Accounting for Not-for-Profit Organisation (NPO)
Question 1:
From the following particulars relating to A Ltd., prepare a Receipt and Payment account for the year ending March 31, 2025.
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| Particulars | Amount (₹) | Particulars | Amount (₹) |
| Opening Cash Balance | 1,000 | Sale of old sports materials | 1,200 |
| Opening Bank Balance | 7,200 | Donation received for pavilion | 4,600 |
| Subscriptions collected for : 2023-24 ₹ 400 2024-25 ₹ 7,600 2025-26 ₹ 900 | 8,900 | Rent paid | 3,000 |
| Sale of refreshments | 1,000 | Sports materials purchases | 4,800 |
| Entrance fees received | 1,000 | Purchase of refreshments | 600 |
| Expenses for maintenance of tennis court | 2,000 | ||
| Salary paid | 2,500 | ||
| Tournament expenses | 2,400 | ||
| Furniture purchased | 1,500 | ||
| Office expenses | 1,200 | ||
| Closing cash in hand | 400 |
[Answer: Closing Bank Balance = ₹6,500.]
Question 2:
From the Receipt and Payment Account given below, prepare the Income and Expenditure Account of Clean Delhi Club for the year ended March 31, 2024.
Receipt and Payment Account for the year ending March 31, 2024
| Receipts | Amount (₹) | Payments | Amount (₹) |
| Balance b/d (cash in hand) | 3,200 | Salary | 1,500 |
| Subscriptions | 22,500 | Rent | 800 |
| Entrance Fees | 1,250 | Electricity | 3,500 |
| Donations | 2,500 | Taxes | 1,700 |
| Rent of hall | 750 | Printing and Stationery | 380 |
| Salel of Investments | 3,000 | Sundry Expenses | 920 |
| Books purchased | 7,500 | ||
| Govt. bonds purchased | 10,000 | ||
| Fixed Deposit with Bank (on 31.03.2024) | 5,000 | ||
| Balance c/d \(\;\) Cash in hand \(\;\) 400 \(\;\) Cash at bank \(\;\) 1,500 | 1,900 | ||
| 33,200 | 33,200 |
[Excess of Income over Expenditure (Surplus) = ₹18,200.]
Question 3:
From the following extracts of Receipts and Payments Account and the additional information, you are required to calculate the Income from Subscription for the year ending 31st March 2025 and show them in Income and Expenditure Account and the Balance Sheet:
Receipts and Payments Account
for the year ending 31st March 2025
To Subscriptions : \(\quad\) 2023-24 \(\quad\) 5,000
\(\quad \quad \quad\quad\quad\quad\quad\quad\) 2024-25 \(\quad\) 30,000
\(\quad \quad \quad\quad\quad\quad\quad\quad\) 2025-26 \(\quad\) 6,000\(\quad\quad\quad\) 41,000
Additional Information:
(i) Subscription outstanding on March 31, 2024 \(\quad\) 6,000
(ii) Subscription outstanding on March 31, 2025\(\quad\) 5,000
(iii) Subscription received in advance on March 31, 2024 \(\quad\) 6,000
[Answer: 40,000]
Question 4:
How will you deal with the following in the Income and Expenditure Account and Balance Sheet of a Club as on 31st March, 2025:
Subscription received during 2024-25 \(\quad\quad\) ₹25,000
Subscription outstanding on 31.3.2024 \(\quad\quad\) ₹ 5,000
Subscription outstanding on 31.3.2025 \(\quad\quad\) ₹ 10,000
Subscription received in Advance as on 31.3.2024 \(\quad\quad\) ₹ 7,500
Subscription received in Advance as on 31.3.2025\(\quad\quad\) ₹ 5,000
Question 5:
There are 450 members in a club each paying an annual subscription of ₹ 50, ₹ 500 were in arrears as on 31st December, 2025. Subscription received during 2026 were ₹ 22,300 including ₹ 450 for 2025 and ₹ 750 for the year 2026.
Calculate the amount of subscription in arrears as on 31st December, 2026 by preparing Subscription Account.
Question 6:
Following is the Receipt and Payment Account of Vani Trust:
Receipt and Payment Account
for the year ending December 31, 2025
| Receipts | ₹ | Payments | ₹ |
|---|---|---|---|
| Cash in Hand | 14,000 | Rent | 6,000 |
| Cash at Bank | 60,000 | Salary | 12,000 |
| Subscription: | Postage | 300 | |
| • 2024 | 5,000 | Electricity Charges | 6,000 |
| • 2025 | 83,000 | Purchase of Furniture | 20,000 |
| • 2026 | 3,000 | Books | 3,000 |
| Sale of Investment | 90,000 | Defence Bonds | 1,50,000 |
| Interest on Investment | 2,000 | Help to Needy Students | 22,000 |
| Sale of Furniture (Book value of furniture sold ₹ 3,000) | 3,200 | Cash in Hand | 10,900 |
| Cash at Bank | 30,000 | ||
| Total | 2,60,200 | Total | 2,60,200 |
Additional Adjustments
Prepare Income and Expenditure Account for the year ended December 31, 2025 and a Balance Sheet as on that date after considering the following adjustments:
- Subscription for 2025 still owing were ₹ 7,000.
- Interest due on defence bonds was ₹ 7,000.
- Rent still owing was ₹ 1,000.
- The book value of investment sold was ₹ 80,000.
- ₹ 30,000 of the investment were still in hand.
- Subscription received in 2025 included ₹ 4,000 for a life member.
- The total furniture on January 1, 2025 was worth ₹ 12,000.
- Salary paid for the year 2026 is ₹ 2,000.
Question 7:
From the following Receipt and Payment Account of Asmi Club, prepare Income and Expenditure Account and Balance Sheet for the year ending December 31, 2025.
Receipt and Payment Account
for the year ending December 31, 2025
| Receipts | Rs. | Payments | Rs. |
|---|---|---|---|
| Cash in Hand as on 1.1.25 | 6,800 | Salaries | 24,000 |
| Subscription | 60,200 | Travelling Expenses | 6,000 |
| Donation | 3,000 | Stationery | 2,300 |
| Sale of Furniture (Book Value Rs. 6,000) | 4,000 | Rent | 16,000 |
| Entrance Fee | 800 | Repair | 700 |
| Life Membership Fee | 7,000 | Books Purchased | 6,000 |
| Interest on Investment @5% for full year | 5,000 | Building Purchased | 30,000 |
| Cash in Hand as on 31.12.2025 | 1,800 | ||
| Total | 86,800 | Total | 86,800 |
Additional Information :
| As on 1.01.2025 | As on 31.12.2025 | |
|---|---|---|
| (i) Subscription Received in Advance | 1,000 | 3,200 |
| (ii) Outstanding Subscription | 2,000 | 3,700 |
| (iii) Stock of Stationery | 1,200 | 800 |
| (iv) Books | 13,500 | 16,500 |
| (v) Furniture | 16,000 | 8,000 |
| (vi) Outstanding Rent | 1,000 | 2,000 |
