Accounting For Non Profit Organizations

Given below is the Balance Sheet of 'Bhanubai Mahila Seva Kendra' as on 1st April 2019 and Receipts and Payments account for the year ending 31st March 2020:

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Receipts and Payments Account for the year ended 31st March 2020:

$%5Cbegin%7Barray%7D%7B%7Cl%7Cr%7Cl%7Cr%7C%7D%20%5Chline%20%5Ctext%7BReceipts%7D%20%26%20%5Ctext%7BAmount%20(%E2%82%B9)%7D%20%26%20%5Ctext%7BPayments%7D%20%26%20%5Ctext%7BAmount%20(%E2%82%B9)%7D%20%5C%5C%20%5Chline%20%5Ctext%7BTo%20Balance%20b%2Fd%7D%20%26%20%26%20%5Ctext%7BBy%20Electricity%20Charges%7D%20%26%2025%7B%2C%7D000%20%5C%5C%20%5Ctext%7BCash%20in%20hand%7D%20%26%201%7B%2C%7D000%20%26%20%5Ctext%7BBy%20Wages%7D%20%26%2022%7B%2C%7D000%20%5C%5C%20%5Ctext%7BCash%20at%20bank%7D%20%26%2010%7B%2C%7D000%20%26%20%5Ctext%7BBy%20Stationery%7D%20%26%203%7B%2C%7D000%20%5C%5C%20%5Ctext%7BTo%20Subscription%3A%7D%20%26%20%26%20%5Ctext%7BBy%20Rent%20and%20Taxes%7D%20%26%2011%7B%2C%7D800%20%5C%5C%202018%7B-%7D2019%20%26%202%7B%2C%7D000%20%26%20%5Ctext%7BBy%20Travelling%20Expenses%7D%20%26%208%7B%2C%7D000%20%5C%5C%202019%7B-%7D2020%20%26%2045%7B%2C%7D000%20%26%20%26%20%5C%5C%202020%7B-%7D2021%20%26%203%7B%2C%7D000%20%26%20%5Ctext%7BBy%20Balance%20c%2Fd%3A%7D%20%26%20%5C%5C%20%5Ctext%7BTo%20Entrance%20fees%7D%20%26%2028%7B%2C%7D000%20%26%20%5Ctext%7BCash%20in%20hand%7D%20%26%204%7B%2C%7D000%20%5C%5C%20%5Ctext%7BTo%20Other%20receipts%7D%20%26%205%7B%2C%7D000%20%26%20%5Ctext%7BCash%20at%20bank%7D%20%26%2020%7B%2C%7D200%20%5C%5C%20%5Chline%20%5Ctext%7BTotal%7D%20%26%2094%7B%2C%7D000%20%26%20%5Ctext%7BTotal%7D%20%26%2094%7B%2C%7D000%20%5C%5C%20%5Chline%20%5Cend%7Barray%7D$

Additional information:

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Prepare:

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Step 1: Prepare the Income and Expenditure Account for the year ended 31st March 2020.
Income and Expenditure Account is prepared as a summary of the receipts and payments, distinguishing between revenue and capital items. Income: - Subscriptions received: ₹45,000 (for the year 2019-20) - Entrance fees received: ₹28,000 - Add: Subscription outstanding for 2019-20 (₹3,000)

Expenditure: - Wages: ₹22,000 (Paid) + ₹450 (Outstanding Wages) - Electricity Charges: ₹25,000 - Rent and Taxes: ₹11,800 - Travelling Expenses: ₹8,000 - Stationery: ₹3,000 - Depreciation on Furniture at 10%: ₹2,000 (on ₹20,000 furniture)

Income and Expenditure Account for the year ended 31st March 2020

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Step 2: Prepare the Balance Sheet as on 31st March 2020.
The final Balance Sheet is prepared after adjustments for the surplus or deficit, depreciation, and outstanding items.

Balance Sheet as on 31st March 2020

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Final Answer: $%5Ctext%7B(a)%20Income%20and%20Expenditure%20account%20shows%20a%20surplus%20of%20%E2%82%B95%2C750.%7D$ $%5Ctext%7B(b)%20The%20Balance%20Sheet%20as%20on%2031st%20March%202020%20is%20balanced%20at%20%E2%82%B956%2C450.%7D$

High-Yield Trend

Chapter Questions
1 MCQs

Official Solution

About Accounting For Non Profit Organizations - MAHARASHTRA-CLASS-XII

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