NPO QUESTION WITH ANSWER

From the following Receipt and Payment account of Patan Sports Association, Patan and the adjustments. You are required to prepare Income and Expenditure Account for the year ended 31^st March, 2004 and a Balance sheet as on that date.    (16)

          Receipts and Payments Account for the year ended 31^st March 2004.

Receipts	Amt. (`.)	Payments	Amt. (`.)
To Balance b/d	4,160	By Salaries	5,500
To Subscription:		By Entertainment Exp.	2,580
2003-04                16,000		By Lighting	1,000
2004-05                     412	16,412	By General Expenses	1,536
To Donation	2,000	By Taxes	500
To Receipt from Entertainment	3,644	By Investments	12,000
To Interest on Investment	324	By Printing & Stationery	944
To Entrance Fees	4,500	By Expenses of 2002-03	2,400
To Price Fund	3,000	By Fixed Deposit	4,000
		By Bank Balance	3,000
		By Balance c/d	580
	34,040		34,040

Adjustments:

(1)          There are 450 members paying an annual subscription of `. 40 each.

(2)          Salary outstanding on 31^st March, 2004 was `. 1,000.

(3)          Building stood in books `. 60,000 and furniture at `. 4,600 on 1^st April, 2003. Write off depreciation on these assets @ 2% and 10% respectively.

(4)          Interest on investment @ 5% has accrued for 3 months.

(5)          The capital fund was `. 66,360 on 1^st April, 2003.

(6)          60% of the entrance fee is to be capitalised.

Income & Expenditure A/c for the years ended 31-3-2004

Expenditure	`.	`.	Income	`.	`.
To Entertainment Exp. To Salaries Add: Outstanding To Lighting To General Expenses To Taxes To Printing & Stationery To Depreciation      Building      Furniture To Surplus	5,500   1,000 1,200     460	2,580 6,500 1,000 1,536 500 944 1,660 11198	By Donation By Receipt from Entertainment By Interest on Investment Add: Interest By Entrance Fees Less: Capitalised By Surplus	324    150 4,500   2,700	2,000 3,644 474 1,800 18,000
		25,918			25,918

Balance Sheet as on 31-3-2004

Liabilities	`.	`.	Assets	`.	`.
Capital Fund Add: Entrance Fees Add: Surplus Price Fund Outstanding Salary Subscription paid in advance	66,360    2,700 69,060   11198	80258 3000 1000 412	Building Less: Depreciation Furniture Less: Depreciation Investments Add: Interest Fixed Deposit Bank Balance Cash Subscription receivable	60,000    1,200 4,600     460 12,000     150	58,800 4,140 12,150 4,000 3,000 580 2,000
		84670			84670

Opening Balance Sheet as on 1-4-2003

Liabilities	Amt. (`.)	Assets	Amt. (`.)
Capital Fund Outstanding Expenses	66360 2400	Building Furniture Cash	60000 4600 4160
	68760		68760

Working Note :-

I]  To find out subscription for the year.                       II] To find out Expenses for the year.

Particulars	`.	Particulars	`.
Amount received as per Receipts & Payments Less: Receivable of last year Add: Advance of last year Add: Receivable of current year Less: Advance of current year Add: Still receivable of last year	16,412 - - 2000 412 -	Amount paid as per Receipts & Payments Less: Outstanding of last year Add: Prepaid of last year Add: Outstanding of current year Less: Prepaid of current year Add: Still outstanding of last year	2400 2400 - - - -
Income for the year	18000	Expenses for the year	-