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CA Foundation · Accounting · Financial Statements of Not-for-Profit Organisations

Vidya Mandir Society's Receipts and Payments Account for the year ended 31 March 2025 shows opening cash ₹15,000 and opening bank ₹85,000. Receipts during the year were ₹6,40,000 including ₹40,000 of sale of old investments. Payments were ₹5,90,000 including ₹1,00,000 for purchase of new furniture. What is the closing cash and bank balance in total?

Closing cash and bank balance is ₹1,50,000. It equals opening balances of ₹1,00,000 plus total receipts of ₹6,40,000 minus total payments of ₹5,90,000. Capital items are already included in those totals, so they must not be adjusted again.

  1. A₹1,50,000Correct
  2. B₹1,10,000
  3. C₹1,00,000
  4. D₹2,50,000

Explanation

Closing balance = opening balances + total receipts - total payments = (15,000 + 85,000) + 6,40,000 - 5,90,000 = 1,00,000 + 50,000 = ₹1,50,000. Capital items such as sale of investments and purchase of furniture are already inside the totals. Deducting furniture again would give ₹50,000 less, which is wrong.

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