Page 13 - DEBKVOL-1

Chapter 1 Financial Statements of Not-for-Profit Organisations 1.3
.

INCOME AND EXPENDITURE ACCOUNT (AN EXTRACT)
Dr. for the year ended 31st March, 2012 Cr.
Expenditure ` Income `
To Sports Materials Consumed:
Opening Stock 3,000
Add: Purchase 10,100
13,100
Less: Closing Stock 500 12,600
Illustration 2.
From the following information of a Not-for-Profit organisation, show the Sports Material items
in the Income and Expenditure Account for the year ending 31st March, 2009:
Particulars As at 31st March, 2008 (`) As at 31st March, 2009 (`)
Stock for Sports Material 2,200 5,800
Creditors for Sports Material 7,800 9,200
Advance to Suppliers for Sports Material 15,000 25,000
Payment to suppliers for the sports material during the year was ` 1,20,000, there were no cash
purchases made. (KVS 2015)
Solution:
AN EXTRACT OF INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2009 Cr.
Expenditure ` Income `
To Sports Material Consumed 1,07,800
Working Notes:
1. Dr. CREDITORS FOR SPORTS MATERIAL ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d (Advance) 15,000 By Balance b/d 7,800
To Bank A/c 1,20,000 By Stock of Sports Material A/c 1,11,400
To Balance c/d 9,200 (Credit Purchase) (Bal. Fig.)
By Balance c/d (Advance) 25,000
1,44,200 1,44,200

2. Dr. STOCK OF SPORTS MATERIAL ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 2,200 By Income and Expenditure A/c (Bal. Fig.) 1,07,800
To Creditors for Sports Material A/c (Transfer) 1,11,400 (Sports Material Consumed)
By Balance c/d 5,800
1,13,600 1,13,600
Illustration 3.
Show how are the following items dealt with while preparing the final accounts for the year
ending on 31st March, 2019 in each of the following alternative cases:
Case 1. Prize awarded ` 12,000.
Case 2. Prize awarded ` 12,000, Prize Fund as at 31st March, 2018 ` 25,000.
Case 3. Prize awarded ` 12,000, Prize Fund as at 31st March, 2018 ` 25,000. Donation received
for prizes during the year 2018–19 ` 10,000, Prize Fund Investment at 31st March, 2018
` 25,000, interest received on 10% Prize Fund Investment ` 2,500. (CBSE 2007, Modified)