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प्रश्न
Answer in one sentence only.
Why Income and Expenditure Account is prepared?
उत्तर
Income and Expenditure Account is prepared to ascertain whether the concern has sufficient income to meet its expenses.
संबंधित प्रश्न
Subscription received in advance during the accounting year is _______.
Outstanding subscription at the end of the Accounting Year represents _______.
Expenditure on Purchase of Building is a ________ Expenditure.
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.
Write the word/phrase/term, which can substitute the following sentence.
The income which is earned during the year but not received during the year.
State whether the following statement is True or False with reasons.
Income and Expenditure Account represents either surplus or deficit.
Answer in one sentence only.
What is ‘Legacy’?
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 |
Find odd one:
Find odd one :
(Calculation of stationery consumed during the year)
| Balance Sheet as on 01.04.2018 | |||||
| Liabilities | Amt. ₹ | Amt. ₹ | Assets | Amt. ₹ | Amt. ₹ |
| Stock of Stationery | 400 | ||||
| Dr | Receipts and Payments Account for the year ending 31.03.2019 | Cr | |||
| Receipts | Amt. ₹ | Amt. ₹ | Payments | Amt. ₹ | Amt. ₹ |
| By Stationery Purchased | 6,300 | ||||
Adjustments :
1. ₹ 1,000 Outstanding for Stationery bill.
2. Stock of Stationery as on 31.03.2019 was valued at ₹1,800
With the above information, calculate the amount of Stationery consumed during the year and show its presentation in final Accounts of a concern.
(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
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
(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.
(Account of a Library)
Following is the Receipts Payments Account of “Dhananjay Library, Mumbai” for the year ending 31.03.2020
| Dr | Receipts and Payments Account for the year ending 31.03.2020. | Cr | |||
| Receipts | Amount ₹ |
Payments | Amount ₹ |
||
| To Balance b/d | 5,000 | By Salaries | 9,000 | ||
| To Admission Fees | 4,500 | By Rent | 7,500 | ||
| To Subscriptions | 20,000 | By Investments | 6,000 | ||
| To Lecture Hall Hire Charges | 4,200 | By Stationery | 1,350 | ||
| To Miscellaneous Income | 250 | By Electricity Charges | 850 | ||
| To Interest on Investment | 900 | By Books | 5,000 | ||
| By Outstanding Expenses (2018 - 19) | 500 | ||||
| By Balance c/d | 4,650 | ||||
| 34850 | 34850 | ||||
You are required to prepare an Income and Expenditure Account for the year ended 31.03.2020 and Balance Sheet as on that day.
The following information is also made available to you.
1) On 31.03.2019, the Library had the following Assets also; Books at ₹ 50,000, Furniture ₹ 6,500, and Machinery of ₹ 30,000
2) Subscription received in advance amounted to ₹ 500
3) Outstanding Salaries ₹ 1300 and for Rent ₹ 950
4) 50% of the Admission Fees should be capitalized.
5) Furniture to be depreciated at 10% p.a.
6) Library Books were purchased on 1st April 2019 charge Depreciation at 10% p. a.
7) The Investments were purchased on 01.04.2019 and they carry interest at 20*% p.a
What is legacy?
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
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.
What is outstanding expenses?
Symbiosys school, Pune showed the following position on 31st March, 2018.
| Balance Sheet as on 31st March 2018 | |||
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
| Capital Fund | 6,80,000 | Cash in Hand | 5,000 |
| Entrance fees | 20,000 | Cash at Bank | 8,000 |
| Laboratory | 15,000 | ||
| Building | 6,00,000 | ||
| Furniture | 40,000 | ||
| Books | 22,000 | ||
| Tuition fees Receivable |
10,000 | ||
| 7,00,000 | 7,00,000 | ||
| Dr. | Receipts and Payments Account for the year ending 31st March 2019 | Cr. | |||||
| Receipts | Amount ₹ | Amount ₹ | Payments |
Amount ₹ |
Amount ₹ |
||
| To Balance b/d | By Salaries to Teachers | 1,80,000 | |||||
| Cash | 5,000 | 13,000 | By Salaries to Office staff | 30,000 | |||
| Bank | 8,000 | By Books (Purchased on 1-1-2019) | 15,000 | ||||
| To Tuition Fees | By Printing & Stationery | 5,000 | |||||
| 2017 - 18 | 8,000 | 1,08,000 | By Annual Gathering Exp | 10,000 | |||
| 2018 - 19 | 1,00,000 | By Office Rent | 16,000 | ||||
| To Fine Collected | 2,000 | By Repairs | 15,000 | ||||
| To Admission fees | 10,000 | By Sports Exp. | 5,000 | ||||
| To Term fees | 7,000 | By Furniture (Purchased on 1-7-2018) | 50,000 | ||||
| To Donations to for Library | 1,000 | By Balance c/d | |||||
| To Interest on Bank Deposits | 5,000 | Cash | 8,000 | 20,000 | |||
| To Govt. Grants (Revenue) | 2,00,000 | Bank | 12,000 | ||||
| 3,46,000 | 3,46,000 | ||||||
Additional Information:
- Tuition fees are outstanding for current year ₹ 5,000.
- Salary to teachers is outstanding ₹ 15,000
- Rent paid in advance is ₹ 3,000
- Depreciation on Books @ 15 % p.a. and 10 % on Furniture.
You are required to prepare Income & Expenditure Account for the year ended 31st March, 2019 and a balance sheet as on that date.
Complete the following table:
| Sr. No |
Income (₹) |
Expenditure (₹) |
Surplus/Deficit (₹) |
| 1. | 10,000 | ? | 5,000 (Deficit) |
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.
Write the word/phrase/term which can substitute of the following statement:
The debit balance of Income and Expenditure Account.
Mumbai University prepare ______ Account instead of a Profit and Loss account.
Mumbai University prepares ______ Account instead of a Profit and Loss account.
