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प्रश्न
From the following Receipts and Payments Account “K.B.P. Engineering College” Nashik for the year ending on 31.03.2019 and additional information, prepare Income and Expenditure Account for the year ending 31.03.2019 and Balance Sheet as on that date.
| Dr | Receipts and payments Account for the year ending 31.03.2019. | Cr | |||
| Receipts | Amount ₹ | Payments | Amount ₹ | ||
| To Balance b/d | By Salaries to Teaching Staff | 11,70,000 | |||
| Cash in Hand | 18,000 | By Electricity Charges | 55,000 | ||
| Cash at Bank | 1,00,400 | By Books | 61,000 | ||
| To Interest | 55,000 | By Furniture | 51,000 | ||
| To Subscriptions | 28,300 | By Stationery | 21,850 | ||
| To Life Membership fees | 25,000 | By Fixed Deposit (31.03.2019) | 8,50,000 | ||
| To Donation | 7,00,000 | By Balance c/d | |||
| To Tuition Fees | 12,30,000 | Cash in Hand | 16,650 | ||
| To Term Fees | 2,00,800 | Cash at Bank | 2,00,000 | ||
| To Sundry Receipts | 8,000 | ||||
| To Admission Fees (Revenue) | 60,000 | ||||
| 24,25,500 | 24,25,500 | ||||
Additional Information :
| Particulars | 01.04.2018 ₹ | 31.03.2019 ₹ |
| Books | 6,00,000 | 6,00,000 |
| Furniture | 3,19,000 | 3,00,000 |
| Building Fund | 10,00,000 | ? |
| Fixed Deposit | 9,10,000 | ? |
| Capital Fund | 9,47,400 | ? |
1) 50% of Donation are for Building Fund and the balance is to be treated Revenue Income.
2) Outstanding subscription ₹ 5,300
3) Life membership fees are to capitalised
उत्तर
| Dr | In the books of K.B.P. Engineering College, Nashik Income and Expenditure Account for the year ended on 31st March, 2019 |
Cr | |||||
| Expenditure | Amount ₹ | Amount ₹ | Income | Amount ₹ | Amount ₹ | ||
| To Salaries to Teaching Staff | 11,70,000 | By Interest | 55,000 | ||||
| To Electricity Charges | 55,000 | By Subscription | 28,300 | ||||
| To Stationery | 21,850 | Add: Outstanding Subscription | 5,300 | 33,600 | |||
| To Depreciation | By Donations | 7,00,000 | |||||
| Furniture | 70,000 | Less: 50 % for Building Fund | 3,50,000 | 3,50,000 | |||
| Books | 61,000 | 1,31,000 | By Tuition Fees | 12,30,000 | |||
|
To Surplus (Excess of income over expenditure) |
5,59,550 | By Term Fees | 2,00,800 | ||||
|
|
By Sundry receipts | 8,000 | |||||
|
|
By Admission Fees | 60,000 | |||||
| 19,37,400 | 19,37,400 | ||||||
| Balance Sheet as on 31st March, 2019 | |||||
| Liabilities | Amount ₹ |
Amount ₹ |
Assets | Amount ₹ |
Amount ₹ |
| Capital Fund | 9,47,400 | Outstanding Subscription | 5300 | ||
| Add: Surplus | 5,59,550 | Books | 6,00,000 | ||
| Add: Life Membership Fees (Capitalised) | 25,000 | 15,31,950 | Add: Purchases | 61,000 | |
| Building Fund | 10,00,000 | 6,61,000 | |||
| Add: 50% of Donations | 3,50,000 | 13,50,000 | Less: Depreciation | 61,000 | 6,00,000 |
| Furniture | 3,19,000 | ||||
| Add: Purchase | 51,000 | ||||
| 3,70,000 | |||||
| Less: Depreciation | 70,000 | 3,00,000 | |||
| Fixed Deposits (Old) | 8,50,000 | ||||
| Cash in Hand | 16,650 | ||||
| Cash in Bank | 2,00,000 | ||||
| Fixed Deposits (New) | 9,10,000 | ||||
| 28,81,950 | 28,81,950 | ||||
Working Notes :
(1) Life membership fees are to be capitalised, means add entire amount in capital fund.
(2) 50% of Donations of ₹ 7,00,000 i.e., ₹ 3,50,000 is to be added to the Building Fund, and the remaining amount of donation i.e., ₹ 3,50,000 is credited to Income and Expenditure A/c.
(3) The depreciation on Fixed assets is calculated by using following formula:
Depreciation = Opening balance + Purchases – Closing value
∴ Depreciation on Books = 6,00,000 + 61,000 – 6,00,000
= 6,61,000 – 6,00,000
= ₹ 61,000
∴ Depreciation on Furniture = 3,19,000 + 51,000 – 3,00,000
= 3,70,000 – 3,00,000
= ₹ 70,000
(4)
| Fixed deposit : | |
| Opening balance given | = ₹ 9,10,000 |
| Fixed deposit (31 – 03 – 2019) (Newly purchased) | = ₹ 8,50,000 |
| ∴ Total fixed deposits | = ₹ 17,60,00 |
(5) Admission Fees ₹ 60,000 is recorded on the credit side of Income and Expenditure A/c because it is taken as revenue income.
APPEARS IN
संबंधित प्रश्न
Answer in one sentence only.
What is Capital Fund?
Income and Expenditure Account is a ________ Account.
Write the word/phrase/term, which can substitute the following sentence.
Donation received for a specific purpose.
Write the word/phrase/term, which can substitute the following sentence.
The credit balance of Income and Expenditure Account.
Income and Expenditure Account is a ______ account.
The transactions recorded in Income and Expenditure Account are related only to the _______ year.
Answer in one sentence only.
What is a Subscription?
Complete the Table:
| Sr. No. | Income (₹) | Expenditure (₹) | Surplus/Deficit (₹) |
| 1. | 10,000 | ? | 5,000 (Deficit) |
| 2. | 8,000 | ? | 4,000 (Surplus) |
| 3. | ? | 15,000 | 8,000 (Surplus) |
| 4. | 7,500 | 9,000 | ? |
| 5. | 15,000 | 11,300 | ? |
Complete the Table:
Salaries paid during the year
| Sr. No |
Total ₹ | Prepaid/Outstanding | ₹ | Expenditure for the year |
| 1 | 1,100 | Prepaid | 100 | ? |
| 2 | 2,700 | Prepaid | ? | 2,000 |
| 3 | 8,250 | Prepaid | ? | 6,650 |
| 4 | 1,200 | Outstanding | 200 | ? |
| 5 | ? | Outstanding | 600 | 5,100 |
| 6 | 1,800 | Outstanding | ? | 2,200 |
Complete the Table:
Rent received during the year
| Sr.No | Total Received ₹ | Rent received in Advance/Accrued | ₹ | Income for the year ₹ |
| 1 | 1,300 | Received in Advance | 200 | ? |
| 2 | ? | Received in Advance | 400 | 1,400 |
| 3 | 2,650 | Received in Advance | ? | 2,000 |
| 4 | ? | Accrued | 290 | 3,190 |
| 5 | 1,700 | Accrued | ? | 2,150 |
| 6 | 2,600 | Accrued | 500 | ? |
Find odd one:
| Dr | Receipts and Payments Account for the year ending 31.03.2018. | Cr | |||||
| Receipts | Amt. ₹ | Amt. ₹ | Payments | Amt.₹ | Amt. ₹ | ||
| To Subscriptions | |||||||
| 2016 - 17 | 2,000 | ||||||
| 2017 - 18 | 60,000 | ||||||
| 2018 - 19 | 4,500 | 66,500 | |||||
Adjustments :
Subscription Outstanding for the year 2017 - 18 is ₹ 6,000.
During previous year Subscription received in advance for 2017 - 18 is ₹ 2,000.
Outstanding subscription of 2016 - 2017 is ₹ 2,500
With the help of the above information present the item Subscription in Income and Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that date.
(Preparation of Income and Expenditure Account only)
Following is the Receipts and Payments Account of “Satara Sports Club” Satara Prepare Income and Expenditure Account for the year ending 31.03.2019.
| Dr | Receipts and Payments Account for the year ending 31.03.2019. | Cr | |||||
| Receipts | Amt ₹ | Amt ₹ | Payments | Amt ₹ | Amt ₹ | ||
| To Balance b/d | By Salaries | 5,000 | |||||
| Cash in hand | 4,500 | 16,500 | By Rent (Including ₹ 2,000 for 2017 - 18) | 5,000 | |||
| Cash at Bank | 12,000 | By Electricity Charges | 1,450 | ||||
| To Subscription | By Fixed Deposit | 60,000 | |||||
| 2017 - 18 | 4,000 | 52,000 | By Printing and Stationery | 750 | |||
| 2018 - 19 | 44,500 | By General Expenses (Including ₹ 500 paid for next year) | 5,500 | ||||
| 2019 - 20 | 3,500 | By Sports Material Purchased | 40,000 | ||||
| To Entrance fees | 8,000 | By Balance c/d | |||||
| To Donation for Building fund | 70,000 | Cash in Hand | 8,900 | 33,900 | |||
| To Interest | 600 | Cash at Bank | 25,000 | ||||
|
To Sale of furniture |
4,500 | ||||||
| 1,51,600 | 1,51,600 | ||||||
Adjustments:
1) Outstanding Subscription for Current Year is ₹ 4,500
2) Outstanding Rent for Current Year amounted to ₹ 1,000
3) Entrance Fees are to be treated as Revenue Income
4) Stock of Sports Material as on 01.04.2018 ₹ 6,000 and on 31.03.2019 ₹ 14,000
“Bhartiya Kala Kendra”, Solapur gives you the following information, for the year ended on 31.03.2018 Prepare Income and Expenditure Account for the year ending 31.03.2018
| Dr. | Receipts and payments Account for the year ending 31.03.2018. | Cr. | |||
| Receipts | Amount ₹ | Payments | Amount ₹ | ||
| To Balance b/d | By Stationery | 600 | |||
| Cash in Hand | 200 | By Furniture Purchased | 7,000 | ||
| Cash at Bank | 12,500 | By Investments in govt securities | 14,000 | ||
| To Locker Rent | 400 | By Expenses of Drama | 3,000 | ||
| To Entrance fees | 2,900 | By Postage | 450 | ||
| To Sale of old newspapers | 250 | By Magazine and newspaper | 600 | ||
| To Receipts from Drama | 9,000 | By Salaries | 4,400 | ||
| To Legacies | 12,000 | By Balance c/d | |||
| To Interest of Govt. Securities | 400 | Cash in Hand | 700 | ||
| To Miscellaneous Receipts | 400 | Cash at Bank | 7,300 | ||
| 38,050 | 38,050 | ||||
Additional Information :
1) Legacies are to be capitalised.
2) Outstanding Salary ₹ 200.
3) 50 % of Entrance Fees are to be Capitalised.
From the following transactions of Receipts and Payments Account of “Pavan - Putra Hanuma Vyayamshala” Parbhani, and the adjustments given, you are required to prepare Income and Expenditure Account and Balance Sheet as on 31st March 2019.
| Dr | Receipts and Payments Account for the year ending 31.03.2019. | Cr | |||||
| Receipts | Amount ₹ |
Payments | Amount ₹ |
||||
| To Balance b/d | By Salaries | 6,000 | |||||
| Cash in Hand | 5,000 | By Entertainment Expenses | 2,480 | ||||
| To Subscriptions | By Sundry Expenses | 1,300 | |||||
| 2018 - 19 | 18,000 | By Electricity Charges | 1,200 | ||||
| 2019 - 20 | 410 | 18,410 | By Rent | 700 | |||
| To Donations | 6,000 | By Investment | 15,000 | ||||
| To Receipts from Entertainment | 5,400 | By Printing and Stationery | 800 | ||||
| To Interest | 400 | By Postage | 3,200 | ||||
| To Entrance fees | 6,200 | By Fixed Deposit | 3,900 | ||||
| By Balance c/d | |||||||
| Cash in Hand | 830 | ||||||
| Cash at Bank | 6000 | 6,830 | |||||
| 41,410 | 41,410 | ||||||
Adjustments:
1) There are 500 members paying an annual Subscription of ₹ 50 each
2) Outstanding Salary was ₹ 1,200
3) The Assets on 01.04.2018 were as follows: Building ₹ 50,000, Furniture ₹ 15,000
4) Provide depreciation on Building and Furniture at 5% and 10% respectively.
5) 50% Entrance Fee is to be capitalized.
6) Interest on Investment at 5% p. a. has accrued for 6 months.
7) Capital Fund ₹ 70,000 on 01.04.2018
(Outstanding Expenses and Prepaid Expenses)
From the following information supplied to you, prepare Income and Expenditure Account for the year ending on 31.03.2020 and Balance Sheet as on that date for “Morya Sports Club” Thane.
| Balance Sheet as on 01.04.2019. | |||
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Capital Fund | 64,500 | Machinery | 69,000 |
| Bank overdraft | 38,000 | Outstanding Subscriptions | 8,000 |
| Outstanding Salary | 4,000 | Prepaid Insurance Premium | 2,000 |
| Furniture | 15,000 | ||
| Cash in Hand | 12,000 | ||
| Outstanding Locker’s Rent | 500 | ||
| 1,06,500 | 1,06,500 | ||
| Dr. | Receipts and Payments Account for the year ended 31.03.2020 | Cr. | |||
| Receipts | Amount ₹ | Payments | Amount ₹ |
||
| To Balance b/d | 12,000 | By Balance b/d (Bank Overdraft) | 38,000 | ||
| To Subscription | 1,05,000 | By Salary | 17,500 | ||
| To Entrance Fees (Capitalised) | 9,300 | By Insurance Premium | 11,000 | ||
| To Locker Rent | 1,500 | By Interest | 1,400 | ||
| To Donations (Capitalised) | 800 | By Refreshment Expenses | 4,200 | ||
| By Furniture | 30,000 | ||||
| By Balance c/d | |||||
| Cash in Hand | 6,500 | ||||
| Cash at Bank | 20,000 | ||||
| 1,28,600 | 1,28,600 | ||||
Adjustments :
1) Subscription received includes ₹ 3,000 for 2018 - 19 and Outstanding Subscription for 2019 - 20 was ₹ 14,000.
2) On 31.03.2020, Prepaid Insurance Premium was ₹ 2,500.
3) Depreciate Furniture by ₹ 3,000.
4) Locker Rent Outstanding for 2019 - 20 is ₹ 400
There are 500 members in a club each paying ₹ 100 as annual subscription. Subscription due but not received for the current year is ₹ 200; Subscription received in advance is ₹ 300. Find out the amount of subscription to be shown in the income and expenditure account.
Write a short note on life membership fees.
State the differences between Receipts and Payments Account and Income and Expenditure Account.
How the following items are dealt with in the final accounts of the not-for-profit organisation?
- Sale of sports materials
- Life membership fees
- Tournament fund
From the following receipts and payments account and the additional information given below, calculate the amount of subscription to be shown in the Income and expenditure account for the year ending 31st December, 2018.
| Receipts | ₹ | ₹ | Payments | ₹ |
| To Subscription | ||||
| 2017 | 28,000 | |||
| 2018 | 1,72,000 | |||
| 2019 | 12,000 | 2,12,000 | ||
Additional information: Subscription outstanding for the year 2018 is ₹ 8,000.
How will the following items appear in the final accounts of a club for the year ending 31st March 2017? Received subscription of ₹ 40,000 during the year 2016-17. This includes a subscription of ₹ 5,000 for 2015-16 and ₹ 3,000 for the year 2017-18. Subscription of ₹ 1,000 is still outstanding for the year 2016-17.
From the following particulars, show how the item ‘subscription’ will appear in the Income and Expenditure Account for the year ended 31-12-2018?
Subscription received in 2018 is ₹ 50,000 which includes ₹ 5,000 for 2017 and ₹ 7,000 for 2019. Subscription outstanding for the year 2018 is ₹ 6,000. Subscription of ₹ 4,000 was received in advance for 2018 in the year 2017.
How the following items appear in the final accounts of Thoothukudi Young Pioneers Association?
There are one hundred members in the association each paying ₹ 25 as annual subscription. By the end of the year, 10 members had not paid their subscription but four members had paid for the next year in advance.
Mumbai University prepares ______ Account instead of a Profit and Loss account.
Excess of expenditure over income is termed as ______.
Write the word/phrase/term which can substitute each of the following statement:
Reduction in the value of fixed assets due to its continuous use.
Opening stock of medicines ₹ 25,000, Purchase of medicines ₹ 1,00,000, Outstanding medicines bill ₹ 36,000, Closing stock of medicines ₹ 16,000. Find out amount of medicines consumed.
Dr. Anish Korgaonkar started the practice of Medical Practioner on 1st April 2019. He gives you the Receipts and Payments Account for the year ended 31st March 2020 and the adjustments.
Prepare the Income and Expenditure Account for the year ended 31st March 2020 and the Balance Sheet as on that date:
| Dr. | Dr. Anish Korgaonkar's Receipts and Payments Account for the year ended 31st March 2020 | Cr. | |
| Receipts | Amount (₹) | Payments | Amount (₹) |
| To Cash introduced | 50,000 | By Furniture | 16,000 |
| To visit fees | 20,000 | By Equipment | 20,000 |
| To Receipts from dispensary | 60,000 | By Drugs | 14,000 |
| To Sundry receipts | 10,000 | By Salaries | 24,000 |
| By Rent | 12,000 | ||
| By Conveyance | 8,000 | ||
| By Stationery | 1,000 | ||
| By Electrical charges | 10,000 | ||
| By Journals | 1,000 | ||
| By Drawings | 30,000 | ||
| By Balance c/d | 4,000 | ||
| 1,40,000 | 1,40,000 | ||
Additional information:
- Receipts in arrears are visit fees ₹ 4,000 and dispensary ₹ 1,000
- Outstanding expenses - Rent ₹ 1,000 and Salaries ₹ 2,000
- Stock of drugs ₹ 2.000
- Depreciate furniture @ 8% p.a. and equipment ₹ 1.000.
- 40% of the conveyance expenses are for domestic use.
