Match Expenses | 21,000 | |
| Proceeds for Sale of Match Tickets | 17,500 | |
| (c) | Life Membership Fees Received during the Year | 20,000 |
| (d) | Subscription for Governor’s Party | 30,000 |
| Outstanding Subscription for Governor’s Party | 5,000 | |
| (e) | Capital Fund as on 1st April, 2020 | 12,50,000 |
Solution:-
Extract of Balance sheet of Confident Club
| Liabilities | ₹ (inner column) | Amount ( ₹) | Assets | Amount ( ₹) |
| Capital Fund as on 1st April, 2020 | 12,50,000 | Expenditure on Building Construction (WIP) | 11,25,000 | |
| Add: Life Membership Fees Received during the Year | 20,000 | Outstanding Subscription for Governor’s Party | 5,000 | |
| Add: Expenditure on Building Construction (WIP) | 11,25,000 | 23,95,000 | ||
| Building fund | 5,00,000 | |||
| Add: Donation Received for the Building | 12,50,000 | |||
| Less: Expenditure on Building Construction | (11,25,000) | 6,25,000 | ||
| Match Fund as on 1st April, 2020 | 7,500 | |||
| Add: Donation Received for Matches | 12,500 | |||
| Add : Proceeds for Sale of Match Tickets | 17,500 | |||
| Less : Match Expenses | (21,000) | 16,500 | ||
| Governor’s Party fund: | ||||
| Subscription for Governor’s Party | 30,000 | |||
| Add: Outstanding Subscription | 5,000 | 35,000 |
Q.36- The book value of furniture on 1st April, 2020 is ₹ 60,000. Half of this furniture is sold for ₹ 20,000 on 30th September, 2020. 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, 2021.
Solution:-
Working note
| Particulars | Amount ( ₹) |
| Book Value of Furniture Sold as on April 01, 2020 | 30,000 |
| Less: Depreciation (for 6 Months) (3,000 × 10% × 6/12) | 1,500 |
| Book Value of Furniture as on Sept. 30, 2020 | 28,500 |
| Less: Sale Value | 20,000 |
| Loss on Sale of Furniture | 8,500 |
Furniture Account
| Date | Particulars | Amount ( ₹) | Date | Particulars | Amount ( ₹) |
| 2020 | 2020 | ||||
| April 01 | To Balance b/d | 60,000 | Sept.30 | By bank (sale ) | 20,000 |
| Sept.30 | By depreciation | 1.500 | |||
| Sept.30 | By Income and Expenditure (Loss on Sale) | 8,500 | |||
| 2021 | |||||
| March 31 | Depreciation on remaining machine for whole year | 3,000 | |||
| March 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, 2021
| Expenditure | Amount ( ₹) | Income | Amount ( ₹) |
| Depreciation on Furniture (1,500 + 3,000) | 4,500 | ||
| Loss on Sale of Furniture | 8,500 |
Q.37- Delhi Youth Club has furniture at a value of ₹ 2,20,000 in its book on 31st March, 2020. It sold old furniture, having book value of ₹ 20,000 as at 1st April , 2020 at a loss of 20% on 31st December, 2020. Furniture is to be depreciated @ 10% p.a. Furniture costing ₹ 1,50,000 was also purchased on 1st October, 2020.
Prepare Furniture Account for the year ended 31st March, 2021.
Solution:-
Working Note
Calculation of Profit or Loss on Sale of Furniture
| Particulars | Amount ( ₹) |
| Book Value of Furniture (i) as on April 01, 2019 | 20,000 |
| Less: Depreciation (for 9 Months) [20,000 × 10% × 9/12] | (1,500) |
| Book Value on December 31, 2019 | 18,500 |
| Less: Loss on Sale of Furniture (18,500 × 20%) | (3,700) |
| Sale Value of Furniture | 14,800 |
Furniture Account
| Date | Particulars | Amount ( ₹) | Date | Particulars | Amount ( ₹) |
| 2020 | 2020 | ||||
| April 01 | To Balance b/d (i) 2,00,000 (ii) 20,000 | 2,20,000 | Dec. 31 | By bank (sale ) (ii) | 14,800 |
| Oct. 01 | To Bank (iii) | 1,50,000 | Dec. 31 | By depreciation (ii) | 1,500 |
| Dec. 31 | By Income and Expenditure (Loss on Sale) | 3,700 | |||
| 2021 | |||||
| March 31 | Depreciation on (i) 20,000 (ii) 7,500 (for 6 months) | 27,500 | |||
| March 31 | By Balance c/d (i) 1,80,000 (ii) 1,42,500 | 3,22,500 | |||
| 3,70,000 | 3,70,000 |
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