Accounting for Non-Profit Organisations

3.0                    INTRODUCTION

Some organisations like clubs, hospitals, educational institutions are established not for making profit but for the purpose of providing services to members and beneficiaries. Receipts and Payments A/c Income and Expenditure A/c and Balance Sheet form part of their final accounts.

3.1           TREATMENT OF CERTAIN ITEMS

1)       Entrance Fees : Such fees are received by non profit seeking organisations at the time of admitting new members. For the incoming member it is a one time payment. Entrance Fees can be capitalised or charged to Income Expenditure A/c as per rules of the organization.

2)       Donations : Donation can be utilised for meeting capital or revenue expenses. When received for a special purpose, the amount of donation is credited to a special fund, which may be invested in specific securities. Interest, Dividend, etc. received from such investments are credited to Fund A/c expenses for performing the purpose of Fund is charged to Fund A/c.

3)        Life membership subscriptions: This can be treated in the following ways in the Accounts :–

i)       The entire amount is transferred to a special Account on death of the member and it is transferred to the Accumulated Fund.

ii)       An amount equal to normal yearly membership subscription is charged to Income and Expenditure A/c and the Balance is carried forward until exhausted. In case of death of a member the unexhausted portion is charged to Accumulated Fund on the date of death.

iii)       An amount calculated according to age and average life of the member may annually be transferred to the credit of Income and Expenditure A/c

4)        Subscription : This is one of the main sources or Income and has to be accounted for on accrual basis. The amount of subscription chargeable to Income and Expenditure A/c can be determined by opening a Subscription A/c in the following way :

Dr.	Subscription A/c		Cr.
Particulars	Explanation	Particulars	Explanation
To Balance b/d	Subscription A/c Opening	By balance b/d	Opening Balance of
	balance of accrued		advance subscription
	subscription
To Income and	Balancing figure	By Bank A/c	Total receipts during
Expenditure A/c			the year
To Balance c/d	Closing balance of	By Balance c/d	Closing balance of
	advance subscription		accrued subscription

5)        Sale of News papers & used sports materials:

Sale proceeds are credited to Income & Expenditure A/c

6)        Sale of Assets: Sale proceeds are debited in Receipts & Payments A/c and the Profit/Loss on sale is taken to Income/Expenditure A/c.

Illustration 1:

A summary of Receipts and Payments Account of Calcutta Club for the year ended 31.03.97 is given below :

Receipts	Rs.	Rs.	Payments	Rs.
Cash in hand (1.4.96)		4,740	Wages	13,380
Subscription :
1995-96=	700		Restaurant Purchase	50,400
1996-97=	28,620		Rent	7,500
1997-98=	400		Rates	2,200
		29,720	Secretary's Salary	3,120
Entrance Fees		3,200	Lighting & Other Services	7,700
Restaurant Receipts		56,800	Competition Prizes	4,000
Tournament Receipts		13,640	Printing & Stationary	6,000
Due to Secretary for			Fixed Deposits	8,000
Petty Expenses		80	Balance in hand and at Bank	5,880
		1,08,180		1,08,180

On April 1,1996, the Club's Assets were : Furniture and Equipment Rs. 48,000; Restaurant Stocks Rs. 2,600; stock of Prizes Rs. 800; Rs. 5,200 was owing for supplies to the Restaurant.

On March 31,1997 the Restaurant Stocks were Rs. 3,000 and Prizes in hand were Rs. 5,600 while the Club owed Rs. 5,600 for Restaurant supplies.

It was also found that member's subscriptions unpaid at March 31,1997 amounted to Rs. 1,000.

Rent was paid upto June 30,1997. Prepare an account showing the Profit or Loss made on the Restaurant and a General Income and Expenditure account for the year ended 31.03.97 together with a Balance Sheet at that date, after writing 10% off the Furniture and Equipment.

Solution :

	In the books of CALCUTTA CLUB
Dr.	Restaurant Trading for the year ended 31.3.1997		Cr.
Particulars	Rs.	Particulars	Rs.
To Opening Stock	2,600	By Restaurant Receipts	56,800
To Purchase	50,800	By Closing Stock	3,000
To Profit (transferred to
Income & Exp. A/c)	6,400
	59,800		59,800

Dr.	Income & Expenditure Account for the year ended 31.3.97			Cr.
	Expenditure	Rs.	Income	Rs.

To Wages - Outdoor Staff	13,380
To Rent	5,000
To Rates	2,200
To Secretary's Salary	3,120
To Lighting, cleaning and Sanitary services	7,700
To Competition Prizes	4,300
To Printing, Postage and Sundries	6,000
To Depreciation on Furniture & Equipment 10%	4,800
To Excess of Income over Expenditure	3,160
	49,660

By Member's Subscription	29,620
By Games competition receipts	13,640
By Restaurant Profit	6,400

                                                               49,660

Balance Sheet as at 31.3.1997

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital Fund :			Furniture & Equipment	48,000
Opening Balance	50,390		Less: 10% Depreciation	4,800	43,200
Add : Entrance Fees	3,200		Restaurant Stock		3,000
Add : Excess of Income			Prizes in hand		500
over Expenditure	3,160	56,750	Fixed Deposit with Bank		8,000
Subscription Received in advance		400	Cash in hand and at Bank		5,880
Creditors for Restaurant supply		5,600	Prepaid Rent (April to June,1997)		1,250
Due to Secretary		80	Subscription Outstanding		1,000
		62,830			62,830

Illustration 2 :

From the following balances in the books and other details of Dancing Club, prepare Trading Account and Income and Expenditure Account for the year and a Balance Sheet as at 31.03.2002:

	Rs.
Bar Collections	21,250
Restaurant collections	14,360
Furniture on 31.03.2001	15,000
Tennis Accessories on 31.03.2001	5,500
Tennis Receipts	7,620
Furniture Purchased	500
Subscription	25,730
Interest	480
Capital Fund Balance as on 31.03.2001	17,720
Stock in Bar on 31.03.2001	1,560

Stock in Restaurant on 31.03.2001	510
Rent and Rates	6,700
Purchases for Bar	14,365
Purchases for Restaurant	11,735
China, Cutlery, Linen on 31.03.2001	2,400
Electric Charges	1,720
Establishments :
Bar	4,960
Restaurant	3,540
General	4,260
Outstanding Subscription on 31.03.2002	3,650
Creditors on 31.03.2002	5,000
Purchase of China, Cutlery, Linen	1,200
Cash and Bank balances on 31.03.2002	10,560
Investments	4,000

Stock in Bar on 31.03.2002 — Rs. 4,000; Stock in Restaurant on 31.03.2002 — Rs. 1,230. Provide depreciation on opening balances; Furniture @ 20% (50% to be charged to Bar and Restaurant on collection basis); Tennis Accessories 20%; China, Cutlery, Linen 20% (to be charged on collection basis).

Solution :

DANCING  CLUB

Trading Account for the year ended 31st March, 2002

Particulars	Bar	Restaurant	Particulars	Bar	Restaurant
To Opening Stock	1,560	510	By Collection	21,250	14,360
To Purchases	14,365	11,735	By Closing Stock	4,000	1,230
To Establishment	4,960	3,540	By Income & Expenditure A/c
To Depreciation :	900	600	– deficit transferred		1,083
on furniture
on Cutlery, Linen, etc.	432	288
To Income & Expenditure A/c
– Surplus transferred	3,033
	25,250	16,673		25,250	16,673

Notes : Depreciate furniture by 20% (i.e., Rs. 3,000) out of which 50% of Rs. 3,000 distributed and the ratio of 3 : 2 as rounded off on 21,250 : 14,360. Depreciate China, Cutlery & Linen by 20% (i.e., Rs. 720) and distributed as 3 : 2 as above.

Income & Expenditure Account for the year ended 31st March, 2002

Expenditure	Rs.	Rs.	Income	Rs.	Rs.
To Establishment		4,260	By Subscription		25,730
To Rent & Rates		6,700	By Tennis Receipts		7,620
To Electric Charges		1,720	By Interest		480
To Depreciation :			By Profit on Trading :
Furniture	1500		Bar	3033
Tennis Accessories	1100	2,600	Less: Loss in Restaurant
To Excess of Income over			Section	1083	1,950
Expenditure A/c
– Surplus transferred		20,500
		35,780			35,780

Notes : 50% of depreciation on furniture (i.e., of Rs. 3,000). Ledger balance after adjustment with outstanding subscription.

Balance Sheet as at 31st March, 2002

	Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
	Capital Fund :			Furniture	15,000
Balance on 1.4.2001		17720		Less: Depreciation	3,000
Add: Excess of Income over Expenditure		20,500	38,220	Add: during the year	12000
Creditors			5,000		500	12,500
				Tennis Accessories	5500	4,400
				Less: Deprn.	1100
				China, Cutlery, Linen	2400
				Add: During the year	1200
					3600
				Less: Depreciation	720	2,880
				Investments		4,000
				Stock in Bar		4,000
				Stock in Restaurant		1,230
				Outstanding Subscription		3,650
			.	Cash & Bank Balances		10,560
			43,220			43,220

SPECIMEN QUESTIONS WITH ANSWERS

Question 1:

The following is the Receipt and Payment Account of Jayshree Sangha Club in respect of the year to 31.12.98.

	Receipt	Rs.		Payment	Rs.
1.1.98			31.12.98
To Balance b/d		25,000	By Salaries		24,000
	31.12.98		By	Stationery	5,000
To	Subscription :		By	Rates	12,000
	1997	800	By	Telephone Charges	2,000
	1998	40,000	By	Investment	40,000
	1999	1,500	By	Sundry Expenses	9,000
To	Sales of Newspaper	1,200	By Balance c/d		9,500
To	Dividend on Investment	25,000
To	Donation	8,000
		1,01,500			1,01,500

Additional information available :

(a)       There are 500 members each paying as annual subscription of Rs. 100 ; Rs. 1,000 being in arrear for 1997 at the beginning of 1998.

(b)       Stock of stationery on 31. Dec. 1997 was Rs. 2000 and on 31st Dec. 1998 Rs. 1500

(c)        At 31st Dec. 1998, the rates were prepaid to the following 31st March, the yearly charges being Rs. 12,000. A Quarter’s charge for telephone is outstanding for Rs. 500. Sundry Expenses outstanding on 31st Dec. 1997 was Rs. 1200.

(d)       At 31st Dec. 1997 the Building stood in the book at Rs. 1,50,000 on which depreciation is to be provided at 5% per annum. Investment on 31.12.1997 were Rs. 3,50,000.

Prepare an Income & Expenditure Account for the year ended 31st Dec. 1998 and a Balance Sheet as on that date.

Answer :

In the books of Jayshree Sangh Club

Dr.	Income and Expenditure Account for the year ended31.12.98					Cr.
	Expenditure	Rs.	Rs.		Income	Rs.	Rs.
To	Salary		24,000	By	Subscription	40,000
To	Stationery used :			Add : Outstanding		10,000	50,000
– Opening stock		20,000
Add : Purchase		5,000		By	Sale of newspaper		1,200
		7,000
Less : Closing Stock		1,500	5,500	By	Dividend on Investment		25,000
To	Rates	12,000		By	Donation		8,000
Less : Prepaid (3/12×12,000)		3,000	9,000
To Telephone Charge		2,000
Add : Outstanding		500	2,500
To	Sundry Exp.	9,000
Less : Outstanding for ‘97		1,200	7,800
To	Deprn. on Building		7,500
To Surplus (Excess of Income over
Expenditure transfer to Capital Fund)			27,900				.
			84,200				84,200

Jayshree Sangha Club

Balance Sheet as at 31.12.98

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital	5,26,800		Building	1,50,000
Add : Surplus	27,900	5,54,700	Less : Deprn. @ 5%	7,500	1,42,500
Subscription received in advance		1,500	Investment	3,50,000
			Add : Purchase	40,000	3,90,000
Outstanding Telephone Charge		500	Stock of stationery		1,500
			ACCRUED SUBSCRIPTION :	200
			1997
			1998	10.000	10,200
			Prepaid Rates		3,000
			Cash		9,500
		5,56,700			5,56,700

Working Notes :–

1.        Analysis of Subscriptions :

(a)	For 1997	Rs.
	Total Amount due on 31.12.97	1,000
	Less : Received in 1998 on A/c	800
		200
(b)	For 1998
	Annual subscription times 500 × Rs. 100	. 50,000
	Less : Received in 1998 on Account	40,000
	outstanding on 31.12.98	10,000
(c)	For 1999
	Received in advance	1,500

2.         Opening Capital on 31.12.97 or 1.1.98

Balance Sheet as on 1.1.98

Liabilities	Rs.	Assets	Rs.
Capital (Balancing figure)	5,26,800	Cash	25,000
Outstanding Sundry Expenses	1,200	Outstanding Subscription	1,000
		Stock of Stationery	2,000
		Building	1,50,000
		Investment	3,50,000
	5,28,000		5,28,000

Question 2:

On 31st March, 1999 Writers Club, a cultural association had the following assets and liabilities:

	Rs.		Rs.
Trust fund	5,00,000	Cash	3,000
Accumulated surplus in		Canara Bank:
income and expenditure A/c	1,05,000	Savings A/c	7,000
Membership fee received in		Fixed deposit	2,00,000
advance for 1999-2000	10,000	Investments in:
Outstanding expenses	10,000	Government securities	3,00,000
		Fixed assets	95,000
		Membership fee receivable	15,000
		Prepaid expenses	5,000
	6,25,000		6,25,000

The following is the receipt and payment account for the year ended 31st March, 2000:

Rs.

Opening balance:	3,000
Cash
Savings with
Canara Bank	7,000
	10,000
Membership fee received	14,000
up to 31/3/1999
for 1999-2000	1,50,000
for 2000-2001	16,000
	1,80,000
Sale of tickets - programme	25,000
Advertisements in program
souvenir	5,00,000
Fixed deposits with
Canara Bank	75,000
Interest on bank A/c:
Savings	700
Fixed deposit	22,000
	22,700

		Rs.
Administrative expenses		1,25,000
Programme expenses including
cost of printing souvenir		2,75,000
Fixed deposits with Canara Bank		1,25,000
Fixed assets purchased		80,000
Investments in ICICI Bond		3,00,000
Closing balance:
Cash	2,700
Savings with
Canara Bank	5,000	7,700

Amount received on maturity of
government security inclusive of
interest Rs. 8,000 (cost Rs. 80,000)	1,00,000
	9,12,700	9,12,700

The club informs you that :

(i)       membership fee for 1999-2000 due is Rs. 25,000; it includes Rs. 1,000 due from the member who has not yet paid also for 1998-99; provision for irrecoverable membership is to be made in respect of this member.

(ii)       Income receivable on 31-3-2000 on ICICI bond is Rs. 30,000 and on government securities is Rs. 24,000.

(iii)      Prepaid expenses on 31-3-2000 amount to Rs. 7,000.

(iv)       Outstanding expenses on 31-3-2000 amount to Rs. 8,000.

(v)        Depreciation provision is to be Rs. 12,500.

(vi)       Programme is an annual feature.

 The club asks you to prepare

(a)       Income and expenditure account for the year ended 31st March, 2000.

(b)       Balance sheet as at 31st March, 2000.

Answer :

WRITERS CLUB :

Income and Expenditure A/c for the year ended 31st March, 2000.

	Expenditure	Rs.		Income		Rs.
To	Administration expenses		By	Membership fee (Working 1)		1,85,000
	(Working 3)	1,21,000	”	Interest Income :
”	Depreciation.	12,500		(Working 4)		84,700
”	Provision for doubtful		”	Surplus from programme
	memberships			(Working 7)		2,50,000
	(Working 2)	2,000	”   Profit on disposal of
”	Surplus for the year	3,96,200		government securities
				(Working 6)		12,000
		5,31,700				5,31,700
		Writers Club
		Balance Sheet as at 31st March, 2000
	Liabilities :	Rs.		Assets :		Rs.
Trust Fund :				Cash		2,700
As per last balance sheet.		5,00,000	Canara Bank :
Income and expenditure A/c –		1,05,000		Savings	5,000
As per last balance Sheet			Fixed deposit
Surplus for the year		3,96,200	(Working 8)		2,50,000	2,55,000
Membership fee received		5,01,200		Investments in :
			Government Securities
in advance		16,000		(Working 5)	2,20,000
Outstanding expenses		8,000	ICICI Ltd. Bonds		3,00,000	5,20,000
			Interest income receivable on :-
				Government securities
				(Working 4)	24,000
				ICICI Ltd. bonds	30,000	54,000

		Membership fees due for
		1998-99		1,000
		1999-2000		25,000
				26,000
		Less: Provision for
		doubtful dues		2,000	24,000
		Prepaid expenses			7,000
		Fixed assets : (Working 9)			1,62,500
	10,25,200				10,25,200
Working :
1)	Membership Fees
	Rs.					Rs.
Opening receivable.	15,000	Opening receipt in advance		14,000	10,000
Income & expenditure A/c.		Bank for  1998-99
(balancing figure)	1,85,000	1999-2000	1,50,000
Closing receipt in advance	16,000	2000-2001		16,000	1,80,000
		Closing receivable for :
		1998-99		1,000
		1999-2000		25,000	26,000
	2,16,000				2,16,000
2) Provision for Doubtful Recovery	Rs.
1998-99	1,000
1999-2000	1,000
Closing balance	2,000
3)	Expenses A/c
	Rs.				Rs.
Opening prepaid	5,000	Opening outstanding			10,000
Bank	1,25,000	Income & expenditure A/c
Closing outstanding	8,000	(balancing figure)			1,21,000
		Closing prepaid.			7,000
	1,38,000				1,38,000
4)  Interest income : Rs. Rs. Rs. Bank accounts : 700 Savings Fixed deposit 22,000 22,700 Investments : Government securities : received 8,000 receivable 24,000 32,000 ICICI Ltd. Bond : Receivable 30,000 62,000 84,700

5)       Investments in government securities :

Opening cost	3,00,000
Less : Realised	80,000
Closing cost	2,20,000

6)       Profit on disposal of government securities :

Amount received	1,00,000
Less : Interest	8,000	92,000
Cost		80,000
Profit		12,000
7)  Surplus from programme :
Advertisements in souvenir		5,00,000
Sale of tickets		25,000
		5,25,000
Less : Programme expenses.		2,75,000
		2,50,000

8)       Fixed deposit with Canara Bank

Opening balance	2,00,000
Add : Fresh deposit	1,25,000
	3,25,000
Less : Maturity	75,000
Closing balance		2,50,000
9)  Fixed assets :
Opening balance	95,000
Purchases	80,000	1,75,000
Less : Depreciation.		12,500
		1,62,500

Question 3 :

Paresh runs a circulating library and his accounts are in a mess. One Bank Account has been used for both the business as well as his personal transactions. After looking into his records you gather the following information :

(1)        Payments for Magazines for the year ended 31st March, 2002 – Rs. 9,700.

(2)        Payment of Delivery Peon’s Wages for the year ended 31st March, 2002 – Rs. 2,200.

(3)        Payment of other expenses for the year ended 31st March, 2002 – Rs. 3,080.

(4)        Subscription collected – Rs. 21,695.

(5)        He has taken Rs. 500 per month in cash from the subscription collection to pay to his wife for their household and personal expenses, depositing the balance of the collections into the Bank.

(6)        During the year he bought a second hand car (not used for the business) from a friend for Rs. 4,000. However, as the friend owed him Rs. 250 for subscription, the matter was settled by a cheque for the difference.

(7)        An assurance policy on his life matured during the year and realised Rs. 7,000.

(8)        Paresh issued a cheque for Rs. 1,200 to a friend as loan. The friend is repaying by instalments in cash, and owes Rs. 500 on 1st March, 2002.

(9)        Magazine subscription for the year amounting to Rs. 400 had to be written off by Paresh as irrecoverable.

(10)        Other personal payments by cheques total Rs. 2,350.

(11)       The cash collected includes Rs. 600 in respect of magazine subscription written off as irrecoverable in a previous year.

(12)        Paresh runs the business from his flat for which a rent of Rs. 90 per month is included in the payments for other expenses Rs. 3,080. The living accommodation may be regarded as two-thirds of the whole.

(13)        The following balances may be accepted as correct :

	31st March
Cash in Hand	2001 (Rs.)	2002 (Rs.)
	115	70
Bank Balance	4,720	5,880
Subscription receivable (Debtors) considered good	1,830	2,105
Creditors for purchase of Magazine	900	840
Stock of Magazine, at cost	2,450	830

You are required to prepare :–

(a)        A Cash and Bank Account for the year;

(b)        Paresh (Proprietor’s) Account for the year;

(c)        An income and Expenditure Account of the circulating Library for the year ended 31st March, 2002; and

(d)        A Balance Sheet of the Business as at 31st March, 2002.

Show your workings.

Answer :
		In the Books of Paresh
Dr.		Cash and Bank Account								Cr.
	Receipts	Cash	Bank					Payments	Cash	Bank
2002, April 1		115	4720	By	Creditors (Magazine)					9700
To	Balance b/d
To	Subscription	6000	15095	By	Other Expenses					2000
To	Subscription w/o in previous			By	Rent of Premises					1080
	year now recovered	600		By	Wages (Cash bal. figure)				1345	855
To	Capital A/c ( Proprietor’s			By	Drawing (Monthly )				6000
	Policy money )		7000	By	Drawings (Car)					3750
To	Drawings ( Refund of loan)	700		By	Drawings (for Loan to friend)					1200
				By	Drawings (Personal payments)					2350
				By	Balance c/d				70	5880
		7415	26815						7415	26815
	* Out of Rent Rs.1080, share of Paresh is Rs.720.
Dr.		Paresh (Proprietor’s) Account								Cr.
	Particulars		Rs.				Particulars			Rs.
To Drawings		13570		By Balance b/d						8,215
To Balance c/d			8045	By Bank (Policy money)						7,000
				By Income and Expenditure A/c						6,400
		21615								21615
Dr.	Mr. Paresh Income and Expenditure Account for the year ended 31st March, 2002									Cr.
	Particulars		Rs.	Rs.			Particulars			Rs.
To	Stock of magazine			2450			By	Subscription		22,020
To	Purchase (magazine)			9640			By	Subscription
							recovered for previous yr.			600
To	Delivery Peon’s Wages			2200			By	Stock of Magazine		830
To	Other Expenses			2000
To	Rent		1080
	Less: Proprietor’s Rent		720	360
To	Bad debts (Subscription W/O)			400
To	Excess of Income over
	Expenditure – transfer to Capital A/c			6400
				23,450						23,450

Balance Sheet of Paresh as at 31st March, 2002

		Liabilities	Rs.	Rs.	Assets			Rs.
	Trade Creditors (Re. Magazine)			840		Cash in hand		70
	Capital					Cash at Bank		5880
		Opening	8215			Sundry Debtors – Subscription
		Add: Additions	7000			receivable (considered good)		2105
Excess of Income over Expenditure			6400			Stock of Magazine		830
		Less: Drawings	(13570)	8045
				8885				8885
		Balance Sheet of Paresh as at 31st March, 2001
		Liabilities	Rs.	Assets				Rs.
	Creditors (Re- Magazines)		900	Cash at Bank				4720
	Capital (Balance Figure)		8215	Cash in Hand				115
				Subscription Receivable				1830
				Stock				2450
			9115					9115
		Working Notes :
Dr.			Drawings Account					Cr.
		Particulars	Rs.			Particulars		Rs.
	To	Cash (Monthly Exp.)	6000		By	Capital A/c (Transfer)		13570
	To	Bank (Loan to friend)	1200		By	Cash (Refund)		700
	To	Bank (Car)	3750
	To	Bank ( Personal Payment)	2350
	To	Other Expenses (Rent)	720
	To	Subscriptions ( Car)	250
			14270					14270
Dr.		Debtors (Re-Subscriptions) Account						Cr.
		Particulars	Rs.			Particulars	Rs.	Rs.
	To	Balance b/d	1830	By	Cash		6000
To		Subscriptions A/c (bal. fig.)	22020	By	Bank		15095	21095
				By	Bad Debts
					(Subscriptions – W/O)			400
				By	Drawings (Re. Car)			250
				By	Balance c/d			2105
			23850					23850

Question 4 :

From the following details prepare Balance Sheet of Ever Green Club as at 31.3.2003 :

Furniture (before Depreciation)	Rs.
	8,000
Depreciation on Furniture written of	800
Building Fund	30,000
Income of Building Fund	2,000
Fixed Deposits	20,000
Opening Balance of General Fund	10,000
Excess of Income over Expenditure	20,000
Capital Fund (Opening Balance)	60,000
Cost of Swimming Pool	40,000
Equipments	20,000
Investment of General Fund	36,000
Subscription Outstanding	10,000

Answer :

Printers’ Bill Outstanding	Rs.
	1,000
Allowances Outstanding	800
Capital Grants	10,000
Entrance Fees (50% to be Funded)	4,000
Legacies Received (to be Funded)	8,000
Prize Fund	10,000
Income of Prize Fund	1,000
Expenses of Prize Fund	800
Investment of Prize Fund	10,000
Balance in Current Account	10,000
Cash in Hand	800

Dr.	Balance Sheet of Evergreen Club as at 31.3.03					Cr.
	Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Funds :				Fixed Assets :		40,000
	Capital Fund :			Swimming Pool
	Balance	60,000		Equipments		20,000
	Add : Capital Grants	10,000		Furniture	8,000
	Legacies	8,000		Less : Deprn.	800	7,200
	Entrance Fees (50%)	2,000	80,000	Investments :
	General Fund :			General		36,000
	Balance	10,000		Prize Fund		10,000
	Add : Excess of Income			Receivables :
	Over Expenditure	20,000	30,000	Subscription outstanding		10,000
	Building Fund :	30,000		Cash & Bank Balances :		20,000
	Balance			Fixed Deposit
	Add : Income	2,000	32,000	Current Account		10,000
	Prize Fund :			Cash		800
	Balance	10,000
	Add : Income	1,000
		(800)	10,200
Current Liabilities :
	Allowances outstanding		800
	Printers’ Bill outstanding		1,000
			1,54,000			1,54,000