Financial statements of Not-for-profits-Important Questions

IMPORTANT QUESTIONS

CHAPTER 1: Financial Statements of Not-for-profit Organization

  1. Write the characteristics of not-for-profit organization?
  2. Write the features of Receipts & payments account?
  3. From the given information prepare a receipt and payment account for SK ltd. For the year ended 31st March 2018.
    Receipts Amount Payments Amount
    Opening cash balance 25,000 Sale of old sports material 30,000
    Opening bank balance Donation received for pavilion 115000
    Subscriptions collected for Rent paid 75000
    2015-2016 12500
    		Sports material purchased 120000
    2016-2017 19000
    		Purchase of refreshments 15000
    2017-2018 22500
    		225000 Expenses for maintenance of tennis court 50000
    Sale of refreshments 25000 Salary paid 62500
    Entrance fees received 25000 Tournament expenses 60000
    Furniture purchased 37500
    Office expenses 30000
    Closing hand in cash 10000
  4. Write the features of Income and Expenditure account?
  5. Distinguish between Receipts & payment account and Income & Expenditure account?
  6. From the under mentioned receipts and payment account for the year ending march 31 , 2019 of peoples club prepare income & expenditure account for the same period
    Receipts & Payment Account for the year March 2019
    Expenditure Amount Incomes Amount
    Balance c/d bank 112500 Purchase of furniture (1.7.17) 22500
    Subscriptions Salaries 9000
    2017 6750
    		Telephone expenses 1350
    2018 45000
    		Electricity expenses 2700
    2019 2250
    		54000 Postage & stationary 675
    Donations 9000 Purchase of books 11250
    Rent of hall 1350 Entertainment expenses 4050
    Interest on bank deposits 2025 Purchases of 5% government papers (1.7.17) 36000
    Entrance fees 4500 Miscellaneous expenses 2700
    Balance c/d :
    Cash 1350
    Bank 91800
    183375 183375
    The following are the additional information available:-
    1. Salaries outstanding — Rs 6750
    2. Entertainment expenses outstanding — Rs 2250
    3. Bank interest receivables — Rs 675
    4. Subscriptions accrued — Rs 1800
    5. 50% of entrance fees is to be capitalized.
    6. Furniture is to be at 10% per annum.
  7. How are the following accounted in a Not-for-profit organization?
    1. Tournament Fund Rs 2,00,000; tournament expenses Rs.60,000; receipts from tournament Rs. 80,000
    2. Billiard match expenses Rs. 25000
    3. Prize Fund Rs 1,00,000; Interest on prize fund investments Rs 10,000; prizes paid Rs 20,000, prizes fund investment Rs 80,000
    4. Receipts from cinema show tickets Rs 50,000; expenses on cinema show Rs 15,000
    5. Expenditure on construction of pavilion during the year was Rs 6, 00,000. The construction work in progress and not yet completed. Pavilion fund as on 31st march 2018 Rs. 8,00,000. Donation received on 15th September 2018 Rs. 10,00,000; capital fund as at 31st march 2018 Rs. 20, 00,000.
  8. How are the following items dealt in preparing Income & Expenditure account for the year ended 31st March 2019 and balance sheet as that date?
    As at 1st April 2018 As at 31st March 2019
    Sundry expenses outstanding 5000 9000
    Sundry expenses paid in advance 8000 7000
    Sundry expenses paid during the year ended 31st march 2019 Rs. 40,000