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Question
Answer in one sentence only.
What is Surplus?
Solution
Excess of income over expenditure shown by the Income and Expenditure Account represents a surplus for the financial year.
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An Account which records only revenue items in case of Not for profit concern.
Income and Expenditure Account is similar to the _____ account of Trading Concern.
Answer in one sentence only.
Why Income and Expenditure Account is prepared?
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.
(Accounts of a Charitable Hospital)
From the following particulars relating to “Radha-Krishna Charitable Hospital” Pune. Prepare Income and Expenditure Account for the year ending 31.03.2020 and Balance Sheet as on that date.
| Dr. | Receipts and payments Account for the year ending 31 Mar 2020. | Cr. | ||||
| Receipts | Amount ₹ | Payments | Amount ₹ | |||
| To Balance b/d | By Medicines Purchased | 41,000 | ||||
| Cash | 8,230 | By General Expenses | 1,050 | |||
| To Subscriptions | 52,000 | By Salaries | 23,500 | |||
| To Donations (General) | 17,500 | By Stationery | 2,000 | |||
| To Interest in Investments | 10,000 | By Expenses on Charity Show | 550 | |||
| To Proceeds from Charity Show | 8,530 | By Surgery and Dispensary Exp | 4,200 | |||
| By Equipments | 10,000 | |||||
| By Balance c/d | ||||||
| Cash in Hand | 960 | |||||
| Cash at Bank | 13,000 | 13,960 | ||||
| 96,260 | 96,260 | |||||
Additional Information :
| Particulars | 01.04.2019 ₹ | 31.03.2020 ₹ |
| 1. Subscription Due | 310 | 350 |
| 2. Subscription Received in Advance | 600 | 150 |
| 3. Stock of Medicine | 8,000 | 11,000 |
| 4. Estimated Value of Equipment | 15,000 | ? |
| 5. Building | 40,000 | ? |
| 6. Capital Fund | 1,70,940 | ? |
| 7. 10 % Investment | 1,00,000 | ? |
Provide Depreciation on Equipments ₹ 1,900 and on Building ₹ 1,500
Income and Expenditure Account is prepared to find out __________.
Which of the following should not be recorded in the income and expenditure account?
Subscription due but not received for the current year is ____________.
Donations received for a specific purpose is ____________.
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.
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 |
Aurangabad University prepares _______ Account instead of Profit and Loss Account.
From the following Receipts and Payments account of Shahu College, Kolhapur for the year ending 31st March, 2020 and additional information, prepare Income and Expenditure Account for the year ended 31st March, 2020 and Balance Sheet as on that date:
| Dr. | Receipts and Payments Account for the year ended 31st March, 2020 |
Cr. | |
| Receipts | Amount (₹) | Payments | Amount (₹) |
| To Balance b/d | By Salaries | 11,77,500 | |
| Cash | 6,000 | By Printing and Stationery |
13,500 |
| Bank | 1,00,000 | By Books | 44,000 |
| To Interest | 30,000 | By Furniture | 39,000 |
| To Donation | 3,50,000 | By Drama Expenses | 45,000 |
| To Tuition Fees | 9,50,000 | By Postage | 3,500 |
| To Admission Fees | 32,500 | By Telephone Charges | 3,000 |
| To Drama Receipts | 50,000 | By Electricity | 30,500 |
| To Rent from use of Hall | 3,000 | By Magazine and Newspapers |
3,000 |
| To Legacies (Capital) | 30,000 | By Balance c/d | |
| Cash | 31,000 | ||
| Bank | 1,61,500 | ||
| 15,51,500 | 15,51,500 | ||
Additional information:
(1) Outstanding Salaries ₹ 35,000.
(2) 60% of donations are for Building Fund and Balance is to be treated as revenue income.
(3)
| Particulars | 1 - 4 - 2019 (₹) | 31 - 3 - 2020 (₹) |
| Capital Fund | 3,05,500 | ? |
| Building Fund | 4,13,500 | ? |
| Furniture | 1,63,000 | 1,50,000 |
| Books | 4,50,000 | 4,44,000 |
10% Depreciation on Furniture ₹ 12,000/- 3 Months
Following is the Receipts and Payments Account of Parnil Sports Club, Pune and additional information given below you are required to prepare Income and Expenditure Account for the year ended 31st March 2019 and a Balance Sheet as on that date.
| Dr. | Receipts and Payments Account for the year ended 31st March, 2019 |
Cr. | ||
| Receipts | Amount (₹) | Payments | Amount (₹) | |
| To Balance b/d | 5,000 | By Bank Overdraft (Repaid) | 32,000 | |
| To Subscriptions: | By Salaries | 10,000 | ||
| 2016-17 | 2,000 | 75,000 | By Electrical Charges | 4,000 |
| 2017-18 | 3,000 | By Municipal Taxes | 2,700 | |
| 2018-19 | 70,000 | By Purchase of Sports Materials | 50,000 | |
| To Donations | 15,000 | By General Expenses | 500 | |
| To Entrance fees | 1,700 | By Billiard Expenses | 3,000 | |
| To Life membership fees (Revenue) | 17,000 | By Repairs to Ground | 500 | |
| To Tournaments Receipts | 60,000 | By Tournaments Exp. | 50,000 | |
| By Balance c/d: | ||||
| Cash in Hand | 7,000 | |||
| Cash at Bank | 14,000 | |||
| 1,73,700 | 1,73,700 | |||
Additional Information :
- 50% Donations are towards Building Fund.
- 70% entrance fees should be capitalised.
- Subscriptions ₹ 500 for the year 2016-17 ₹ 1,000 for 2017-18 are still in arrears.
- Following are the balances appeared in the books as on 1-4-2018 :
Building Fund ₹ 47,000, Bank Overdraft ₹ 32,000, Land ₹ 1,50,000, Sports Materials ₹ 30,000. Outstanding Subscription for 2016-17 is ₹ 2,500 and 2017-18 is ₹ 4,000. - Outstanding Subscription for current year is ₹ 8,000.
- Closing Stock of Sports Material was ₹ 8,000 on which depreciation to be provided at 12.50% p.a.
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.
Mumbai University prepares ______ Account instead of a Profit and Loss account.
Following is the Receipts and Payments Account of "Satara Sports Club". Prepare Income and Expenditure Account for the year ending 31 - 03 - 2022. Also prepare Balance sheet as on 31 -03-2022.
| Dr. | Receipts and Payments Account for the year ending 31 - 03 - 2022 | Cr. | |||
| Receipts | Amount (₹) | Amount (₹) | Payments | Amount (₹) | Amount (₹) |
| To Balance b/d | By Salaries | 10,000 | |||
| Cash in Hand | 9,000 | 33,000 | By Rent (Including ₹ 4,000 for 2020-21) | 10,00 | |
| Cash at Bank | 24,000 | By Electricity Charges | 2,900 | ||
| To Subscription | By Fixed Deposit | 1,20,000 | |||
| 2020 - 21 | 8,000 | 1,04,000 | By Printing and Stationery | 1,500 | |
| 2021 - 22 | 89,000 | By General Expenses (Including ₹ 1000 paid for next year) | 11,000 | ||
| 2022 - 23 | 7,000 | By Sports Material | |||
| To Entrance Fees | 16,000 | Purchased | 80,000 | ||
| To Donation for | By Balance c/d | ||||
| Building Fund | 1,40,000 | Cash in Hand | 17,800 | 67,800 | |
| To Interest | 1,200 | Cash at Bank | 50,000 | ||
| To Sale of Furniture (Book Value ₹ 16,000) | 9,000 | ||||
| 3,03,200 | 3,03,200 | ||||
Adjustments:
(1) Outstanding subscription for current year is ₹ 9,000.
(2) Outstanding rent for current year amounted to ₹ 2,000.
(3) Entrance Fees are to be treated as Revenue Income.
(4) Stock of sports material as on 01 - 04 - 2021 ₹ 12,000 and on 31 - 03 - 2022 ₹ 28,000.
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.
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.
Find the odd one:
Find the odd one:
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.
