NPO QUESTION WITH SOLUTION

Following are the brief particulars of cash transactions of Geeta Pustakalaya Allahabad for the year ended 31^st December 2002.

Receipts	Rs	Payments	Rs.
To balance b/f	1319	By rent and rates	168
To entrance fees	255	By wages	245
To subscriptions	1600	By lighting	72
To donation	165	By lecturers fee	435
To life membership fee	250	By books	213
To interest	14	By office expenses	450
To profit on entertainment	42	By 3% fixed deposits (1.7.2002)	800
		By bank balance	242
		By cash in hand	1020
	3,645		3,645

Library has books worth Rs 2,000 and furniture worth Rs 850 in the beginning of year. Outstanding subscription was Rs 35 in the beginning of year and Rs 45 at the end of year. Outstanding rent was Rs 60 in the beginning as well as at the end of year. Charge depreciation Rs 50 on Furniture and Rs 113 on Books.

Required: from the above particulars prepare Income and Expenditure Account and Balance Sheet of Pustakalaya as on 31^st December 2002.

Solution 5

Income and expenditure account

For the year ending 31^st Dec. 2002

Particulars		Rs	Particulars	Rs.
To rent Add outstanding	168 60		By subscription Add: outstanding	1600 45
Less: of previous year	60	168	Less: of previous year	35	1610
To wages		245	By interest	14
To lighting		72	Add: Accrued int.	12	26
To lecture fee		435	By profit on entertainment		42
To office expenses		450	By entrance fees		255
Book	113		By donations		165
Furniture	50	163
To excess of income over expenditure		565
		2,098			2,098

Balance sheet as at 31^st Dec. 2002

Liabilities		Rs	Assetss		Rs
Capital Fund	4144		Cash in hand		1020
Add: Surplus of this year	565	4709	Cash at bank		242
Life membership fees		250	Fixed deposit		800
Outstanding rent		60	Outstanding subscriptions		45
			Books		2100
			Furniture		800
			Accrued interest		12
		5,019			5,019

Working note calculation of opening capital fund 

Balance sheet as at 31^st Dec. 2001

Liabilities	Rs	Assetss	Rs
Outstanding rent	60	Cash in hand	1319
Capital fund (balancing figure)	4144	Outstanding subscription	35
		Book	2000
		Furniture	850
	4,204		4,204