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प्रश्न
State whether the following statement is True or False with reasons.
Income and Expenditure Account represents either surplus or deficit.
विकल्प
True
False
उत्तर
This statement is True.
Explanation:
All revenue incomes and expenses are recorded in the Income and Expenditure Account. At the end of the specified period, the difference is known as ‘Surplus’ (revenue incomes are more than revenue expenses) or ‘Deficit’ (revenue expenses are more than revenue incomes).
APPEARS IN
संबंधित प्रश्न
Subscription received in advance during the accounting year is _______.
Income and Expenditure Account is a ________ Account.
Write the word/phrase/term, which can substitute the following sentence.
An account which is prepared by Not for Profit concern instead of Profit and Loss Account.
Subscription received from the members is considered as ________ receipts.
Answer in one sentence only.
What is ‘Legacy’?
Answer in one sentence only.
To which account ‘Surplus’ or ‘Deficit’ is transferred?
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 |
Find odd one:
(Newly Started Art Circle)
“Jeevan Jyoti Art Circle” a newly established concern has presented the following information.
| Dr | Receipts and Payments Account for the year ending 31.03.2018. | Cr | |||||
| Receipts | Amount ₹ |
Amount ₹ |
Payments | Amount ₹ |
Amount ₹ |
||
| To Admission fees | 22,000 | By Furniture | 12,000 | ||||
| To Subscriptions | 40,000 | By Stationery | 4,000 | ||||
| To Donations | 18,000 | By Office Rent | 2,600 | ||||
| By Newspapers & Periodicals | 300 | ||||||
| By Telephone Expenses | 560 | ||||||
| By Investments | 23,000 | ||||||
| By Balance c/d | |||||||
| Cash in Hand | 7,540 | ||||||
| Cash at Bank | 30,000 | 37,540 | |||||
| 80,000 | 80,000 | ||||||
Adjustments:
1) Subscription Outstanding for the year was ₹ 5,000
2) Depreciate Furniture @10 % p.a
3) Full amount of Admission Fees and 50*% Donations are to be capitalized.
You are required to prepare Income and Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that date.
Given below is the Receipts and Payments Account of “Vithai Mahila Mandal” Pandharpur for the year ending 31.03.2018. Prepare an Income and Expenditure Account for the year ended 31.03.2018 and Balance Sheet as on that date.
| Dr | Receipts and Payments Account for the year ending 31.03.2018. | Cr | |||||
| Receipts | Amount ₹ |
Amount ₹ |
Payments | Amount ₹ |
Amount ₹ |
||
| To Balance b/d | By Stationery | 6000 | |||||
| Cash in Hand | 3,000 | By Repairs to Furniture | 950 | ||||
| Cash at Bank | 20,000 | 23,000 | By Rent | 8,300 | |||
| To Entrance Fees | 3,500 | By Salaries | 15,000 | ||||
| To Subscription | 19,000 | By Miscellaneous Expenses | 450 | ||||
| To Miscellaneous Receipts | 850 | By Balance c/d | |||||
| Cash in Hand | 1,650 | ||||||
| Cash at Bank | 14,000 | 15,650 | |||||
| 46,350 | 46,350 | ||||||
Adjustments :
1) Capital Fund on 01.04.2017 was ₹ 90,000
2) Outstanding Subscription ₹ 4,000
3) Entrance Fees are to be capitalized
4) Rent paid includes ₹ 800 paid for April 2018
5) They have the following Assets and Liabilities 01.04.2017
Furniture ₹ 9,000,
Building ₹ 70,000,
Outstanding Expenses ₹ 12,000
(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
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 will appear in the final accounts of a club for the year ending 31st March 2019?
| Dr. | Receipts and Payments Account for the year ended 31st March, 2019 | Cr. | ||
| Receipts | ₹ | ₹ | Payments | ₹ |
| To Subscription | ||||
| 2017 - 2018 | 10,000 | |||
| 2018 - 2019 | 50,000 | |||
| 2019 - 2020 | 5,000 | 65,000 | ||
There are 200 members in the club each paying an annual subscription of ₹ 400 per annum. Subscription still outstanding for the year 2017 - 2018 is ₹ 2,000.
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.
Compute income from the subscription for the year 2018 from the following particulars relating to a club.
| Particulars | 1.1.2018 ₹ |
31.12.2018 ₹ |
| Outstanding subscription | 3,000 | 5,000 |
| Subscription received in advance | 4,000 | 7,000 |
Subscription received during the year 2018: ₹ 45,000.
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.
How will the following appear in the final accounts of Vedaranyam Sports club?
| Particulars | ₹ |
| Opening stock of bats and balls | 3,000 |
| Purchase of bats and balls during the year | 17,000 |
| Sale of old bats and balls | 2,000 |
| Closing stock of bats and balls | 4,000 |
Show how the following items appear in the income and expenditure account of Sirkazhi Singers Association?
| Particulars | ₹ |
| Stock of stationery on 1.4.2018 | 2,600 |
| Purchase of stationery during the year | 6,500 |
| Stock of stationery on 31.3.2019 | 2,200 |
Complete the following table:
Salaries paid during the year
| Total (₹) |
Prepaid/ Outstanding |
(₹) | Expenditure for the year |
| ? | Outstanding | 600 | 5,100 |
Complete the following table:
Rent received during the year
| Total Received (₹) |
Rent received in Advance/Accrued |
(₹) | Income for the Year |
| 1,700 | Accrued | ? | 2,150 |
The following is the Receipts and Payments Account of Young Pensioner's Association. Leh for the year ended 31st March, 2020.
| Dr. | Receipts and Payments Account for the year ending 31st March 2020 |
Cr. | ||||
| Receipts | Amount ₹ |
Amount ₹ |
Payments | Amount ₹ |
||
| To Balance b/d | 7,000 | By Stationery | 8,000 | |||
| To Subscriptions | By Postage | 1,000 | ||||
| 2018 - 19 | 5,000 | 90,000 | By Picnic Exp | 8,000 | ||
| 2019 - 20 | 83,000 | By Salaries | 8,000 | |||
| 2020 - 21 | 2,000 | By Annual General meeting Expenses |
4,500 | |||
| To Entrance fees (Capital Receipt) |
13,000 |
By Traveling Exp |
7,500 | |||
| To Donations | 60,000 | By Rent | 12,000 | |||
| To Legacies | 40,000 | By Charity | 7,800 | |||
| To Interest on Deposit | 7,000 | By Sundry Exp. | 3,200 | |||
| To Picnic Receipts | 10,000 | By Fixed Deposit | 1,10,000 | |||
| By Furniture | 50,000 | |||||
| By Balance c/d | 7,000 | |||||
| 2,27,000 | 2,27,000 | |||||
Adjustments:
- Outstanding subscription for current year ₹ 7,000.
- Furniture was purchased on 1st Oct, 2019 and it is to be depreciated by 10 % p.a
- Outstanding picnic receipts ₹ 7,500.
- Stock of stationery on 1-4-2019 was ₹ 350 and on 31st March, 2020 was ₹ 1,700.
- 50 % of legacies and full amount of donations are to be capitalised.
With the above information, you are required to prepare Income and Expenditure Account for the year ended 31st March 2020.
From the following particulars relating to "Radha-Krishna Charitable Hospital". Prepare Income and Expenditure Account for the year ending 31 - 03 - 2023 and Balance Sheet as on that date.
| Dr. | Receipts and Payments Account for the year ending on 31- 03 - 2023 | Cr. | ||
| Receipts | Amount (₹) | Payments | Amount (₹) | |
| To Balance b/d | By Medicines Purchased | 82,000 | ||
| Cash | 16,460 | By General Expenses | 2,100 | |
| To Subscriptions | 1,04,000 | By Salaries | 47,000 | |
| To Donations (General) | 35,000 | By Stationery | 4,000 | |
| To Interest on Investments | 20,000 | By Expenses on Charity Show | 1,100 | |
| To Proceeds from Charity Show | By Surgery and Dispensary Exp. | 8,400 | ||
| By Equipments | 20,000 | |||
| By Balance c/d | ||||
| Cash in Hand | 1920 | 27,920 | ||
| Cash at Bank | 26,000 | |||
| 1,92,520 | 1,92,520 | |||
Additional Information:
| Particulars | 01-04-2022 (₹) | 31 - 03-2023 (₹) |
| 1. Subscription Due | 620 | 750 |
| 2. Subscription Received in Advance | 1,200 | 300 |
| 3. Stock of Medicines | 16,000 | 22,000 |
| 4. Estimated Value of Equipments | 30,000 | ? |
| 5. Buildings | 80,000 | ? |
| 6. Capital Fund | 3,41,880 | ? |
| 7. 10 % Investment | 2,00,000 | ? |
Provide Depreciation on Equipments ₹ 3,800 and on Building ₹ 3,000.
From the following Receipts and Payments Account of "L.D. Engineering College'', for the year ending on 31 - 03 - 2023 and additional information, prepare Income and Expenditure Account for the year ending 31 - 03 - 2023 and Balance Sheet as on that date.
| Dr. | Receipts and Payments Account for the year ending 31- 03 - 2023 | Cr. | |
| Receipts | Amount (₹) | Payments | Amount (₹) |
| To Balance b/d | By Salaries to Teaching Staff | 9,36,000 | |
| Cash in Hand | 14,400 | By Electricity Charges | 44,000 |
| Cash at Bank | 80,320 | By Books | 48,800 |
| To Interest | 44,000 | By Furniture | 40,800 |
| To Subscriptions | 22,640 | By Stationery | 17,480 |
| To Life Membership Fees | 20,000 | By Fixed Deposit (31 - 03 - 2023) |
6,80,000 |
| To Donation | 5,60,000 | By Balance c/d | |
| To Tuition Fees | 9,84,000 | Cash in Hand | 13,320 |
| To Term Fees | 1,60,640 | Cash at Bank | 1,60,000 |
| To Sundry Receipts | 6,400 | ||
| To Admission Fees (Revenue) | 48,000 | ||
| 19,40,400 | 19,40,400 | ||
Additional Information:
| Particulars | 01-04-2022 (₹) | 31-03-2023 (₹) |
| Books | 4,80,000 | 4,80,000 |
| Furniture | 2,55,200 | 2,40,000 |
| Building Fund | 8,00,000 | ? |
| Fixed Deposit | 7,28,000 | ? |
| Capital Fund | 7,57,920 | ? |
(1) 50% of donation are for Building fund and the balance is to be treated as Revenue income.
(2) Outstanding subscription ₹ 4,240.
(3) Life membership fees are to be capitalised.
Find Surplus/Deficit:
| Sr. No. | Expenditure | Income | Surplus/Deficit |
| (i) | ? | 5,500 | 1,000 (Surplus) |
| (ii) | ? | 17,000 | 2,500 (Deficit) |
From the following information, prepare Income and Expenditure Account for the year ending 31 - 03 - 2022 and Balance Sheet as on that date for "Karnavati Club".
| Balance Sheet as on 01 - 04 - 2022 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capital Fund | 1,29,000 | Machinery | 1,38,000 |
| Bank Overdraft | 76,000 | Outstanding Subscriptions | 16,000 |
| Outstanding Salary | 8,000 | Prepaid Insurance Premium | 4,000 |
| Furniture | 30,000 | ||
| Cash in Hand | 24,000 | ||
| Outstanding Locker's Rent | 1,000 | ||
| 2,13,000 | 2,13,000 | ||
| Dr. | Receipts and Payments Account for the year ended on 31 - 03 - 2023 | Cr. | |
| Receipts | Amount (₹) | Payments | Amount (₹) |
| To Balance b/d | 24,000 | By Balance b/d (Bank Overdraft) | 76,000 |
| To Subscription | 2,10,000 | By Salary | 35,000 |
| To Entrance Fees (Capitalised) | 18,600 | By Insurance Premium | 22,000 |
| To Locker Rent | 3,000 | By Interest | 2,800 |
| To Donations (Capitalised) | 1,600 | By Refreshment Expenses | 8,400 |
| By Furniture | 60,000 | ||
| By Balance c/d | |||
| Cash in Hand | 13,00 | ||
| Cash at Bank | 40,000 | ||
| 2,57,200 | 2,57,200 | ||
Adjustments:
(1) Subscription received includes ₹ 6,000 for 2021-22 and outstanding subscription for 2022 - 23 was ₹ 28,000.
(2) On 31 - 03 - 2023, Prepaid insurance premium was ₹ 5,000.
(3) Depreciate Furniture by ₹ 6,000.
(4) Locker rent outstanding for 2022 - 23 is ₹ 800.
Mumbai University prepares ______ Account instead of a Profit and Loss account.
