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CMA Foundation · Fundamentals of Financial and Cost Accounting · Financial Statements of a Not-for-Profit Organisation

Lakshmi Sports Club had an opening cash balance of ₹12,000 and bank balance of ₹48,000. During the year it received subscriptions ₹1,80,000, donation for building fund ₹50,000 and interest on investments ₹20,000. It paid salaries ₹90,000, purchased furniture ₹40,000 and paid sundry expenses ₹30,000. What is the total of the Receipts side of its Receipts and Payments Account?

The receipts side totals ₹3,10,000. It includes opening cash ₹12,000, opening bank ₹48,000, subscriptions ₹1,80,000, building fund donation ₹50,000 and interest ₹20,000. Opening balances and capital receipts are both shown, because the account records all cash movements.

  1. A₹2,50,000
  2. B₹3,10,000Correct
  3. C₹3,50,000
  4. D₹1,90,000

Explanation

The receipts side includes opening balances plus all receipts: 12,000 + 48,000 + 1,80,000 + 50,000 + 20,000 = ₹3,10,000. Option A omits the opening balances. Payments (₹1,60,000) are not added, so the closing balance would be ₹1,50,000.

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