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Non-Trading Organisation 23.19

3. Calculation of Capital Fund as at 31st March, 2019:

BALANCE SHEET
as at 31st March, 2019 (Last Year)
Liabilities ` Assets `
Subscriptions Received in Advance 2,000 Cash 20,000
Outstanding Salary of Staff 10,000 Bank 1,20,000
Building Fund* 2,00,000 Subscriptions Due 10,000
Capital Fund (Balancing Figure) 3,38,000 Prepaid Canteen Expenses 10,000
Furniture 1,40,000
Building 1,50,000
Fixed Deposit with Bank 1,00,000
5,50,000 5,50,000
* It should be noted that after the completion of the purpose of a special fund, the balance lying in that
fund is transferred to Capital Fund.

Illustration 11.
On the basis of the following information, prepare Income & Expenditure Account for the year
ended 31st March, 2010:

RECEIPTS & PAYMENTS ACCOUNT
Dr. for the year ended 31st March, 2010 Cr.
Receipts ` Payments `
To Cash in Hand (Opening) 1,300 By Salaries 2,58,000
To Cash at Bank (Opening) 3,850 By Rent 71,500
To Subscriptions 4,94,700 By Printing and Stationery 3,870
To Interest on 8% Government Bonds 4,000 By Conveyance 10,600
To Bank Interest 160 By Scooter Purchased 50,000
By 8% Government Bonds 1,00,000
By Cash in Hand (Closing) 840
By Cash at Bank (Closing) 9,200
5,04,010 5,04,010

(i) Salaries paid includes ` 6,000 paid in advance for April, 2010. Monthly salaries paid were
` 21,000.
(ii) Outstanding rent on 31st March, 2009 and 31st March, 2010 amounted to ` 5,500 and
` 6,000 respectively.
(iii) Stock of printing and stationery material on 31st March, 2009 was ` 340; it was ` 365 on
31st March, 2010.
(iv) Scooter was purchased on 1st October, 2009. Depreciation @ 20% per annum is to be
provided on it.
(v) Investments were made on 1st April, 2009.

(vi) Subscriptions due but not received on 31st March, 2009 and 31st March, 2010 totalled
` 14,000 and ` 12,800 respectively. On 31st March, 2010, subscriptions amounting to
` 700 had been received in advance for April, 2010. (IPCC—May, 2010)