ACCOUNTING TREATMENT OF SOME IMPORTANT ITEMS LIKE Entrance fess, General & Specific funds-I, Calculation of the Cost of consumable Goods, Accounting treatment of Outstanding expenses

1. Ms. Aarti
Accounting for
NON-Profit
Organization

2. Accounting
treatment
of Entrance fess

3. Capital Receipt ? or
Revenue Receipt?

4.  Case 1: During the year 2018-19, Entrance fees received is
Rs. 1,00,000.
Income & Expenditure A/c
For the year ended 31 March ,2019
Expenditure Amount Income Amount
By Entrance Fee 1,00,000
Dr. Cr.

5.  Case 2 : During the year 2018-19, Entrance fees is Rs.
1,00,000. the policy of the club is to treat Entrance fees as
Revenue Receipt.
Income & Expenditure A/c
For the year ended 31 March ,2019
Expenditure Amount Income Amount
By Entrance Fee 1,00,000
Dr. Cr.

6.  Case 3 : During the year 2018-19, Entrance fees is Rs.
1,00,000. the policy of the club is to treat Entrance fees as
Capital Receipt.
Expenditure Amount Income Amount
By Entrance Fee 1,00,000
Liabilities Amount Assets Amount
Capital Fund XXXXX
Add: Entrance Fees 1,00,000
Balance Sheet
31st march 2019
Income & Expenditure A/c
For the year ended 31 March ,2019
Dr. Cr.

7.  Case 4 : During the year 2018-19, Entrance fees is Rs.
1,00,000. the policy of the club is to capitalized the 50% of
entrance fees.
Expenditure Amount Income Amount
By Entrance Fee 1,00,000
Liabilities Amount Assets Amount
Capital Fund XXXXX
Add: Entrance Fees 50,000
(50% of 1,00,000)
Balance Sheet
31st march 2019
Income & Expenditure A/c
For the year ended 31 March ,2019
Dr. Cr.

8. Ms. Aarti
Accounting for
NON-Profit
Organization
General &
Specific Funds

9. Accounting treatment
of
General & Specific funds-I

10. Particulars Amount
Sports Fund 1st April 2018 1,00,000
10% Sports Fund investment on 1st April 2018 1,00,000
Interest Received on Sports Fund Investment 7,000
Donation for Sport Fund 50,000
Sports Prize Awarded 30,000
Expenses on Sports Events 10,000
Show the Accounting
treatment in
Balance Sheet
of the information given in
the table at 31st March
2019
Opening Balance
 Add Interest Received
 Add Interest Accrued
 Add Donations
 Less Prizes Awarded
 Less Expenses on the Event
 Interest Accrued
 Sports Fund Investment

11. Liabilities Amount Assets Amount
Sports Fund 1,00,000
Add: Interest Received 7,000
Add: Accrued Interest 3,000
Add: Donations 50,000
Less: Prizes Awarded (30,000)
Less: Expenses on Event (10,000) 1,20,000
Sport Fund Investment
Interest Accrued
1,00,000
3,000
Total Interest due on Investment = 10,000
(10% on 1,00,000)
Interest Received = 7,000
Interest Accrued = 3,000

12. Accounting treatment
of
General & Specific funds-II

13. If Match Expenses=8,00,000
Match Fund = 4,00,000
Add: Donation = 2,40,000
Add: Sale of Tickets = 3,60,000
Less : Match Expenses = 8,00,000
2,00,000
Amount Transfer into
Balance Sheet
Particulars Amount
Match Fund 4,00,000
Donation for Match Fund 2,40,000
Sale of Match Tickets 3,60,000
If Match Expenses=10,50,000
Match Fund = 4,00,000
Add: Donation = 2,40,000
Add: Sale of Tickets = 3,60,000
Less : Match Expenses = 10,50,000
(50,000)
Amount debited into
Income & Expenditure A/c

14. Accounting treatment
of
General & Specific funds-III

15. Case 1 :
 Prizes Awarded Rs. 1,000
Expenditure Amount Income Amount
To Prize Awarded 1,000
Income & Expenditure A/c
For the year ended 31 March ,2019
Dr. Cr.
Posted in Income & Expenditure A/c because no Prize Fund Exist.

16. CASE 2 :
 Prizes Awarded Rs. 1,000;
 Prize Fund as on 1April 2018 is Rs. 50,000.
 Donation for Prizes received during the year 2018-19 is 5,000.
Liabilities Amount Assets Amount
Prize Fund
Opening Balance 50,000
Add: Donations 5,000
Less: Prizes Awarded (1,000)
54,000

17. CASE 3 :
 Prizes Awarded Rs. 1,000;
 Prize Fund as on 1April 2018 is Rs. 50,000.
 Donation for Prizes received during the year 2018-19 is 5,000.
 10% Prize Fund Investment as on 1APRIL 2018 IS Rs. 40,000.
 Interest received on Prize Fund is Rs. 2,000.
Liabilities Amount Assets Amount
Prize Fund 50,000
Add: Interest (2,000+2,000) 4,000
Add: Donations 5,000
Less: Prizes Awarded (1,000) 58,000
Sport Fund Investment
Interest Accrued
Interest Due-
40,000 x 10% = 4,000
received = 2,000
Accrued Interest = 2,000
40,000
2,000

18. Ms. Aarti
Accounting for
NON-Profit
Organization

19. Calculation of the Cost of
consumable Goods
Purchase of consumable good = …….
Add: Opening Stock = …….
Less: Closing Stock = …….
Balance to be shown in income & Exp. A/c =

20. Accounting treatment
of Outstanding expenses
Rent paid during the year = ……..
Add: Outstanding rent at the end of the year = ……..
Less: Outstanding at the beginning of the year = ……..
Net amount to be transferred to the Dr. side of Income & Exp. A/c=
Outstanding rent at the end of the year = Liability side of Closing Balance Sheet
Outstanding at the beginning of the year = Liability side of Opening Balance Sheet

21. Accounting treatment
of Prepaid expenses
Insurance Charges paid during the year = .……..
Less : Prepaid insurance at the end of the year = ……...
Add : Prepaid Insurance at the beginning of the year = ……...
Net amount to be transferred to the Dr. side of Income & Exp. A/c= ………
Prepaid insurance at the end of the year = Asset side of Closing Balance Sheet
Prepaid Insurance at the beginning of the year = Asset side of Opening Balance Sheet