Not For Profit Organisation Solutions of TS Grewal

T. S.
Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

Statements of Not-for-Profit Organisations Page/Excercise 7.51
Solution PQ 1
In the books of Evergreen Club

Receipts and Payments Account
for the year ended March 31,2018
Dr. Cr.
Receipts Rs. Payments Rs.

To Balance b/d By Investments Purchased 5,00,000
-----Cash in Hand 50,000 By Rent Paid 50,000
---- Cash at Bank 3,40,000 3,90,000 By General Expenses 2,30,000
To Subscription Received 15,70,000 By Postage and Stationery 25,000
To Donation Received 2,80,000 By Newspapers and Magazines 87,000
To Sale of Old Newspapers 12,000 By Books Purchased 3,40,000
To Interest on Investments Received 50,000 By Sports Material Purchased 4,70,000
By Honorarium to Coacher 1,50,000
By Balance c/d
----Cash in Hand 30,000
----Cash at Bank (Balancing Fig.) 4,20,000 4,50,000
23,02,000 23,02,000
Solution PQ 2
Balance Sheet (Extract)
Liabilities Rs. Assets Rs.
Tournament Fund 50,000
Add : Tournament Receipts 20,000
Less : Tournament Expenses (15,000) 55,000
T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

Solution PQ 3
Case 1

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

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.
Solution PQ 4

Match Fund 80,000 Match Fund Investments 72,000
Add : Interest on Match Fund
Investment 2,880 Match Fund Bank Balance 3,500
Less : Match Expenses (5,500) 77,380
Solution PQ 5

Match Fund 24,000
Add : Donation For Match Fund 40,000
Add : Proceed from Sale of Tickets 15,000
Less: Match Expenses (Note) (79,000) NIL
Income and Expenditure Account (Extract)
Dr. Cr.
Expenditure Rs. Income Rs.
To Match Expenses (Note) 23,000
Note: The Total Match Fund is Rs.79,000 (i.e. Rs.24,000 + Rs.40,000 +Rs.15,000) whereas the total Match Expenses amounts to Rs.1,02,000. It
means that expenses of Rs.79,000 will be met through the Fund and the remaining expenses of Rs.23,000 (i.e., Rs.1,02,000 - Rs.79,000) will be
debited to the Income and Expenditure Account.
Solution PQ 6
Case 1

as on March 31,2018
Capital Fund 20,00,000 Pavilion Work - in - Progress 6,00,000
Case 2

as on March 31,2018
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

as on March 31,2018
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

Solution PQ 8
for the year ended March 31, 2018
Dr. Cr.
By Subscription 4,20,000
Less : Outstanding for 31st March 17 (14,000)
Add : Outstanding for 31st March 18 10,000 4,16,000
Solution PQ 9

Dr. Cr.
By Subscription
(450 Members × Rs.200 each) 90,000
Solution PQ 10
Statement of Subscription
Particulars Rs.
Subscription received during the year 2017 -18 4,09,000
Add : Outstanding for 2017 - 18 (Current year) 15,000
Less : Received for 2016 - 17 (Previous year) (5,000)
Add : Advance received in 2016 - 17(Previous year) 18,000
Less : Advance received for 2018 - 19 (Next year) (10,000)
Subscriptions to be credited to Income and Expenditure Account 4,27,000
Solution PQ 11
Particulars Rs.
Subscription received during the year 2017- 18 3,00,000
Less : Subscription-in-Arrears for 2016 - 17 (50,000)
Add : Subscription-in-Arrears for 2017 -18 25,000
Add : Subscription-in-Advance for 2017 - 18 30,000
Less : Subscription-in advance for 2018 -19 (70,000)
Subscriptions to be credited to Income and Expenditure Account 2,35,000
Solution 7
Case 1

Dr. Cr.
By Entrance fees 1,00,000
Case 2

Dr. Cr.
By Entrance fees
(1,00,000 - 25,000) 75,000

as on March 31, 2018
Capital Fund NIL
Entrance Fees 25,000 25,000

Solution PQ 12
Case 1
Particulars Rs.
Subscriptions received during the year 2017 - 18 2,50,000
Add : Subscriptions -in -arrears for the year 2017 - 18 6,000
Less : Subscriptions received in advance for the year 2018 - 19 (5,000)
Subscriptions Income for the year 2017 - 18 2,51,000
Case 2
Particulars Rs.
Subscriptions received during the year 2017 - 18 49,000
Add : Subscriptions collected for 2017 - 18 in 2016 - 17 3,000
Add : Subscriptions unpaid for the year 2017-18 2,000
Subscriptions Income for the year 2017 - 18 54,000
Case 3
Particulars Rs.
Less : Subscriptions outstanding in the beginning of 2017 - 18 (3,000)
Add : Subscriptions yet not collected for 2017 - 18 5,000
Case 4
Particulars Rs.
Less : Subscriptions Outstanding in the beginning of 2017 - 18 (5,000)
Add : Subscriptions yet not Collected for 2017 - 18 8,000
Less : Subscriptions for 2018 - 19 received in advance (2,000)
Case 5
Particulars Rs.
Less : Subscriptions Outstanding at the end of 2016 - 17 (5,000)
Add : Subscriptions received in advance on March 31, 2017 3,000
Less : Subscriptions received in advance on March 31, 2018 (4,000)
Add : Subscriptions not yet collected for 2017 - 18 6,000
Solution PQ 13
Particulars Rs.
Subscriptions received during the year 2017- 18 35,400
Less : Subscriptions-in-arrears received for 2016 -17 (400)
Less : Subscriptions received-in-advance for 2018-19 (1,200)
Less : Subscriptions received-in-advance for 2018-19 (300)
Add : Subscriptions Outstanding for 2017-18 400
Add : Subscriptions received in 2016 -17 for 2017 - 18 1,100
Subscriptions to be credited to Income and Expenditure Account 35,000
Solution PQ 14
Income and Expenditure Account

for the year ending March 31, 2018
Dr. Cr.
Amount Amount
Expenditure (Rs.) Income (Rs.)
Subscriptions 6,90,000
Balance Sheet
Amount Amount
Liabilities (Rs.) Assets (Rs.)
Subscriptions Received in Advance 25,000 Subscriptions Outstanding 54,000
Balance Sheet
Amount Amount
Subscriptions Received in Advance 41,000 Subscriptions Outstanding 65,000
Working Notes:
WN1: Calculation of Subscription Income (to be shown in Income and Expenditure Account)
Amount
Particulars (Rs.)
Subscription received during 2017-18 6,85,000
Subscription outstanding in 2017-18 54,000
Subscription outstanding in 2016-17 (65,000)
Subscription received in advance in 2017-18 (25,000)
Subscription received in advance in 2016-17 41,000
To be credited to Income and Expenditure Account 6,90,000

Solution PQ 15
For the year ended March 31, 2018
Dr. Cr.
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
as on March 31,2017
Liabilities Rs. Rs.
Subscriptions received in Advance 2,2,500 Subscriptions Outstanding 30,000

as on March 31,2018
Subscriptions received in Advance 13,500 Subscriptions Outstanding 37,500
Solution PQ 16
Subscriptions Account
Dr. Cr.
Particulars Rs. Particulars Rs.
To Income and Expenditure
(200 members × Rs.100 each) 2,00,000 By Bank (Subscriptions Received) 2,05,000
To Outstanding Subscriptions in the By Advance Subscriptions in the
beginning 30,000 beginning 14,000
By Outstanding Subscriptions at the
end
To Advance Subscriptions at the end 40,000 (Balancing Figure) 51,000
2,70,000 2,70,000
Solution PQ 17
Statement of Medicine Consumed
during the year 2017-18
Particulars Rs.
Medicine Purchased during the year 2017 - 18 60,80,700
Add : Stock in the beginning (as on April 01,2017) 1,75,750
Less : Stock at the end (as on March 31, 2018) (1,44,650)
Medicine to be debited to Income and Expenditure Account 61,11,800
Solution PQ 18
Statement of Medicine Consumed
For the year ending March 31, 2018
Particulars Rs.
Cash Purchases of medicine during the year 3,00,000
Add : Opening Stock of Medicines 1,00,000
Less : Closing Stock of Medicines (1,50,000)
Add : Closing Creditors of Medicines 1,30,000
Less : Opening Creditors of Medicines (90,000)
Medicines Consumed during the year 2017 - 18 2,90,000
Solution PQ 19
a.
Statement of Stationery Consumed
at the end of 31st March 2018
Particulars Rs.
Amount paid for Stationery during the year ended 31st March 2018 5,400
Less : Closing Stock ( as on 31st March 2018) (250)
Stationery to be posted to Income and Expenditure Account 5,150
b.

Particulars Rs.
Payment made for Stationery during the year ended 31st March 2018 5,400
Add : Opening Stock (as on 1st April 2017) 1,500
Less : Closing Stock (as on 31st March 2018) (250)
c.

Particulars Rs.
Amount paid for Stationery during the year ended 31st March 2018 5,400
Add : Opening Stock (as on 1st April 2017) 1,500
Less : Closing Stock (as on 31st March 2018) (250)
Less: Creditors for Stationery in the beginning (as on 1st April 2017) (1,000)
Solution PQ 20
Particulars Rs.
Amount paid for Stationery during the year 2017 - 18 1,40,000
Add : Opening Stock (as on April 01, 2017) 12,000
Less : Closing Stock (as on March 31, 2018) (23,200)
Add : Creditors at the end ( as on March 31, 2018) 24,000
Less : Creditors in the beginning (as on April 01, 2017) (25,600)
Rs.Stationery be shown in Income and Expenditure Account 1,27,200
Solution PQ 21
Statement of Stationery
for the year ended March 31,2018
Particulars Rs.
Amount paid for Stationery during the year 2017-18 1,08,000
Add : Opening Stock (as on April 01, 2017) 30,000
Less : Closing Stock (as on March 31, 2018) (5,000)
Less: Creditors in the beginning (as on April 01, 2017) (20,000)
Add: Creditors at the end (as on March 31, 2018) 13,000
Add: Advance in the beginning (as on April 01, 2017) 2,000
Less: Advance at the end (as on March 31, 2018) (3,000)
Amount to be posted to Income and Expenditure Account 1,25,000
Solution PQ 22
for the year ended March 31,2018 (Extract)
Dr. Cr.

To Sports : Material 1,40,000
Add : Opening Stock 8,000
Less: Closing Stock (22,000)
Less: Creditors in the beginning (6,000) 1,20,000
Balance Sheet
as on March 31,2018 (Extract)
Stock of Sport Materials 22,000
Solution PQ 23
for the year ended March 31,2018(Extract)
Dr. Cr.

To Medicine 1,50,000
Less : Creditors in the beginning (40,000)
Add : Creditors at the end 60,000 1,45,000
Balance Sheet

Creditors for Medicines 40,000 Stock of Medicines 50,000
Balance Sheet

Creditors for Medicines 60,000 Stock of Medicines 75,000
Solution PQ 24

Dr. Cr.
To Payment for Sports Material 71,000 By Profit on Sale of Sports Material 6,000
Add: Opening Stock 20,000 (26,000 - 20,000)
Less: Creditors in the beginning (7,000)
Add: Creditors at the end 15,000
Less: Book Value of Material Sold (20,000) 54,000

Creditors for Sport Materials 7,000 Stock of Sport Materials 20,000

Creditors for Sport Materials 15,000 Stock of Sport Materials 25,000
Solution PQ25
Extract of Income and Expenditure Account
for the year ended March 31,2018 (Extract)
Dr. Cr.
To Sports Material Consumed 92,800
Balance Sheet
as on March 2017 (Extract)
Creditors of Sports Materials 9,800 Stock of Sports Materials 6,200
Advance paid for Sports Materials 11,000
Balance Sheet
as on March 2018 (Extract)
Creditors of Sports Materials 7,200 Stock of Sports Materials 4,800
Advance paid for Sports Materials 19,000
Working Note:
Calculation of Sports Material Consume
Particulars Rs.
Sports Material 1,02,000
Less : Closing Stock (4,800)
Less: Opening Creditors (9,800)
Add : Closing Creditors 7,200
Less : Advance at the end (19,000)
Add : Advance in the beginning 11,000
92,800
Solution PQ 26
Furniture Account
Dr. Cr.
Date Particulars Rs. Date Particulars Rs.
2017 2017
By Depreciation A/c (Furniture I)
Apr 01 To Balance b/d Sep 30 (6 Months) 1,500
(Furniture I) 30,000
(Furniture II) 30,000 60,000 Sep 30 By Bank A/c (Sale) (Furniture I) 20,000
Sep 30 By Income and Expenditure A/c 8,500
(Loss on Sale)
2018
Mar 31 By Depreciation A/c (Furniture I) 3,000
Mar 31 By Balance c/d (30,000 - 3,000) 27,000
60,000 60,000

for the year ended March 31, 2018 (Extract)
Dr. Cr.

To Depreciation on Furniture
(1,500 + 3,000) 4,500
To Loss on Sale of Furniture 8,500
Working Note :
Calculation of Profit or Loss on Sale of Furniture
Particulars Rs.
Book Value of Furniture Sold as on April 01, 2017 30,000
Less : Depreciation (6 Months) (30,000 × 10% × 6/12) (1,500)
Book Value of Furniture as on Sep 30, 2017 28,500
Less : Sale Value (20,000)
Loss on Sale of Furniture 8,500

Solution PQ 27
Furniture Account
Dr. Cr.
Date Particulars Rs. Date Particulars Rs.
2017 2017
Apr 01 To Balance b/d Dec 31 By Depreciation A/c
(Furniture I) 2,00,000 (Furniture II) (9 Months) 1,500
(Furniture II) 20,000 2,20,000 Dec 31 By Bank A/c
Oct 01 To Bank A/c (Furniture II) (Sale) 14,800
(Furniture III) 1,50,000 Dec 31 By Income and Expenditure A/c
(Loss on Sale) 3,700
2018
Mar 31 By Depreciation A/c
(Furniture I) 20,000
(Furniture III) (6 Months) 7,500 27,500
Mar 31 By Balance c/d
(Furniture I) 1,80,000
(Furniture III) 1,42,500 3,22,500
3,70,000 3,70,000
Working Note :
Calculation of Profit or Loss on Sale of Furniture
Particulars Rs.
Book Value of Furniture I as on April 01, 2017 20,000
Less : Depreciation (9 months) (20,000 × 10% × 9/12) (1,500)
Book Value on December 31, 2017 18,500
Less: Loss on Sale of Furniture (18,500 × 20%) (3,700)
Sale value of Furniture 14,800
Solution PQ 28
Statement of Salaries
Particulars Rs.
Amount paid for Salaries 2,04,000
Add : Prepaid Salaries as on March 31, 2017 24,000
Less : Prepaid Salaries as on March 31, 2018 (12,000)
Less : Outstanding Salaries as on March 31, 2017 (18,000)
Add : Outstanding Salaries as on March 31, 2018 15,000
Salaries chargeable to Income and Expenditure Account 2,13,000
Solution PQ 29
Dr. Cr.
By Locker Rent Received 52,000
Add : Outstanding at the end 6,300
Add : Advance in the beginning 3,000
Less : Outstanding in the beginning (4,600)
Less : Advance at the end (4,000) 52,700
Solution PQ 30
for the year ended 31st March 2018
Dr. Cr.
To Salaries 4,80,000 By Subscriptions 9,00,000
To Rent 50,000 By Donation 10,000
To Stationery 20,000
To Loss on Sale of Old Furniture 10,000
To Surplus (Balancing Fig.) 3,50,000
9,10,000 9,10,000
Solution PQ 31
In the books of Delhi Nursing Society
Dr. Cr.
To Salaries of Nurses 65,600 By Subscriptions 1,11,500
To Board, Laundry and Domestic Help 38,000 Less : Donation for Building (10,000) 1,01,500
To Rent Rates and Taxes 20,000 By Fess from Non-members 27,000
To Expenses of Car 84,000 By Municipal Grant 1,00,000
To Drugs and Incidental 67,000 Interest 3,800
Add : Outstanding Expenses 12,800 79,800 By Deficit (Balancing Fig.) 55,100
2,87,400 2,87,400
Solution PQ 32
Books of You Bee Forty Club
Dr. Cr.
To Salaries and Wages 1,60,000 By Subscriptions 3,50,000
Add : Outstanding 40,000 2,00,000 Add : Outstanding for 2017-18 55,000 4,05,000
To Office Expenses 35,000 By Donations 50,000
To Telephone Charges 24,000 By Entrance Fees 80,000
To Electricity Charges 32,000
To Travelling Expenses 65,000
To Depreciation on Sports
Equipments (34,000 × 25%) 85,000
To Surplus (Balancing Fig.) 94,000
5,35,000 5,35,000

Solution PQ 33
Books of Jaipur Sports Club
Dr. Cr.
To Rent 60,000 By Entrance Fees (2017 - 18) 50,000
Less : For 2016 - 17 (15,000) 45,000 Subscription 2015 - 16 90,000
Add : Outstanding for 2017 -18
(90,000 × 10/9) 10,000 1,00,000
To Insurance Premium 60,000 By Donations 1,20,000
Less : For 2018 - 19 (15,000) 45,000 By Interest on Fixed Deposit 2,400
To Printing and Stationery 20,000 Add : Accrued Interest 2,400 4,800
To Loss on Sale of Sports Material
(1,200 - 500) 700 By Sale of Old Sports Materials 300
To Surplus (Balancing Fig.) 1,70,600 By Locker Rent 6,800
Less : For 2016 - 17 (600) 6,200
2,81,300 2,81,300
Working Note :
Calculation of Interest Accrued on investment
Interest on Investments for 6 Months (1,20,000 × 8% × 6/12) 4,800

Less : Interest Received (2,400)
Amount of Accrued Interest on Investments 2,400

Solution PQ 34
In the books of Delhi Football Club
Dr. Cr.
To Salaries 70,000 By Subscriptions (550 members ×Rs.100 each) 55,000
Add : Outstanding at the end 5,000 By Entrance Fees 50,000
Less : Outstanding in the beginning (10,000) 65,000 By General Donation (5,00,000 ×10%) 50,000
To Insurance 3,500 By Locker Rent 4,000
To Sundry Expenses 4,700 By Profit on Sale of Furniture(1,00,000 -80,000) 20,000
To Match Expenses 90,000 By Interest on Investment 10,000
Less : Match Fund (80,000) 10,000 Add : Accrued Interest 2,000 12,000
1,91,000 1,91,000
Calculation of Interest Accrued on Investment
Interest on Investment for 9 Months (1,60,000 × 10% × 9/12) 12,000

Less : Interest Received (10,000)
Amount of Accrued Interest on Investment 2,000
Solution PQ 35

Dr. Cr.
Amount Amount
Interest on General Fund Investments 80,000
Balance Sheet
Amount Amount
Sports Fund 4,00,000 Sports Fund Investment 3,50,000
General Fund 8,00,000 General Fund Investment 8,00,000
Working Notes:
WN1: Calculation of Sports Fund Balance
Amount
Particulars (Rs.)
Sports Fund as on April 01, 2017 3,50,000
Interest on Sports Fund Investments 40,000
Donation for Sports Fund 1,50,000
Sports Prizes Awarded (1,00,000)
Expenses on Sports Events (40,000)
Balance of Sports Fund 4,00,000

Solution PQ 36
Books of Royal Club
Dr. Cr.
To Rent and Taxes 16,800 By Entrance Fees 25,500
Less : Outstanding Rent in the beginning (6,000) By Subscriptions 1,60,000
Add: Outstanding Rent at the end 6,000 16,800 Less : Outstanding in the beginning (3,500)
Add : Outstanding at the end 4,500 1,61,000
To Wages 24,500 By Donations 16,500
To Lighting Charge 7,200 By Profit on Entertainment 5,600
By Interest Accrued on Fixed Deposits
To Lecturer's Fee 43,500 (80,000 × 3% × 6/12) 1,200
To Office Expenses 45,000
To Depreciation on :
----Books 11,300
----Furniture 5,000 16,300
2,09,800 2,09,800
Balance Sheet
as on 01st April 2017
Outstanding Rent 6,000 Books 2,00,000
Capital Fund (Balancing Fig.) 3,14,400 Furniture 85,000
Subscriptions Outstanding 3,500
Cash and Bank 31,900
3,20,400 3,20,400
Balance Sheet
as on 31st March 2018
Rent Outstanding 6,000 Subscriptions Outstanding 4,500
Capital Fund 3,14,400 Books 2,00,000
Add : Purchases
Add : Life Membership Fees 25,000 21,300
Add : Surplus 56,500 3,95,900 Less : Deprecation (11,300) 2,10,000
Furniture 85000
Less : Depreciation (5,000) 80,000
Fixed Deposits 80,000
Add : Accrued interest 1,200 81,200
Cash at Bank 24,200
Cash in hand 2,000
4,01,900 4,01,900
Solution PQ 37
In the books of New City Club
Dr. Cr.
To Salaries 28,000 By Subscription (50 members ×Rs.500 each) 25,000
Add : Outstanding for 2018 2,000 By Rent Received from the use of hall 14,000
Less: Outstanding for 2017 (6,000) 24,000 By Profit from Entertainment 8,000
To General Expenses 6,000 By Sale of Old Newspapers 2,000
To Newspaper 8,000
To Depreciation on Furniture (20,000 × 10%) 2,000
49,000 49,000
Balance Sheet
Salaries Outstanding 6,000 Subscriptions Outstanding 6,000
Capital Fund 2,47,000 Building 2,00,000
(Balancing Fig.) Furniture 20,000
Books 20,000
Cash at Bank 7,000
2,53,000 2,53,000
Balance Sheet
Advance Subscription 4,000 Subscription Outstanding
Salaries Outstanding 2,000 For 2017-18 (25,000 - 20,000) 5,000
Capital Fund 2,47,000 For 2016-17 (6,000 - 5,000) 1,000 6,000
Add : Surplus 5,000 2,52,000 Building 2,00,000
Furniture 20,000
Less : 10 % Depreciation (2,000) 18,000
Books 20,000
Add : Purchases 10,000 30,000
Cash and Bank 4,000
2,58,000 2,58,000

Solution PQ 38

Dr. Cr.
Amount Amount
Electricity 30,000 Subscription 2,65,000
Newspaper 18,500 Add: Current O/s 7,000 2,72,000
Loss on Sale of Furniture 13,000 Government Grant 1,20,000
Salary 36,000 Sale of Old News Paper 12,500
Add: Outstanding 6,000 42,000 Interest on Fixed Deposit 9,000
Rent 65,000 (18,000 @ 10% for 6 months)
Less: Prepaid 5,000 60,000
General Expenses 32,000
Postage Charges 3,000
Surplus 2,15,000
4,13,500 4,13,500
Balance Sheet
Amount Amount
Capital Fund Books 50,000
Opening Balance 3,85,500 Add: Purchases 70,000 1,20,000
Add: Surplus 2,15,000 6,00,500 Subscriptions Outstanding 15,000
Subscription Received in Advance 5,000 Furniture 1,20,000
Salary Outstanding 6,000 Add: Purchases 1,05,000
Less: Sale 50,000 1,75,000
Fixed Deposit 1,80,000
Add: Accrued Interest 4,500 1,84,500
Prepaid Rent 5,000
Cash 30,000
Bank 82,000
6,11,500 6,11,500
Working Notes
WN1: Ascertainment of Capital Fund
Balance Sheet
Amount Amount
Capital Fund 3,85,500 Subscriptions Outstanding 20,000
Books 50,000
Furniture 1,20,000
Cash 40,000
Bank 1,55,500
3,85,500 3,85,500
Solution PQ 39

Dr. Cr
To Loss on Sale of Sports Material
(10,000 - 6,000) 4,000 By Subscription 1,81,000
To Wages and Salaries 60,000 Add: Subscriptions Outstanding for 2017-18 5,500
Add: Outstanding in 2017-18 6,000 Less: Subscription Outstanding for 2016-17 (8,000)
Less: Outstanding in 2016-17 (11,000) 55,000 Add: Advance received for 2017-18 6,000
To Stationery 15,000 Less: Advance Received for 2018-19 (4,000) 1,80,500
To Audit Fee 2,000 By Sale of Old Materials 1,500
To Expenses on Terms 65,000 By Entrance Fees 2,000
To Depreciation on Billiards Tables
(60,000×10%) 6,000 By Interest accrued on Investments (40,000×5%×6/12) 1,000
To Consumption of Sports Equipments
(50,000 + 20,000 - 10,000 - 45,000) 15,000
To Upkeep of Grounds 10,000
1,85,000 1,85,000
Balance Sheet
Liabilities Rs. Assets `
Capital Fund 2,00,000 Subscriptions Outstanding 5,500
Add: Surplus 13,000 Sports Equipment 50,000
Add: Life Membership Fees 50,000 2,63,000 Add: Purchases 20,000
Less: Book Value of Sold
Tournament Fund 60,000 Equipment (10,000)
Add: Donations 20,000 80,000 60,000
Salaries Unpaid 6,000 Less: Consumption (15,000) 45,000
Subscriptions in Advance 4,000 Grounds 1,20,000
Billiards Tables 60,000
Less: 10% Depreciation (6,000) 54,000
Cash and Bank Balances 87,500
Investments 40,000
Add: Accrued interest 1,000 41,000
3,53,000 3,53,000

Solution PQ 40
In the books of Ganesh Cricket Club
Dr. Cr.
To Upkeep of Fields 20,000 By Members' Subscriptions 50,000
To Rates and Insurance 2,000 Add: Outstanding for 2017-18 7,500
To Telephone 500 Less: Outstanding for 2016-17 (5,000) 52,500
To Printing and Stationery Consumed 750 By Admission Fee 3,000
To General Charges 500 By Sale of Old Bats, etc. 500
To Secretary's Honorarium 2,000 By Hire of Ground 3,000
To Depreciation on Bats, Balls, etc.
(22,000×50%) 11,000 By Donations 1,00,000
To Surplus (Balance Fig.) 1,22,250
1,59,000 1,59,000
Balance Sheet
Capital Fund (Balancing Fig.) 52,000 Stock of Bats and Balls 15,000
Printing and Stationery 2,000
Subscriptions Outstanding 5,000
Cash at Bank 30,000
52,000 52,000
Balance Sheet
Subscription for Tournament 10,000 Subscriptions 7,500
Less: Tournament Expenses (7,000) 3,000 Outstanding Bats and Balls 15,000
Capital Fund 52,000 Add: Purchases 7,000
Add: Surplus 1,22,250 1,74,250 22,000
Less: 50% Written-off (11,000) 11,000
Printing and Stationery 2,000
Add: Purchases 1,000
3,000
Less: 25% Written-off (750) 2,250
Bank 1,56,500
1,77,250 1,77,250
Solution PQ 41
In the books of Mumbai Club

Dr. Cr.
To Salary 20,000 By Subscriptions 1,20,000
To Repair Expenses 5,000 Add: Outstanding 9,000
To Miscellaneous Expenses 5,000 Less: Advance (3,500) 1,25,500
Less: Prepaid (900) 4,100 By Entrance Fee 10,000
To Insurance Premium 2,000 By Interest on Investment 1,000
Add: Outstanding 400 2,400 Add: Accrued interest (60,000×8%×5/12) 2,000 3,000
To Paper, Ink, etc. 1,500 By Donation 50,000
To Surplus (Balancing Figure) 1,66,500 By Interest received from Bank 4,000
By Sale of Old Newspapers 1,500
By Receipt from Sale of Drama Tickets 10,500
Less: Drama Expenses (5,000) 5,500
1,99,500 1,99,500
Balance Sheet
Creditors for Billiard Table 80,000 Billiard Table 3,00,000
Capital Fund (Balancing Fig.) 3,60,000 Cash in hand 40,000
Cash at bank 1,00,000
4,40,000 4,40,000
Balance Sheet
Advance Subscriptions 3,500 Subscriptions Outstanding 9,000
Insurance Premium Outstanding 400 Prepaid Miscellaneous Expenses 900
Capital Fund 3,60,000 Investments 60,000
Add: Surplus 1,66,500 5,26,500 Add: Accrued Interest 2,000 62,000
Billiard Table 3,00,000
Furniture 60,000
Cash in hand 26,500
Cash at bank 72,000
5,30,400 5,30,400

Solution PQ 42

Dr. Cr.
Amount Amount
Charity 1,15,000 Subscription 4,28,000
Advertisement 45,000 Donation 90,000
Add: Outstanding 10,000 55,000 Sale of Old Newspapers 2,000
Insurance 20,000 Interest on Investments 56,000
Less: Prepaid 5,000 15,000 (45,000 + 11,000)
Salary 60,000
Add: Outstanding 9,000 69,000
Rent 32,000
Add: Outstanding 6,000 38,000
Printing 6,000
Postage 3,000
Surplus 2,75,000
5,76,000 5,76,000
Balance Sheet
Amount Amount
Capital Fund Cash 99,000
Opening Balance 2,41,000 Bank 1,60,000
Add: Legacy 1,80,000 Prepaid Insurance 5,000
Add: Surplus 2,75,000 6,96,000 Furniture 2,16,000
Rent Outstanding 6,000 Investment 2,30,000
7,21,000 7,21,000
Working Notes
Balance Sheet
Amount Amount
Capital Fund 2,41,000 Cash 1,15,000
Bank 1,26,000
2,41,000 2,41,000
Solution PQ 43
In the books of Mayur Club

Dr. Cr.
To Municipal Taxes 4,000 By Subscription (500members × Rs.500) 2,50,000
Add: Prepaid in 2016-17 1,000 By Interest Accrued on Investment 5,000
Less: Prepaid in 2017-18 (1,000) 4,000

To Salaries 60,000 By Profit from Drama:
Add: Outstanding 5,000 65,000 Proceeds 95,000
To Expenses 7,500 Less: Drama Expenses (45,000) 50,000
To Newspapers 15,000 By Sale of Waste Paper 4,500
To Charity 35,000 By Donations 54,000
3,63,500 3,63,500
Balance Sheet
Subscription Outstanding (4,000+5,000) 9,000
Capital Fund (Balancing Fig.) 6,12,500 Municipal Taxes Prepaid 1,000
Building 5,00,000
Cash and Bank 1,02,500
6,12,500 6,12,500
Balance Sheet
Advance Subscriptions 6,000 Subscriptions Outstanding
Salaries Outstanding 5,000 2017-18 (2,50,000-2,05,000) 4,5000
Capital Fund 6,12,500 2016-17 5,000 50,000
Add: Surplus 2,22,500 8,35,000 Prepaid Municipal Taxes 1,000
Building 5,00,000
Investments 2,00,000
Cash at Bank 90,000
8,46,000 8,46,000

Solution PQ 44
In the books of Delhi Sports Club

Dr. Cr.
To Rent 16,800 By Entrance Fees 5,500
Add: Advance in the beginning 4,200 By Subscriptions 1,80,000
Less: Advance at the end (4,200) 16,800 Add: Arrears at the end 5,500
To Wages 24,500 Less: Arrears in the beginning (3,500) 1,82,000
To Lighting Charges 7,200 By Donations 16,500
To Office Expenses 45,000 By Interest on Deposits 2,400
To Depreciation on: Add: Accrued Interest 2,400 4,800
----Furniture 8,500 By Profit from Tournament:
----Books 22,480 30,980 ----Proceeds 23,200
To Surplus (Balancing Fig.) 87,320 ----Less: Expenses (20,200) 3,000
2,11,800 2,11,800
Balance Sheet
Capital Fund (Balancing Fig.) 3,24,600 Advance Rent 4,200
Subscriptions-in-Arrears 3,500
Books 2,00,000
Furniture 85,000
3,24,600 3,24,600
Balance Sheet
Subscription-in-Arrears 5,500
Capital Fund 3,24,600 Advance Rent 4,200
Add: Surplus 87,320 Books 2,00,000
Add: Life Membership 25,000 4,36,920 Add: Purchase 24,800
2,24,800
Less: 10% Depreciation (22,480) 2,02,320
Furniture 85,000
Less: 10% Depreciation (8,500) 76,500
8% Fixed Deposit 1,20,000
4,36,920 4,36,920
Working Note:
Calculation of Interest Accrued on Fixed Deposits

Interest on Fixed Deposits (1,20,000 × 8% × 6/12) 4,800
Less: Interest Received (2,400)
Amount of Interest Accrued on Fixed Deposits 2,400
Solution PQ 45
Books of Imran Khan Club

for the year ended 31st December 2015
Dr. Cr.
To Salaries 3,30,000 By Subscription 6,60,000
Add: Outstanding 30,000 3,60,000 Add: Advance in the beginning 20,000 6,80,000
To Sports Materials Consumed 50,000 By Interest on Investments 40,000
To Surplus (excess of income over expenditure) 3,10,000
7,20,000 7,20,000
Balance Sheet
as on 31st December 2015
Outstanding Salaries 30,000 Investments 5,00,000
Capital Fund 9,70,000 Stock of sports Material 6,50,000
Add: Surplus 3,10,000 12,80,000 Cash 1,60,000
13,10,000 13,10,000
Working Notes:
1.
Calculation of amount of Sports Material Consumed

Sports Material Purchased 4,00,000
Add: Opening Stock of Sports Material 3,00,000
Less: Closing Stock of Sports Material (6,50,000)
Amount of Sports Material Consumed 50,000
2.
Calculation of Capital Fund
Balance Sheet
as on 1st January 2015
Advance Subscription 20,000 Investments 5,00,000
Capital Fund (Balancing Fig.) 9,70,000 Stock of sports Material 3,00,000
Cash 1,90,000
9,90,000 9,90,000
3.
Calculation of Outstanding Salaries
Outstanding Salaries = 3,30,000 = Rs.30,000
4.
Calculation of Amount of Investments

Solution PQ 46
Books of RamaKrishna Mission Charitable Hospital
Dr. Cr.
To Medicine 3,05,900 By Subscription 4,79,960
Add: Opening Stock 88,100 Add: Due for 2017-18 2,800
Less: Closing Stock (97,400) 2,96,600 Less: Due for 2016-17 (2,400)
To Doctor's Honorarium 90,000 Less: Advance for 2018-19 (1,000)
To Salaries 2,75,000 Add: Advance for 2017-18 640 4,80,000
To Petty Expenses 4,610 By Donations 1,45,000
To Expenses on Charity Show 7,500 By Interest on Investments 70,000
To Depreciation on Equipments 46,000 By Proceeds from Charity Show 1,04,500
To Depreciation on Building 20,000
7,99,500 7,99,500
Balance Sheet
Advance Subscription 640 Subscription Due 2,400
Capital Fund (Balancing Fig.) 17,73,160 Stock of Medicines 88,100
Equipments 2,12,000
Building 4,00,000
Cash in Hand 71,300
17,73,800 17,73,800
Balance Sheet
Advance Subscription 1,000 Subscription Due 2, 800
Capital Fund 17,73,160 Stock of Medicines 97,400
Add: Surplus 59,790 18,32,950 Equipments 2,12,000
Add: Purchase 1,50,000
3,62,000
Less: Depreciation (46,000) 3,16,000
Building 4,00,000
Less: Depreciation (20,000) 3,80,000
Cash in Hand 37,750
7% Investments 10,00,000
18,33,950 18,33,950
Working Note:
Calculation of Amount of Investments
Solution PQ 47

Dr. Cr.
Amount
Expenditure (Rs.) Income Amount (Rs.)
Petty Expenses 5,000 Government Grant 1,50,000
Electricity Expenses 95,500 Donation 30,000
Add: Outstanding 12,500 1,08,000 Sale of Old Newspapers 3,000
Insurance 75,000 Proceeds of Charity Show (Net) 36,000
Add: Previous 7,000 Sundries Income 4,000
Less: Current 3,000 79,000 Interest on Investments 70,000
Salary 1,25,000 Subscription 8,17,500
Add: Current O/s 18,000 Add: Current O/s 25,000
Less: Previous O/s 12,000 1,31,000 Add: Previous Adv. 17,500
Stationery 32,500 Less: Previous O/s 37,500
Lectures Fees 1,65,000 Less: Current Adv. 10,000 8,12,500
Honorarium to Secretary 1,20,000
Newspaper 10,000
Depreciation on Equipment 54,000
Depreciation on Building 60,000
Surplus 3,41,000
11,05,500 11,05,500
Balance Sheet
Amount
Liabilities (Rs.) Assets Amount (Rs.)
Capital Fund Cash 20,500
Opening Balance 22,66,000 Bank 2,50,000
Add: Surplus 3,41,000 26,07,000 Investments 7,00,000
Outstanding Salary 18,000 Equipment 2,56,000
Subscription Received in Advance 10,000 Add: Purchases 3,00,000
Electricity Charges Outstanding 12,500 Less: Depreciation 54,000 5,02,000
Prepaid Insurance 3,000
Subscription Outstanding 25,000
Building 12,00,000
Less: Depreciation 60,000 11,40,000
Stock of Stationery 7,000
26,47,500 26,47,500
Working Notes
Balance Sheet
Amount Amount
Outstanding Salary 12,000 Prepaid Insurance 7,000
Subscription Received in Advance 17,500 Subscription Outstanding 37,500
Capital Fund 22,66,000 Stock of Stationery 22,500
Equipment 2,56,000
Building 12,00,000
Cash 22,500
Bank 50,000
22,95,500 22,95,500
Solution PQ 48

Dr. Cr.
Amount Amount
Postage 1,000 Entrance Fee 3,200
Add: Outstanding 300 Locker Rent 1,200
Less: Closing 200 1,100 Profit from Entertainment 3,000
Rent 18,000 Subscription 40,000
Add: Current O/s 1,500 Add: Current O/s 2,300
Less: Previous O/s 1,500 18,000 Less: Previous O/s 1,200 41,100
Interest 2,000 Deficit 6,100
Salaries 24,000
Depreciation on Furniture 2,500
Wages 7,000
54,600 54,600
Balance Sheet
Amount Amount
Outstanding Rent 1,500 Cash in Hand 4,000
10% Loan 20,000 Billiards Table 14,000
Donation for Building 23,000 Subscription Outstanding 2,300
Life Membership Fees 7,000 Stock of Postage Stamps 200
Furniture 15,000
Add: Purchases 10,000
Less: Depreciation 2,500 22,500
Capital Fund
Opening Balance 2,400
Add: Deficit 6,100
8,500
51,500 51,500
Working Notes
Balance Sheet
Amount Amount
Outstanding Rent 1,500 Furniture 15,000
10% Loan 20,000 Subscription Outstanding 1,200
Stock of Stationery 300
Cash in Hand 2,600
Capital Fund (Deficit) 2,400
21,500 21,500

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T. S.

Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

In the books of Evergreen Club

Receipts Rs. Payments Rs.

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

Balance Sheet (Extract)

Balance Sheet (Extract)

Balance Sheet (Extract)

Balance Sheet (Extract)

Balance Sheet (Extract)

Balance Sheet (Extract)

Balance Sheet (Extract)

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

Income and Expenditure Account (Extract)

Income and Expenditure Account (Extract)

Income and Expenditure Account (Extract)

Balance Sheet (Extract)

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

Income and Expenditure Account

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

Balance Sheet (Extract)

Medicine to be debited to Income and Expenditure Account 61,11,800

Statement of Stationery Consumed

Statement of Stationery Consumed

Expenditure Rs. Income Rs.

Expenditure Rs. Income Rs.

Liabilities Rs. Assets Rs.

Liabilities Rs. Assets Rs.

Income and Expenditure Account (Extract)

Balance Sheet (Extract)

Balance Sheet (Extract)

Advance paid for Sports Materials 11,000

Income and Expenditure Account

Expenditure Rs. Income Rs.

To Loss on Sale of Furniture 8,500

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

Interest on Investments for 6 Months (1,20,000 × 8% × 6/12) 4,800

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

Calculation of Interest Accrued on Investment

Interest on Investment for 9 Months (1,60,000 × 10% × 9/12) 12,000

Income and Expenditure Account

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

Income and Expenditure Account

Income and Expenditure Account

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

In the books of Mumbai Club

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

Income and Expenditure Account

In the books of Mayur Club

Less: Prepaid in 2017-18 (1,000) 4,000

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial

In the books of Delhi Sports Club

Calculation of Interest Accrued on Fixed Deposits

Books of Imran Khan Club

Calculation of amount of Sports Material Consumed

Outstanding Salaries = 3,30,000 = Rs.30,000

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 7 - Financial