What 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.

3.

State the two main rights that a newly admitted partner acquires in the firm. 

How does the market situation affect the value of goodwill of a firm?

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.

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. 

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.