Class 11 Accountancy NPO Project: Complete Club Accounts Guide

A Class 11 Accountancy NPO project can become one of the most satisfying projects in your file. You are not merely arranging figures into accounts. You are showing how a club collects small contributions from many people and turns them into services that everyone can use.

That story gives every account a purpose.

The Receipts and Payments Account shows where cash moved. The Income and Expenditure Account shows what belonged to the year. The Balance Sheet shows what the club owns, what it owes, and the fund it has built over time.

This guide takes you through the complete project using a fictional community club. You will get a logical file order, a set of 19 connected transactions, adjustment workings, final accounts that balance, findings, and viva questions.

What Is an NPO Accountancy Project?

An NPO, or not-for-profit organisation, is formed mainly to provide a service rather than to distribute profit to owners. Clubs, libraries, sports associations, cultural societies, welfare groups, and charitable institutions are familiar examples.

They still receive money, pay expenses, buy assets, collect subscriptions, and prepare accounts. Their language is simply different from that of a trading business.

Trading business	Not-for-profit organisation
Capital	Capital Fund or General Fund
Profit	Surplus
Loss	Deficit
Profit and Loss Account	Income and Expenditure Account
Cash Book summary	Receipts and Payments Account

A strong NPO project should show that you understand both the movement of cash and the income or expense that belongs to the current year.

The Complete Project Flow

Use this order to keep your file easy to follow:

1. Cover page
2. Certificate
3. Acknowledgement
4. Index
5. Objectives of the project
6. Introduction to not-for-profit organisations
7. Profile and purpose of the club
8. Assumptions and accounting year
9. Opening Balance Sheet
10. List of transactions
11. Journal entries
12. Ledger accounts
13. Trial Balance
14. Cash Book
15. Receipts and Payments Account
16. Adjustment working notes
17. Income and Expenditure Account
18. Closing Balance Sheet
19. Charts and interpretation
20. Findings and conclusion
21. Bibliography
22. Viva questions

A Ready Case Study: Udaan Community Club

We will build the project around Udaan Community Club, a fictional neighbourhood organisation.

The club was formed to give local children and adults an affordable place to read, play indoor and outdoor games, attend weekend workshops, and participate in community events. It is managed by an elected committee. Members pay an annual subscription, while well-wishers may give ordinary or purpose-specific donations.

Its accounting year is 1 April 2025 to 31 March 2026.

You may use this model to understand the sequence, but make your submission your own. Change the club name, purpose, figures, narration, and presentation after checking them with your teacher.

Objectives of Udaan Community Club

• To maintain a small reading room and lending library.
• To provide sports equipment to members.
• To organise an annual community tournament.
• To conduct skill-sharing and cultural activities.
• To create a dedicated fund for a larger activity room.
• To maintain clear records of every receipt and payment.

Opening Balance Sheet

Before recording the year’s activities, establish the club’s opening position.

Balance Sheet of Udaan Community Club as at 1 April 2025

Liabilities	Rs.	Assets	Rs.
Capital Fund	1,85,000	Cash in Hand	5,000
Salaries Outstanding	10,000	Cash at Bank	45,000
Subscriptions Received in Advance	5,000	Furniture	80,000
		Sports Equipment	60,000
		Subscriptions Outstanding	8,000
		Prepaid Rent	2,000
Total	2,00,000	Total	2,00,000

Notice the opening adjustments already waiting inside this statement:

• Rs. 8,000 is due from members for the previous year.
• Rs. 5,000 was received last year but belongs to the current year.
• Rs. 10,000 of salary was due at the beginning.
• Rs. 2,000 of rent had been prepaid for the current year.

These figures must not disappear when you prepare the final accounts.

Nineteen Transactions for the Project

The following transactions create a complete and manageable club story.

No.	Transaction during 2025-26	Amount (Rs.)	Why it matters
1	Collected subscriptions outstanding from the previous year	8,000	Clears the opening receivable
2	Collected subscriptions for the current year	1,64,000	Regular revenue receipt
3	Collected subscriptions in advance for next year	8,000	Creates a closing liability
4	Received an ordinary donation	30,000	Used for general activities
5	Received entrance fees from new members	15,000	Capitalised in this case study
6	Received a donation for the activity-room building fund	50,000	Restricted to a specific purpose
7	Received interest on bank deposit	6,000	Revenue income
8	Sold old newspapers	2,000	Miscellaneous revenue income
9	Paid salaries, including the opening amount due	72,000	Contains a prior-year liability
10	Paid rent	36,000	Needs a prepaid-rent adjustment
11	Purchased sports supplies for use during the year	20,000	Revenue expense
12	Paid electricity charges	18,000	Needs an outstanding-expense adjustment
13	Paid stationery and printing expenses	8,000	Revenue expense
14	Paid annual tournament expenses	12,000	Revenue expense
15	Purchased furniture	30,000	Capital payment and fixed asset
16	Purchased sports equipment	25,000	Capital payment and fixed asset
17	Invested the building-fund donation in a fixed deposit	50,000	Creates a fund investment
18	Paid insurance	6,000	Revenue expense
19	Paid miscellaneous expenses	5,000	Revenue expense

The total subscription cash in the Receipts and Payments Account will be:

Rs. 8,000 + Rs. 1,64,000 + Rs. 8,000 = Rs. 1,80,000

How to Pass the Main Journal Entries

The exact number of entries depends on whether your class records receipts directly through income accounts or first uses separate control accounts. The following entry map keeps the logic clear.

Transaction	Debit	Credit
Previous-year subscriptions collected	Bank	Subscriptions Outstanding
Current-year subscriptions collected	Bank	Subscriptions Income
Next-year subscriptions collected early	Bank	Subscriptions Received in Advance
Ordinary donation received	Bank	Ordinary Donation
Entrance fees received	Bank	Entrance Fees
Building-fund donation received	Bank	Building Fund
Interest received	Bank	Interest Income
Old newspapers sold	Cash	Sale of Old Newspapers
Opening salary liability paid	Salaries Outstanding	Bank
Current salary paid	Salaries	Bank
Rent paid	Rent	Bank
Sports supplies purchased	Sports Supplies Expense	Bank
Electricity paid	Electricity	Bank
Furniture purchased	Furniture	Bank
Sports equipment purchased	Sports Equipment	Bank
Building-fund investment purchased	Building Fund Investment	Bank

The year-end adjustment entries will include:

Subscriptions Outstanding A/c Dr.              12,000
    To Subscriptions Income A/c                          12,000

Subscriptions Received in Advance A/c Dr.       5,000
    To Subscriptions Income A/c                           5,000

Salaries A/c Dr.                                 6,000
    To Salaries Outstanding A/c                           6,000

Electricity A/c Dr.                              2,000
    To Electricity Outstanding A/c                        2,000

Rent A/c Dr.                                     2,000
    To Prepaid Rent A/c                                   2,000

Prepaid Rent A/c Dr.                             3,000
    To Rent A/c                                            3,000

For depreciation:

Depreciation on Furniture A/c Dr.               11,000
    To Furniture or Accumulated Depreciation A/c         11,000

Depreciation on Sports Equipment A/c Dr.         8,500
    To Sports Equipment or Accumulated Depreciation A/c   8,500

This case study assumes that the new fixed assets were available for the full year and that depreciation is charged at 10 per cent on cost. If you choose different purchase dates, calculate depreciation for the period of use.

Ledger and Trial Balance Check

After journalising, post each entry to its ledger account. Every debit in the journal must reach the debit side of one ledger account, and every credit must reach the credit side of another.

Your ledger should include at least:

• Cash Account and Bank Account
• Subscriptions Income Account
• Subscriptions Outstanding Account
• Subscriptions Received in Advance Account
• Ordinary Donation Account
• Entrance Fees Account
• Building Fund Account
• Building Fund Investment Account
• each expense account
• Furniture Account
• Sports Equipment Account
• outstanding expense accounts
• Prepaid Rent Account
• Capital Fund Account

Before year-end adjustments, the Trial Balance for this illustration is:

Trial Balance of Udaan Community Club as at 31 March 2026, before adjustments

Account	Debit (Rs.)	Credit (Rs.)
Cash in Hand	6,000
Cash at Bank	45,000
Furniture	1,10,000
Sports Equipment	85,000
Prepaid Rent	2,000
Building Fund Investment	50,000
Salaries	62,000
Rent	36,000
Sports Supplies Expense	20,000
Electricity	18,000
Stationery and Printing	8,000
Tournament Expenses	12,000
Insurance	6,000
Miscellaneous Expenses	5,000
Capital Fund		1,85,000
Subscriptions Received in Advance		13,000
Building Fund		50,000
Subscriptions Income		1,64,000
Ordinary Donation		30,000
Entrance Fees		15,000
Interest Income		6,000
Sale of Old Newspapers		2,000
Total	4,65,000	4,65,000

The opening salary liability and opening subscription receivable no longer appear because they were paid and collected during the year. The opening advance subscription of Rs. 5,000 is still included in the Rs. 13,000 credit balance until the year-end adjustment transfers it to current-year income.

Cash Book and Receipts and Payments Account

The Cash Book records cash and bank transactions in date order. The Receipts and Payments Account summarises similar cash items for the year.

The key question is simple:

Did cash or bank move?

If yes, the item belongs in the Cash Book and usually appears in the Receipts and Payments Account, whether it is capital or revenue and whether it belongs to this year or another year.

Receipts and Payments Account for the year ended 31 March 2026

Receipts	Rs.	Payments	Rs.
Balance b/d: Cash in Hand	5,000	Salaries	72,000
Balance b/d: Cash at Bank	45,000	Rent	36,000
Subscriptions	1,80,000	Sports Supplies	20,000
Ordinary Donation	30,000	Electricity	18,000
Entrance Fees	15,000	Stationery and Printing	8,000
Building-Fund Donation	50,000	Tournament Expenses	12,000
Interest on Bank Deposit	6,000	Furniture	30,000
Sale of Old Newspapers	2,000	Sports Equipment	25,000
		Building Fund Investment	50,000
		Insurance	6,000
		Miscellaneous Expenses	5,000
		Balance c/d: Cash in Hand	6,000
		Balance c/d: Cash at Bank	45,000
Total	3,33,000	Total	3,33,000

This account includes furniture, sports equipment, the building-fund donation, past-year subscriptions, and next-year subscriptions because all of them involved cash.

It does not include depreciation, closing outstanding expenses, or closing subscriptions due because no cash moved for those items during the year.

If you want to strengthen this distinction before preparing your file, read the guide to Receipts and Payments Account vs Income and Expenditure Account.

The Adjustment Sheet That Prevents Most Mistakes

Do not jump directly from the Receipts and Payments Account to the Income and Expenditure Account. Prepare a small adjustment sheet first.

Additional information at 31 March 2026:

• Subscriptions outstanding: Rs. 12,000
• Subscriptions received in advance: Rs. 8,000
• Salaries outstanding: Rs. 6,000
• Electricity outstanding: Rs. 2,000
• Rent prepaid: Rs. 3,000
• Depreciation on furniture: 10 per cent on Rs. 1,10,000
• Depreciation on sports equipment: 10 per cent on Rs. 85,000
• Entrance fees are to be capitalised
• Building-fund donation and its investment remain linked to the specific fund

Use a three-destination rule for every adjustment:

Adjustment	Income and Expenditure Account	Closing Balance Sheet
Closing subscription outstanding	Add to subscription income	Asset
Closing subscription received in advance	Deduct from subscription income	Liability
Closing salary outstanding	Add to salary expense	Liability
Closing electricity outstanding	Add to electricity expense	Liability
Closing prepaid rent	Deduct from rent expense	Asset
Depreciation	Expense	Reduces asset value

Subscription Working Note

Subscription is the heart of this project because the cash receipt contains three different years.

Use the complete formula:

Subscription income for the current year
= Subscription cash received
+ Closing subscriptions outstanding
+ Opening subscriptions received in advance
- Opening subscriptions outstanding
- Closing subscriptions received in advance

Now insert the figures:

Particulars	Rs.
Subscriptions received during the year	1,80,000
Add: Outstanding at the end	12,000
Add: Advance at the beginning	5,000
Less: Outstanding at the beginning	(8,000)
Less: Advance at the end	(8,000)
Subscription income for 2025-26	1,81,000

The same answer can be checked from the current-year story:

Current-year cash collected                  Rs. 1,64,000
Add: Cash collected last year for this year  Rs.    5,000
Add: Current-year amount still due            Rs.   12,000
Current-year subscription income              Rs. 1,81,000

Both routes agree. That is a strong working-note check.

For more practice with all four opening and closing adjustments, use the detailed guide to subscription adjustments in not-for-profit organisation accounts.

Expense Working Notes

Salaries

The cash payment includes an opening liability, while a new amount remains unpaid at the end.

Salary paid                                  Rs. 72,000
Add: Closing salary outstanding              Rs.  6,000
Less: Opening salary outstanding             Rs. 10,000
Salary expense for the current year          Rs. 68,000

Rent

The opening prepaid amount belongs to the current year, while the closing prepaid amount belongs to the next year.

Rent paid                                    Rs. 36,000
Add: Opening prepaid rent                    Rs.  2,000
Less: Closing prepaid rent                   Rs.  3,000
Rent expense for the current year            Rs. 35,000

Electricity

Electricity paid                             Rs. 18,000
Add: Closing electricity outstanding         Rs.  2,000
Electricity expense for the current year     Rs. 20,000

Depreciation

Furniture: Rs. 1,10,000 x 10%                Rs. 11,000
Sports equipment: Rs. 85,000 x 10%           Rs.  8,500

Depreciation appears only in the Income and Expenditure Account and as a reduction from the relevant asset. It does not appear in the Receipts and Payments Account because no cash is paid when depreciation is recorded.

Income and Expenditure Account

This account contains only revenue income and revenue expenses belonging to the current year. It also includes non-cash expenses such as depreciation.

Income and Expenditure Account for the year ended 31 March 2026

Expenditure	Rs.	Income	Rs.
Salaries	68,000	Subscriptions	1,81,000
Rent	35,000	Ordinary Donation	30,000
Sports Supplies	20,000	Interest on Bank Deposit	6,000
Electricity	20,000	Sale of Old Newspapers	2,000
Stationery and Printing	8,000
Tournament Expenses	12,000
Insurance	6,000
Miscellaneous Expenses	5,000
Depreciation on Furniture	11,000
Depreciation on Sports Equipment	8,500
Surplus, excess of income over expenditure	25,500
Total	2,19,000	Total	2,19,000

Why are some cash items missing here?

• Furniture and sports equipment are assets, not current-year expenses.
• The building-fund donation is restricted to a specific purpose.
• The related fixed deposit is an asset.
• Entrance fees are capitalised under the assumption chosen for this case study.
• Opening and closing cash balances are financial-position items, not income.

Closing Capital Fund

The opening Capital Fund grows through capitalised receipts and the current year’s surplus.

Opening Capital Fund                         Rs. 1,85,000
Add: Entrance fees capitalised               Rs.   15,000
Add: Surplus for the year                    Rs.   25,500
Closing Capital Fund                         Rs. 2,25,500

If your question gives a different instruction for entrance fees, follow that instruction. The treatment should be stated clearly in your assumptions and used consistently.

Closing Balance Sheet

The final Balance Sheet brings the entire project together.

Balance Sheet of Udaan Community Club as at 31 March 2026

Liabilities	Rs.	Assets	Rs.
Capital Fund	2,25,500	Cash in Hand	6,000
Building Fund	50,000	Cash at Bank	45,000
Salaries Outstanding	6,000	Subscriptions Outstanding	12,000
Electricity Outstanding	2,000	Prepaid Rent	3,000
Subscriptions Received in Advance	8,000	Furniture: Rs. 1,10,000 less Rs. 11,000	99,000
		Sports Equipment: Rs. 85,000 less Rs. 8,500	76,500
		Building Fund Investment	50,000
Total	2,91,500	Total	2,91,500

The matching total is not an accident. It is the final proof that the cash summary, adjustment workings, income statement, and financial position have been connected correctly.

What Charts Should You Add?

Charts should explain something. They should not merely fill a page.

Expense pie chart

Use the adjusted expenses from the Income and Expenditure Account:

Expense	Rs.
Salaries	68,000
Rent	35,000
Sports Supplies	20,000
Electricity	20,000
Stationery and Printing	8,000
Tournament Expenses	12,000
Insurance	6,000
Miscellaneous Expenses	5,000
Depreciation on Furniture	11,000
Depreciation on Sports Equipment	8,500

Receipt bar chart

Compare major cash receipts such as subscriptions, ordinary donations, entrance fees, building-fund donations, and interest.

Label each chart clearly and add one or two sentences below it. For example:

Findings You Can Write in the Project

Findings should come from your own figures. Avoid vague lines such as “I learned a lot from this project.”

You can write:

1. Subscription income of Rs. 1,81,000 is the club’s main recurring income.
2. Salary is the largest adjusted expense at Rs. 68,000.
3. The club earned a surplus of Rs. 25,500 during the year.
4. Cash receipts from subscriptions were not equal to subscription income because the cash included amounts for three accounting years.
5. The club invested the Rs. 50,000 building-fund donation instead of using it for ordinary expenses.
6. Furniture and sports equipment were treated as assets, while depreciation of Rs. 19,500 was charged as the year’s expense.
7. The closing Balance Sheet total is Rs. 2,91,500 on both sides.
8. The club ended the year with Rs. 51,000 in cash and bank balances.

A Short Conclusion for the File

You may adapt this conclusion:

The project helped me understand how a not-for-profit organisation records money while keeping its service purpose at the centre. The Receipts and Payments Account summarised cash movement, while the Income and Expenditure Account measured the current year’s surplus after adjustments. The Balance Sheet then showed the club’s closing assets, liabilities, specific fund, and Capital Fund. The most important lesson was that cash received is not always income, and cash paid is not always an expense.

How to Make the Project Look Genuine and Thoughtful

• Use one consistent club name on every page.
• Keep the same accounting year throughout the file.
• Number transactions before writing journal entries.
• Cross-reference journal folio and ledger folio columns.
• Show every major adjustment in a working note.
• Use the same figures in the accounts, charts, findings, and viva answers.
• Mark invented figures as a simulated or teacher-approved case study.
• Do not present made-up bills, signatures, or receipts as genuine documents.
• Add page numbers only after the final order is fixed.
• Keep headings neat, but give more attention to accuracy than decoration.

What to Include in the Bibliography

Keep the bibliography honest and simple. List only material you actually used, such as:

• your prescribed Accountancy textbook and chapter name
• class notes provided by your teacher
• project instructions issued by your school
• any reference book used to check formats or adjustments

You can also state that the club name and financial figures were created as a simulated case study. Do not list websites or books that you did not consult.

Common Mistakes to Avoid

Treating all receipts as income

The purchase of an asset, a special-purpose donation, and a receipt for next year can all affect cash without becoming current-year income.

Copying subscription cash into the Income and Expenditure Account

Rs. 1,80,000 was received, but Rs. 1,81,000 belongs to the current year after adjustments.

Forgetting the second effect of an adjustment

Outstanding salary increases expense and creates a liability. Outstanding subscription increases income and creates an asset.

Charging an asset purchase as an expense

The Rs. 30,000 furniture purchase and Rs. 25,000 sports-equipment purchase belong in the Receipts and Payments Account and Balance Sheet. Only depreciation belongs in the Income and Expenditure Account.

Mixing a specific fund with general income

The building-fund donation is meant for a particular purpose. Keep the fund and related investment visible in the Balance Sheet.

Writing findings before finishing the accounts

Your findings must agree with the final figures. Write them only after the Balance Sheet balances.

Viva Preparation Checklist

Be ready to answer these questions without memorising long definitions:

• Why did you choose a community club?
• What is the main objective of your club?
• Why is subscription cash different from subscription income?
• Why is an amount received in advance a liability?
• Why is an outstanding subscription an asset?
• Why does depreciation not appear in the Receipts and Payments Account?
• Why is furniture not charged fully as an expense?
• How did you calculate the surplus?
• Why is the building-fund donation kept separate?
• How did the surplus affect the Capital Fund?
• Which expense was highest, and what does that suggest?
• What limitation does your simulated case study have?

Frequently Asked Questions

1. How many transactions should an NPO project contain?

A detailed case study should contain enough transactions to cover subscriptions, donations, expenses, assets, and adjustments. This illustration uses 19 cash transactions. Follow the minimum and format given by your school or teacher.

2. Can I use a fictional club for my Accountancy project?

Yes, if your teacher permits a simulated case study. State clearly that the club and figures are fictional. A well-designed fictional case can be better than unreliable real data because every figure can be explained and checked.

3. Is a Receipts and Payments Account prepared on cash basis?

Yes. It records cash and bank receipts and payments, including capital and revenue items and amounts related to previous, current, or future years.

4. Is an Income and Expenditure Account prepared on accrual basis?

Yes. It includes only revenue income and revenue expenses belonging to the current accounting year, whether or not the cash was received or paid during that year.

5. Why is subscription received in advance a liability?

The club has received cash but still owes membership service for a future period. Until that period arrives, the amount does not belong to current-year income.

6. Why is outstanding subscription an asset?

It is income already earned from members but not yet collected. The club has a right to receive it, so it appears as an asset.

7. Where does the surplus go?

The surplus is added to the Capital Fund. A deficit would normally reduce the Capital Fund.

8. Does depreciation appear in the Receipts and Payments Account?

No. Depreciation does not involve a cash payment when it is recorded. It is charged to the Income and Expenditure Account and reduces the value of the related asset in the Balance Sheet.

9. Should every donation be treated in the same way?

No. An ordinary donation available for general activities may be treated as revenue income under the chosen accounting policy. A donation for a specific purpose is normally added to the relevant fund. Always follow the information given in the question.

10. What should I write in the findings section?

Write conclusions supported by your accounts, such as the main income source, the largest expense, the amount of surplus, the effect of adjustments, the closing cash position, and the closing Balance Sheet total.

11. How can I check whether my project is internally correct?

Check that journal debits equal credits, the Trial Balance agrees, both sides of the Receipts and Payments Account match, the surplus calculation is correct, every adjustment has two effects, and the closing Balance Sheet balances.

12. What is the best way to prepare for the viva?

Explain the story behind your own figures. If you know why Rs. 1,80,000 of subscription cash became Rs. 1,81,000 of subscription income, why the building fund stayed separate, and why depreciation reduced the assets, you can answer most viva questions naturally.