Financial Statements of not-for Profit Organisations

Importante Point : Expenses for the current year only is shown in In come and Expenditure Account for the same year, whether paid or not.

Illustration 4.
Following is the Receipts and Payments Account of Literary Society for the year ended March 31, 2011:

Following additional information is to be considered:

1. On April 1, 2010 the society had the following assets and liabilities : Investments Rs2,00,000; Furniture Rs15,000; library books Rs25,000; liability for Rent Rs300 and for Salaries Rs1,000. Subscripition in Arrears was Rs600.
2. On March 31, 2011 Rent of Rs400 and Salaries Rs1,250 were in arrears. All the Subscription for the year 2010-11 has been received.
3. The book value of Furniture sold was Rs1,250.

Prepare the Income and Expenditure Account of the society for the year ended on March 31, 2011 and the Balance Sheet as at that date.

Solution :

Income and Expenditure Account for the year ended on March 31, 2011

CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari ) 
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