1. NPO
FINAL ACCOUNT OF NON
PROFITABLE
ORGANISATION

2. DR. Narendra
DR. SUBHASH RAJE
Dr. Arjun Patil
Western Gymkhana
Kalpana Hospital
Sangameshwar
Sports club..
Bajrangbali
Modern sports club
Padmavati high
school
Memorial hospital
Nanavathi Hospital
Young sports club
SURPLUS
3895
TALLY
9300
80800
74700
1907
108000
148200
109200
20605
626500
115500
107980
300
1377500
313200
72250
17400
-39100
- 10690
15830
866400
1007900
385810
70030

3. Introduction: Profitable organisations are those
organisations in which their main motive is to
earn profit and Not for Profit Organisations
(NPO) are those organisations in which their
main motive is not to earn profit but to render
services to their members.
Profitable organisations prepare Profit & Loss
account for the year ended to know the result of
the business and a balance sheet as on that
date to know the financial position of the
business. NPO prepares Income & Expenditure
account for the year ended to know the surplus
or deficit of the organisation and a balance sheet
to know the financial position of the
organisation.
Examples of profitable organisations are: Sole
trading concerns, Partnership firms, Companies,
etc.
Examples of NPO are: Schools, Colleges,
Hospitals, Sports club, etc.
In simple words, “A concern or an
organisation which is formed and established
to serve society or general public by
undertaking various activities without any
profit motive is called a ‘not for profit’
concern.”

4. Dr. Narendra commenced practice in the month
of April 2007. He prepared the following Receipts
& Payments Account for the year ended 31st
March, 2008.
Receipts
Amount Payments
Amount
To Cash
10000 By Furniture
1500
To Visits
7000 By Equipment
2500
To Sundry
400 By Drugs
2000
Receipts
By Salaries
1000
By Rent
500
By conveyance
700
By Stationery
100
By Lighting
125
By periodicals
100
By Drawings
4375
By Balance c/d
4500
17400
17400
Receipts and Payments A/c For the year ended 31st
March, 2008
1.Rs 200 were to be received on account of visits.
2.Unpaid Salaries Rs. 200
3.60% of conveyance is for private purposes.
4.Value of drugs on hand was estimated at Rs.
1,000.
5.Depreciate furniture and equipment by 10%
6.Prepare Income and Expenditure account and
balance sheet.

5. •Dr. Subhash Raje started practice as a medical
practitioner on 1st April, 2007. He gives you the
Receipts & Payments Accounts for the year 2007
– 08 and the adjustments to be made. Prepare his
Income and Expenditure Account and Balance
sheet for 2007 -08.
Receipts and payments account for the year
ended 31st March, 2008.
Receipts
To Cash Introduced
To Visits
To Receipts From
Dispensary
To Sundry Receipts
Amount
107500
84000
64000
12000
267500
Payments
By Furniture
By Equipment
By Drugs
By Salary
By Rent
By Conveyances
By Stationery
By Lighting
By Journals
By Drawings
By Balance c/f
Amount
50000
40000
35000
24000
6000
18000
5600
10000
1200
37700
40000
267500
Adjustments:
Receipts in arrears are: Visits Rs. 11,500 and
Dispensary Rs. 9,000.The outstanding salaries are
Rs. 1,800 and the outstanding expenses on drugs are
also Rs. 3,000.
40% of the amount spent on conveyance was for
domestic use. Stock of drugs in hand at the close of
the year was worth Rs. 4,200. Depreciate furniture at
5% p.a. and equipments at 10% p.a. Furniture and
equipment purchased on 1st April 2007.

6. Dr. Arjun Patil commenced Medical practice on
1.4.2006. He has prepared the following Receipts
and payments account for the years 31.3.2007.
[September, 2009] Receipts and payments
account for the year 31st March 2007
Receipts
To cash introduced (Capital fund)
To income from visits
To Receipts from Dispensary
To Miscellaneous receipts
To Interest on Investments
To Receipts from Operation fees
Amount
30000
40000
80000
1000
500
10000
Payments
By Furniture
By Honorarium to Doctor
By Equipments
By Purchase of Drugs
By Compounders Salary
By Rent of Dispensary
By Conveyance charges
By Stationary
By Operation Expenses
By Lighting
By Journals and Newspapers
By Telephone expenses
By Investments
By Balance c/d
161500 (Closing Balance)
Amount
40000
10000
50000
10000
12000
6000
2000
600
8000
400
800
500
7200
14000
161500
Adjustments.
•Rs. 5000 were still to be received on account of the
visits. Compounder salary of Rs. 3000 and Bill of
stationary Rs. 1000 and Rent of dispensary Rs. 1000
are outstanding. 25% amount of conveyance charges
were for private use. Stock of Drugs on hand was
estimated at Rs. 2000. Furniture and Equipments
are to be depreciated at 10%. Prepare Income and
expenditure account for the year ended 31st March
2007 and Balance sheet as on that date from the
above information.

7. •From the following Receipts and payments account of
Western Gymkhana for the year ended 31st March,
2007 and other information, prepare Income and
Expenditure account for the year ended on and a
Balance Sheet as at that date. (March 2008, modified)
Receipts
To Balance B/F
To Subscriptions for:
2006
2007
2008
To Donations
To Entertainment
Receipts
To Interest
To Entrance Fees
Rs.
1,040
85
4000
103
1200
876
81
1000
8385
Payments
By salaries
By Entertainment Expenses
By Electric charges
By General Expenses
By Rates and Taxes
By Investments
By Stationery and Printing
By Expenses of 2006
By Fixed Deposit
By Balance c/f
Rs.
1300
645
234
350
120
3000
241
600
1000
895
8385
•The Gymkhana has 450 members paying an annual
subscription of Rs. 10/- each.
•Rs. 20/- is still in arrears towards subscription for the
year 2006.
•Carry forward Rs. 20/- or rates paid in advance.
•Provide Rs. 200/- for salaries outstanding.
•The Gymkhana owns Land and Building standing in the
books of Rs. 15,000/- and Furniture standing at Rs. 1,150,
on which depreciation at 5% and 20% respectively is to be
written off.
•The Capital Fund as on 1st April, 2006 was Rs. 16,695/•50% of the Entrance Fees is to be capitalised. Donations
are capitalised.

8. •Following is the Receipts and Payments Account and
additional information of Kalpana Hospital, Sakri.
(March 2012)
Receipts and Payments account for the year ended 31st
March, 2010
Receipts
To Balance b/d
To Subscriptions
200 8 – 2009
2009 – 2010
2010 – 2011
To Donations
To Life Membership Fees
To Hospital Receipts
(Revenue)
Rs.
Payments
6000 By Medicines
By Honorarium to Doctors
7500 By Ambulance Maintenance
95000 By Hospital Equipments
15000 By Furniture Purchased
55000 By Fixed Deposits
25000 By Balance C/d
150000
353500
Rs.
10000
75000
44000
30000
25000
100000
69500
353500
Additional Information:
•Outstanding subscription for 200 9 – 2010 is amounted to
Rs. 5000.
•Hospital Equipments and Furniture were purchased on
1.10.2009 and both were to be depreciated at 20% p.a.
•Life membership fees are to be capitalized.
•Donations represent donations for Building fund.
•Staff salary for the current year is outstanding Rs. 7500.
•On 1.4.2009, the hospital had the following assets and
liabilities: Land and Building Rs. 250000, Investments Rs.
50000, Ambulance Rs. 1,02,500, Bank Loan Rs. 2,00,000.
•Capital fund as on 1.4.2009 was amounted to Rs.
2,16,000.
Prepare: Income and Expenditure Account for the year
ending 31st March, 2010 and the Balance Sheet as on that
date.

9. •From the following Receipts and Payments Accounts of
Sangameshwar Sports Club for the year ending 31st March,
2007 and Balance Sheet as on that date. (September 2010)
Receipts and Payments Account For the year ended on 31st March,
2007.
Receipts
To Balance (1-4-06)
Cash in Hand
Cash at Bank
To Subscriptions
To Donations
To Entrance fees
To interest
To Miscellaneous
Receipts
Rs.
15000
215000
125000
225000
125000
15000
15000
735000
Payments
By Salaries
By Wages
By Postage and Telegram
By Printing and Stationery
By Hire of Ground
By Sports Material
(Purchased on 1-1-07)
By Insurance
By Balance (31.3.07)
Cash in Hand
Cash at bank
Rs.
40,000
40,000
15,000
25,000
15,000
2,00,000
50,000
10000
340000
735000
Adjustment
•Subscriptions include Rs. 2000 received for the year 2005 – 2006
and subscription of Rs. 5000 is due to for current year but not
received yet.
•Assets as on 1st April, 2006 were as follows.
i.Building Rs. 300000
ii.Sports Material Rs. 250000
iii.Investments Rs. 150000
iv.Furniture Rs. 150000.
•Provide depreciation on Building, Sports Material and Furniture
at 5% p.a.
•Capitalise 50 % of Donations and Entrance Fees.
•Insurance of Rs. 5000 is paid in advance.
•Salaries are outstanding at Rs. 5000 and Interest Rs. 5000 is due
but not received.
Capital fund was Rs. 10,82,000 as on 1-4-2006. `

10. Following is the summary of Receipts and Payments of Jay
Bajrangbali Vyayam Shala, Ajara for the year ending
31.03.2007. (March 2010)
Receipts and payments Account for the year ended on 31st March
2007.
Receipts
Rs.
Payments
To Balance b/d
41600 By Salary
To Subscription
By Lighting
2005 – 06
4120 By General Expenses
2006 – 07
160000 By Entertainment Expenses
To Donation for
50000 By Taxes Paid
Building
By Printing and Stationery
To Receipts from 36440 By Expenses of 2005 – 2006
Entertainments
By Investment
To Interest
3240 By Fixed Deposit with Ajara
To Entrance Fees 45000 Urban Bank
By Balance C/d
340400
Rs.
55000
10000
15360
25800
5000
9440
24000
120000
40000
35800
340400
Adjustments:
•Jay Bajrangbali Vyayam Shala has 4500 members paying annual
subscription of Rs. 40 each.
•Provide for outstanding salary Rs. 5000.
•On 1.4.2006 the assets stood as under:
i.Land and building Rs. 60,000.
ii.Furniture Rs. 46000
Depreciate the above assets at 10% p.a.
•Interest on Investment Rs. 2000 is not received.
•Capital Fund was Rs. 1,27,720 on 1-4-2006..
•50% of the entrance fees is to be capitalised.
Prepare: Income and Expenditure account for the year ended 31st
march 2007 and balance sheet as on that date.

11. •The following is the Receipts and payments Account of
Modern Sports Club, Satara, for the year ended on 31st March,
2007. (March 2009)
Receipts and Payments Account for the year ended on 31st March,
2007.
Receipts
Rs.
Payments
Rs.
To Balance b/d
1490 By Upkeep of Garden
9500
To Subscription
13600 By wages
2360
To Entrance Fees
520 By Salary
7000
To Interest on
840 By Ground rent
210
Investments
By Printing
930
To Proceeds from
5180 By Postage
190
Matches
By Bank balance
5000
To Life member fees
5000 By Balance c/d
1440
26630
26630
Adjustments:
1. Ledger balances of the club as on 31.3.2006 were
Capital fund Rs. 66,430, Club house and ground Rs. 40,000,
Investments Rs. 18,640, furniture Rs. 6,400, and outstanding
subscription Rs. 600.
1.Printing includes Rs. 200, Upkeep of garden includes Rs.
500 and Subscription includes Rs. 400 for the previous year.
2.Entrance fees are to be capitalized.
3.The Rotary club of Satara owed Rs. 210 for the use of club
hall.
4.Provide 10% depreciation on furniture.
5.Subscriptions outstanding for the current year were Rs.
1,000.
Prepare _
Income and Expenditure account for the year ended 31st March,
2007 and Balance Sheet as on that date.

12. •From the following Balance sheet and Receipts and Payments
Account of Padmavati High School, Thane, prepare Income
and Expenditure account for the year ended 31-03-2007 and
balance sheet as on that date. (September 2008)
Balance sheet as on 31st March, 2006
Liabilities
Entrance fees
Capital fund
(Rs.)
Assets
30000 Furniture
519000 Computer laboratory
Library
Investment
Cash in hand
Cash at bank
Outstanding Tuition Fees
549000
(Rs.)
84000
100000
125000
200000
5000
15000
20000
549000
Receipts and Payment Account for the year ended 31st March, 2007
Receipts
To balance b/d
Cash in hand
Cash at bank
To Tuition Fees
To Term Fees
To Government Grant
(salary)
To Sundry receipts
To sale of old newspapers
To interest on investments
To Donation of library
Amount
(Rs.)
Payments
By Furniture purchased
5000 By Salaries
15000 By rent
400000 By Sundry expenses
120000 By Stationery
104500 By Annual gathering
expenses
11000 By repairs of buildings
500 By Insurance
10000 By Balance c/d
150000 Cash in Hand
Cash at Bank
816000
Amount
(Rs.)
52000
300000
140000
27000
49000
24000
32500
20000
44500
127000
816000
Adjustments:
•Tuition fees receivable Rs. 150000
•Salary still payable Rs. 150000
•Rent paid in advance Rs. 20000
•Insurance premium is paid for one year ending 30-9-07
•Depreciate furniture and library at 10% and computer laboratory at 20%.
Depreciation is to be charged on the closing balance of assets.

13. Following is the Balance sheet and receipts and payments
account of the Memorial Hospital, Sawantwadi. Prepare
Income and expenditure account for the year ended on
31.3.2010 and the balance sheet as on that date. (March
2011)
Liabilities
Capital fund
Outstanding
Salaries
Medical bill unpaid
Amount
Assets
(Rs.)
10,04,000 Cash in hand
Cash at bank
22000 Land and building
6000 Furniture
Equipments
Outstanding subscriptions
1032000
Amount
(Rs.)
6000
34000
800000
70000
120000
2000
1032000
Receipt and payments account For the year ending 31.3.2010
Receipts
To balance b/d
Cash in hand
Cash at bank
To subscription (includes 2000
of L.Y.]
To Sale of furniture
(Book value Rs. 30000)
To Donations (revenue)
To Life membership fees
Amoun
t
(Rs.)
6000
34000
130000
20000
44000
25000
Payments
Amount
(Rs.)
By Salaries (including of the
previous year)
By Medicines
By Equipments purchased
By Taxes
By General expenses
By Balance c/d
Cash in hand
Cash at bank
259000
Consider the following adjustments.
a.Outstanding subscription Rs. 12000.
b.Capitalise the amount of membership fees.
c.Prepaid taxes Rs. 500.
d.Outstanding Salary Rs. 12000.
e.Write off depreciation Rs. 20000 from Land and
Building and Rs. 30000 from Equipments.
f.Outstanding Medicine bill as on 1.4.09 is still due.
110000
52000
20000
3000
8600
15400
50000
259000

14. From the following balance Sheet and Receipts and Payments account
of Nanavati Hospital, Bombay, prepare Income and Expenditure
account for the year ending on 31st March, 2007 and the Balance sheet
as on that date. Balance Sheet as on 1st April, 2006
Liabilities
Salaries Unpaid
Medicines Bill Unpaid
Capital Fund
Amount
2000
1500
383000
Assets
Cash
Securities
Furniture
Land and Buildings
Equipments
Subscription Due
Interest Accrued
386500
Amount
11000
150000
4000
200000
15000
5000
1500
386500
Receipts and Payment Account for the year ended 31st March, 2007
Receipts
To Cash balance b/f
To subscription
To Interest
(Rs. 1500/- last year)
To Donations(Revenue)
To Life Membership Fee
RS.
Payments
11000 By Furniture (purchased on 1-430000 2006)
5000 By Salaries (including Rs. 2000/- of
last year)
4300 By Equipment (purchased on 1-4-06)
10000 By Dispensary expenses
By Medicines
By Taxes
By Cash balance c/f
60300
Rs.
1900
23000
7500
4700
5500
500
17200
60300
Adjustments.
•Capitalise the amount of life membership fees.
•Interest earned but not received Rs. 1,000/•Subscription include Rs.1000/- for 2008 and outstanding
subscription for 31st march, 2007 is 4,200
•Unpaid salary for the year 2007 is Rs. 2500/•Provide for depreciation on furniture 10%, Land and Building 5%,
Equipments 20%.
Prepaid taxes Rs. 100/-

15. The Balance Sheet as at 1st April, 2006 and the Receipts and Payments
account for the year ended 31st March, 2007 of the Young Sports Club, Dadar
are as under. Young Sports Club – Balance Sheet as on 1st April, 2006
Liabilities
Amount Assets
Capital Fund
Outstanding Expenses:
Salaries 400
Printing 300
Income and
Expenditure A/c
30000
700
23300
Building
Furniture
Entrance Fee receivable
Subscriptions Fee
receivable
Sports Material &
Equipments
Cash in Hand
Cash at Bank
54000
Amou
nt
9500
5000
200
800
28000
4200
6300
54000
Young Sports Club, Dadar, Receipts and Payments A/c for the year ending 31st March, 2007
Receipts
To Opening Balance
Cash at bank
4200
Cash in Hand
6300
To Subscriptions
To Entrance Fees
To Receipts from Cricket
Tournament
To Interest on Bank A/c
Amount Payments
10500
18000
4000
14520
300
47320
By Cricket Tournament
Expenditure
By Printing & Stationery
By Salaries & Honorarium
By Repairs to Building
By Newspapers and
Periodicals
By Advertising Expenses
By Insurance
By Investments
By Closing Balance
Cash in Hand 5280
Cash in Bank 6450
Amou
nt
16460
860
1600
500
470
300
400
15000
11730
47320
You are also given the following additional information.
1.Subscriptions of the amount of Rs. 800 were receivable as on 31st March,
2007 .Subscriptions Rs. 200 and Entrance Fees Rs. 300 were received in
advance. Outstanding Expenses were: Salaries and Honorarium Rs. 100;
Insurance Rs. 50; Cricket Tournament Expenses Rs. 250. You are required
to prepare Income & Expenditure account for the year ending 31st March,
2007 and a Balance Sheet as on that date.