Short Answer TypeWhat is the basis for preparing an Income and Expenditure Account in the case of Not-for-Profit Organizations.
Distinguish between Fixed and Fluctuating Capital Accounts.
In fixed capital account method, two separate accounts are maintained for each partner capital account and current account. In fluctuating capital accounts method, each partner maintains only one account, i.e. capital account.
From the following information of a club, show the amounts of match expenses and match fund in the Financial Statements of the Club for the years ended on 31st March, 2009 and 31st March, 2010.
|
Details Amount Rs. |
|
Match expenses (paid during the year 2009 - 2010) 30,000 Match Fund (as on 31-3-2009) 17,000 Donation for Match Fund (Received during the year 2009-2010 9,000 Proceeds from the sale of match tickets (Received during the year 2009-2010) 3,000 |
A and B are partners in a firm sharing profits and losses in the ratio of 3:2. The following was the Balance Sheet of the firm as on 31-3-2010.
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Capital A
B |
60,000
20,000 |
Sundry Assets |
80,000 |
|
|
80,000 |
|
80,000 |
The profits Rs. 30,000 for the year ended 31-3-2010 were divided between the partners without allowing interest on capital @ 12% p.a. and salary to A @ Rs. 1,000 per month. During the year A withdrew Rs. 10,000 and B Rs. 20,000. Pass the necessary adjustment journal entry and show your working clearly.
A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in similar business is 10%. Find out the value of Goodwill by (i) Capitalisation of super profit method and (ii) Super profit method if the goodwill is valued at 3 years purchase of super profit. The assets of the business were Rs. 10,00,000 and its external liabilities Rs. 1,80,000.
From the following item of Receipts & Payments A/c. of Young Ladies Club, prepare an Income and Expenditure Account for the year ended 31-3-2010.
Rs.
Salaries paid 50,000
Lighting and Heating 5000
Printing and Stationery (including Rs. 500 for the previous year) 3500
Subscriptions received (including Rs. 2,000 received in advance
and Rs 5,000 for the previous year) 40,000
Net proceeds of Refreshment Room 45,000
Miscellaneous expenses 16,000
Interest paid on Loan for half year 1,200
Rent and Rates (including Rs. 1,000 prepaid) 7,5000
Locker rent received 4,500
Additional Information:
Subscriptions in arrears on 31-3-2010 were Rs. 8,000 and Half year's interest on loan was also outstanding.
Pass the necessary Journal entry when 10,000 debentures of Rs. 100 each are issued as collateral security against a Bank loan of Rs. 8,00,000.
Y Ltd. purchased furniture costing Rs. 1,35,000 from A. B. Ltd. The payment was made by issue of Equity Shares of Rs. 10 each at a discount of Rs. 1 per share. Pass necessary Journal entries in the books of Y Ltd.
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