Professional Documents
Culture Documents
ANDHRA PRADESH
CCP302.71 TO 72 2
Recap
CCP302.71 TO 72 3
Balance sheet of non-trading concerns
CCP302.71 TO 72 4
Balance sheet of non-trading concerns
contd.
CCP302.71 TO 72 5
In the year of commencement of a Non-
Trading concern:
CCP302.71 TO 72 6
Illustration
CCP302.71 TO 72 7
Receipts and payments A/c
Receipts Rs Payments Rs
To Donations 50000 By building 40000
To life member fee 1500 By tournament exp 900
To entrance fee 2500 By furniture 2100
To tournament fund To 10000 By salaries 1800
subscriptions 3200 By exp. Or cricket 1140
(including Rs 100 for By insurance 360
1971)
200 By gardening 170
To interest
900 By printing 80
To other match
receipts By postage 200
To sundry receipts 100 By sundries 150
By investments 18000
By cash balance 3500
68400 68400
CCP302.71 TO 72 8
Adjustments
Subscription for 1970 amounting to Rs 300 were
outstanding
Unpaid salaries for 1970 were Rs. 170/-
Rs.200/- is the amount of interest accrued on
investment
You are required to prepare the income and
expenditure account and balance sheet
CCP302.71 TO 72 9
Solution Income and expenditure A/c
for the year ending 31st Dec. 1970
Rs Rs
To salaries 1800 By subscriptions 3200
Add outstanding 170 1970 Less received in
To insurance 360 advance 100
Less prepaid 180 180 3100
To postage 200 Add outstanding 300 3400
To printing 80 By other match receipts 900
To sundries 150 By interest 200
To gardening 170 By sundry receipts 100
To cricket expenses 1140 By interest on 200
investments
To excess of income
over expenditure 3140 By entrance fees 2500
7300 7300
CCP302.71 TO 72 10
Balance sheet of star sports club as on 31-12-1970
Liabilities Rs Payments Rs
68400 68400
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Capital fund
CCP302.71 TO 72 12
Calculation of capital fund
CCP302.71 TO 72 13
Liabilities given at the beginning of this year, are
treated as liabilities of the last year. post them on
liabilities side
Out standing salaries, out standing rents etc. of the
previous year (paid in current year) are liabilities of
previous year. Post them on liabilities side
Identify all such items and find the balance
The balance is capital fund
CCP302.71 TO 72 14
(2) From the following receipts and payments
account of Jupiter club prepare Income and
Expenditure account for the year ended 31st Dec
1999 and Balance Sheet as on that date
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Receipts & payments a/c of Jupiter Club
for the year ending 31st Dec. 1999
Receipts Rs Payments Rs
10472 10472
CCP302.71 TO 72 18
Balance sheet of Jupiter Club as on 31st Dec 1998
Liabilities Rs Assets Rs
Capital fund 14532 Cash 704
(Balancing figure) Bank’ 5476
Fixed deposited 6000
Subscription 1320
Postage stamps 150
Cricket equipment 642
Crockery 240
14532 14532
CCP302.71 TO 72 19
Balance sheet as on 31st Dec 1999
Liabilities Rs Assets Rs
Salary out standing 200 Cash 440
Tournament fund 4000 Bank 4664
Less expenses 3760 240 Fixed deposits 6000
Capital fund 14532 Investments 1140
Add excess of Postage stamps 180
income over cricket equipment 560
Expenditure 442 14974 Crockery 530
Subscriptions
1998—120 1720
1999---1600 180
deposit
15414 15414
CCP302.71 TO 72 20
Summary
When the capital fund is not given in the problem it
should be asserting
To find out the capital fund the formula is
Assets – liabilities
The balance is capital fund
Balance sheet is prepared by non trading concerns also
I come and expenditure account is accompanied by the
balance sheet
It is similar to balance sheet prepared in sole trading
concerns
CCP302.71 TO 72 21
Assignment
CCP302.71 TO 72 22