NPO

FINAL ACCOUNT OF NON PROFITABLE

ORGANISATION

SURPLUS TALLYDR. Narendra 3895 9300DR. SUBHASH RAJE 80800 148200Dr. Arjun Patil 74700 109200Western Gymkhana 1907 20605Kalpana Hospital 108000 626500Sangameshwar Sports club.. 115500 1377500Bajrangbali 107980 313200Modern sports club 300 72250Padmavati high school 17400 866400Memorial hospital - 39100 1007900Nanavathi Hospital - 10690 385810Young sports club 15830 70030

ANSWERS OF BELOW QUESTIONS

Introduction: Profitable organisations are those organisations in which their main motive is to earn profit and Not for Profit Organisations (NPO) are those organisations in which their main motive is not to earn profit but to render services to their members. Profitable organisations prepare Profit & Loss account for the year ended to know the result of the business and a balance sheet as on that date to know the financial position of the business. NPO prepares Income & Expenditure account for the year ended to know the surplus or deficit of the organisation and a balance sheet to know the financial position of the organisation. Examples of profitable organisations are: Sole trading concerns, Partnership firms, Companies, etc. Examples of NPO are: Schools, Colleges, Hospitals, Sports club, etc. In simple words, “A concern or an organisation which is formed and established to serve society or general public by undertaking various activities without any profit motive is called a ‘not for profit’ concern.”

Receipts Amount Payments AmountTo CashTo VisitsTo Sundry Receipts

100007000

400

By FurnitureBy EquipmentBy DrugsBy SalariesBy Rent By conveyanceBy StationeryBy LightingBy periodicalsBy DrawingsBy Balance c/d

1500250020001000

500700100125100

43754500

17400 17400

Dr. Narendra commenced practice in the month of April 2007. He prepared the following Receipts & Payments Account for the year ended 31st March, 2008.

Receipts and Payments A/c For the year ended 31st March, 20081.Rs 200 were to be received on account of visits. 2.Unpaid Salaries Rs. 2003.60% of conveyance is for private purposes. 4.Value of drugs on hand was estimated at Rs. 1,000.5.Depreciate furniture and equipment by 10%6.Prepare Income and Expenditure account and balance sheet.

•Dr. Subhash Raje started practice as a medical practitioner on 1st April, 2007. He gives you the Receipts & Payments Accounts for the year 2007 – 08 and the adjustments to be made. Prepare his Income and Expenditure Account and Balance sheet for 2007 -08. Receipts and payments account for the year

ended 31st March, 2008.

Adjustments: Receipts in arrears are: Visits Rs. 11,500 and Dispensary Rs. 9,000.The outstanding salaries are Rs. 1,800 and the outstanding expenses on drugs are also Rs. 3,000. 40% of the amount spent on conveyance was for domestic use. Stock of drugs in hand at the close of the year was worth Rs. 4,200. Depreciate furniture at 5% p.a. and equipments at 10% p.a. Furniture and equipment purchased on 1st April 2007.

Receipts Amount Payments AmountTo Cash IntroducedTo VisitsTo Receipts From DispensaryTo Sundry Receipts

107500840006400012000

By FurnitureBy EquipmentBy DrugsBy SalaryBy RentBy ConveyancesBy StationeryBy LightingBy JournalsBy DrawingsBy Balance c/f

500004000035000240006000

180005600

100001200

3770040000

267500 267500

Receipts Amount Payments AmountTo cash introduced (Capital fund)To income from visitsTo Receipts from DispensaryTo Miscellaneous receiptsTo Interest on InvestmentsTo Receipts from Operation fees

300004000080000

1000500

10000

By FurnitureBy Honorarium to DoctorBy EquipmentsBy Purchase of DrugsBy Compounders SalaryBy Rent of DispensaryBy Conveyance chargesBy StationaryBy Operation ExpensesBy LightingBy Journals and NewspapersBy Telephone expensesBy InvestmentsBy Balance c/d(Closing Balance)

4000010000500001000012000

60002000

6008000

400800500

720014000

161500 161500

Dr. Arjun Patil commenced Medical practice on 1.4.2006. He has prepared the following Receipts and payments account for the years 31.3.2007. [September, 2009] Receipts and payments account for the year 31st March 2007

Adjustments.•Rs. 5000 were still to be received on account of the visits. Compounder salary of Rs. 3000 and Bill of stationary Rs. 1000 and Rent of dispensary Rs. 1000 are outstanding. 25% amount of conveyance charges were for private use. Stock of Drugs on hand was estimated at Rs. 2000. Furniture and Equipments are to be depreciated at 10%. Prepare Income and expenditure account for the year ended 31st March 2007 and Balance sheet as on that date from the above information.

•From the following Receipts and payments account of Western Gymkhana for the year ended 31st March, 2007 and other information, prepare Income and Expenditure account for the year ended on and a Balance Sheet as at that date. (March 2008, modified)

•The Gymkhana has 450 members paying an annual subscription of Rs. 10/- each. •Rs. 20/- is still in arrears towards subscription for the year 2006. •Carry forward Rs. 20/- or rates paid in advance. •Provide Rs. 200/- for salaries outstanding. •The Gymkhana owns Land and Building standing in the books of Rs. 15,000/- and Furniture standing at Rs. 1,150, on which depreciation at 5% and 20% respectively is to be written off. •The Capital Fund as on 1st April, 2006 was Rs. 16,695/- •50% of the Entrance Fees is to be capitalised. Donations are capitalised.

Receipts Rs. Payments Rs. To Balance B/FTo Subscriptions for:200620072008To DonationsTo Entertainment ReceiptsTo InterestTo Entrance Fees

1,04085

4000103

1200876

811000

By salariesBy Entertainment ExpensesBy Electric chargesBy General ExpensesBy Rates and TaxesBy InvestmentsBy Stationery and PrintingBy Expenses of 2006By Fixed DepositBy Balance c/f

1300645234350120

3000241600

1000895

8385 8385

•Following is the Receipts and Payments Account and additional information of Kalpana Hospital, Sakri. (March 2012)Receipts and Payments account for the year ended 31st March, 2010

Additional Information:•Outstanding subscription for 200 9 – 2010 is amounted to Rs. 5000.•Hospital Equipments and Furniture were purchased on 1.10.2009 and both were to be depreciated at 20% p.a. •Life membership fees are to be capitalized. •Donations represent donations for Building fund. •Staff salary for the current year is outstanding Rs. 7500. •On 1.4.2009, the hospital had the following assets and liabilities: Land and Building Rs. 250000, Investments Rs. 50000, Ambulance Rs. 1,02,500, Bank Loan Rs. 2,00,000. •Capital fund as on 1.4.2009 was amounted to Rs. 2,16,000. Prepare: Income and Expenditure Account for the year ending 31st March, 2010 and the Balance Sheet as on that date.

Receipts Rs. Payments Rs. To Balance b/dTo Subscriptions200 8 – 20092009 – 20102010 – 2011To DonationsTo Life Membership FeesTo Hospital Receipts (Revenue)

6000

750095000150005500025000

150000

By MedicinesBy Honorarium to DoctorsBy Ambulance MaintenanceBy Hospital EquipmentsBy Furniture PurchasedBy Fixed DepositsBy Balance C/d

1000075000440003000025000

10000069500

353500 353500

•From the following Receipts and Payments Accounts of Sangameshwar Sports Club for the year ending 31st March, 2007 and Balance Sheet as on that date. (September 2010)Receipts and Payments Account For the year ended on 31st March, 2007.

Adjustment •Subscriptions include Rs. 2000 received for the year 2005 – 2006 and subscription of Rs. 5000 is due to for current year but not received yet. •Assets as on 1st April, 2006 were as follows.

i.Building Rs. 300000ii.Sports Material Rs. 250000iii.Investments Rs. 150000iv.Furniture Rs. 150000.

•Provide depreciation on Building, Sports Material and Furniture at 5% p.a. •Capitalise 50 % of Donations and Entrance Fees. •Insurance of Rs. 5000 is paid in advance. •Salaries are outstanding at Rs. 5000 and Interest Rs. 5000 is due but not received. Capital fund was Rs. 10,82,000 as on 1-4-2006. `

Receipts Rs. Payments Rs.

To Balance (1-4-06)Cash in HandCash at BankTo SubscriptionsTo DonationsTo Entrance feesTo interestTo Miscellaneous Receipts

1500021500

012500

022500

012500

01500015000

By SalariesBy WagesBy Postage and TelegramBy Printing and StationeryBy Hire of GroundBy Sports Material (Purchased on 1-1-07)By Insurance By Balance (31.3.07)Cash in HandCash at bank

40,00040,00015,00025,00015,000

2,00,000

50,000

10000340000

735000

735000

Following is the summary of Receipts and Payments of Jay Bajrangbali Vyayam Shala, Ajara for the year ending 31.03.2007. (March 2010)Receipts and payments Account for the year ended on 31st March 2007.

Receipts Rs. Payments Rs.

To Balance b/dTo Subscription2005 – 062006 – 07To Donation for BuildingTo Receipts from EntertainmentsTo InterestTo Entrance Fees

41600

412016000

050000

36440

324045000

By SalaryBy LightingBy General ExpensesBy Entertainment ExpensesBy Taxes PaidBy Printing and StationeryBy Expenses of 2005 – 2006By InvestmentBy Fixed Deposit with Ajara Urban BankBy Balance C/d

55000100001536025800

50009440

2400012000

040000

35800

340400

340400

Adjustments: •Jay Bajrangbali Vyayam Shala has 4500 members paying annual subscription of Rs. 40 each. •Provide for outstanding salary Rs. 5000.•On 1.4.2006 the assets stood as under:

i.Land and building Rs. 60,000.ii.Furniture Rs. 46000

Depreciate the above assets at 10% p.a. •Interest on Investment Rs. 2000 is not received. •Capital Fund was Rs. 1,27,720 on 1-4-2006..•50% of the entrance fees is to be capitalised. Prepare: Income and Expenditure account for the year ended 31st march 2007 and balance sheet as on that date.

•The following is the Receipts and payments Account of Modern Sports Club, Satara, for the year ended on 31st March, 2007. (March 2009)Receipts and Payments Account for the year ended on 31st March, 2007. Receipts Rs. Payments Rs. To Balance b/d To Subscription To Entrance FeesTo Interest on InvestmentsTo Proceeds from MatchesTo Life member fees

149013600

520840

5180

5000

By Upkeep of GardenBy wagesBy SalaryBy Ground rentBy PrintingBy Postage By Bank balanceBy Balance c/d

950023607000

210930190

50001440

26630 26630

Adjustments:1. Ledger balances of the club as on 31.3.2006 were

Capital fund Rs. 66,430, Club house and ground Rs. 40,000, Investments Rs. 18,640, furniture Rs. 6,400, and outstanding subscription Rs. 600.

2.Printing includes Rs. 200, Upkeep of garden includes Rs. 500 and Subscription includes Rs. 400 for the previous year. 3.Entrance fees are to be capitalized. 4.The Rotary club of Satara owed Rs. 210 for the use of club hall. 5.Provide 10% depreciation on furniture. 6.Subscriptions outstanding for the current year were Rs. 1,000.

Prepare _Income and Expenditure account for the year ended 31st March, 2007 and Balance Sheet as on that date.

Liabilities (Rs.) Assets (Rs.)Entrance feesCapital fund

30000519000

FurnitureComputer laboratoryLibraryInvestmentCash in handCash at bankOutstanding Tuition Fees

84000100000125000200000

50001500020000

549000 549000

•From the following Balance sheet and Receipts and Payments Account of Padmavati High School, Thane, prepare Income and Expenditure account for the year ended 31-03-2007 and balance sheet as on that date. (September 2008)Balance sheet as on 31st March, 2006

Receipts and Payment Account for the year ended 31st March, 2007

Receipts Amount(Rs.)

Payments Amount(Rs.)

To balance b/d Cash in handCash at bankTo Tuition FeesTo Term FeesTo Government Grant (salary) To Sundry receiptsTo sale of old newspapersTo interest on investmentsTo Donation of library

500015000

400000120000104500

11000500

10000150000

By Furniture purchased By SalariesBy rentBy Sundry expensesBy StationeryBy Annual gathering expensesBy repairs of buildingsBy InsuranceBy Balance c/dCash in HandCash at Bank

52000300000140000

270004900024000

3250020000

44500127000

816000 816000

Adjustments: •Tuition fees receivable Rs. 150000•Salary still payable Rs. 150000•Rent paid in advance Rs. 20000•Insurance premium is paid for one year ending 30-9-07•Depreciate furniture and library at 10% and computer laboratory at 20%. Depreciation is to be charged on the closing balance of assets.

Following is the Balance sheet and receipts and payments account of the Memorial Hospital, Sawantwadi. Prepare Income and expenditure account for the year ended on 31.3.2010 and the balance sheet as on that date. (March 2011)

Liabilities Amount(Rs.)

Assets Amount(Rs.)

Capital fundOutstandingSalariesMedical bill unpaid

10,04,000

220006000

Cash in handCash at bankLand and buildingFurnitureEquipments Outstanding subscriptions

600034000

80000070000

1200002000

1032000 1032000

Receipts Amount

(Rs.)

Payments Amount(Rs.)

To balance b/dCash in handCash at bankTo subscription (includes 2000

of L.Y.]To Sale of furniture (Book value Rs. 30000)To Donations (revenue)To Life membership fees

600034000

130000

20000

4400025000

By Salaries (including of the previous year)By MedicinesBy Equipments purchasedBy TaxesBy General expenses By Balance c/dCash in handCash at bank

110000

5200020000

30008600

1540050000

259000 259000

Consider the following adjustments. a.Outstanding subscription Rs. 12000.b.Capitalise the amount of membership fees. c.Prepaid taxes Rs. 500. d.Outstanding Salary Rs. 12000.e.Write off depreciation Rs. 20000 from Land and Building and Rs. 30000 from Equipments. f.Outstanding Medicine bill as on 1.4.09 is still due.

Receipt and payments account For the year ending 31.3.2010

From the following balance Sheet and Receipts and Payments account of Nanavati Hospital, Bombay, prepare Income and Expenditure account for the year ending on 31st March, 2007 and the Balance sheet as on that date. Balance Sheet as on 1st April, 2006Liabilities Amount Assets AmountSalaries UnpaidMedicines Bill UnpaidCapital Fund

20001500

383000

Cash SecuritiesFurnitureLand and BuildingsEquipmentsSubscription DueInterest Accrued

11000150000

4000200000

1500050001500

386500 386500Receipts and Payment Account for the year ended 31st March,

2007Receipts RS. Payments Rs.

To Cash balance b/fTo subscriptionTo Interest (Rs. 1500/- last year)To Donations(Revenue)To Life Membership Fee

1100030000

5000

430010000

By Furniture (purchased on 1-4-2006)By Salaries (including Rs. 2000/- of last year) By Equipment (purchased on 1-4-06)By Dispensary expensesBy MedicinesBy TaxesBy Cash balance c/f

1900

23000

750047005500

50017200

60300 60300

Adjustments. •Capitalise the amount of life membership fees. •Interest earned but not received Rs. 1,000/- •Subscription include Rs.1000/- for 2008 and outstanding subscription for 31st march, 2007 is 4,200•Unpaid salary for the year 2007 is Rs. 2500/-•Provide for depreciation on furniture 10%, Land and Building 5%, Equipments 20%.Prepaid taxes Rs. 100/-

The Balance Sheet as at 1st April, 2006 and the Receipts and Payments account for the year ended 31st March, 2007 of the Young Sports Club, Dadar are as under. Young Sports Club – Balance Sheet as on 1st April, 2006Liabilities Amoun

tAssets Amou

ntCapital FundOutstanding Expenses:Salaries 400Printing 300Income and Expenditure A/c

30000

700

23300

BuildingFurnitureEntrance Fee receivableSubscriptions Fee receivableSports Material & EquipmentsCash in HandCash at Bank

95005000200800

28000

42006300

54000 54000Young Sports Club, Dadar, Receipts and Payments A/c for the year ending 31st March, 2007Receipts Amoun

tPayments Amou

ntTo Opening Balance Cash at bank 4200 Cash in Hand 6300To SubscriptionsTo Entrance FeesTo Receipts from Cricket TournamentTo Interest on Bank A/c

10500180004000

14520300

By Cricket Tournament ExpenditureBy Printing & StationeryBy Salaries & HonorariumBy Repairs to BuildingBy Newspapers and PeriodicalsBy Advertising ExpensesBy Insurance By InvestmentsBy Closing BalanceCash in Hand 5280Cash in Bank 6450

16460

8601600500470

30040015000

11730

47320 47320

You are also given the following additional information. 1.Subscriptions of the amount of Rs. 800 were receivable as on 31st March, 2007 .Subscriptions Rs. 200 and Entrance Fees Rs. 300 were received in advance. Outstanding Expenses were: Salaries and Honorarium Rs. 100; Insurance Rs. 50; Cricket Tournament Expenses Rs. 250. You are required to prepare Income & Expenditure account for the year ending 31st March, 2007 and a Balance Sheet as on that date.