Following is the Receipts and Payments Account of Chamber of Commerce, Amaravati for the year ending 31st March 2012 and some additional information. Receipts and Payments Account For the year ended March 31, 2012 Receipts Amount Payment Amount To balance b/d (Cash at bank) 11,960 By Printing and Stationery 6,950 To Subscription (Including Rs. 2,500 for 2010–11) 36,500 By Repairs 2,100 To Sale of furniture (Books value Rs. 18,000) 12,000 By Rent 8,500 To Donation for building fund 27,000 By Books 20,000 To Admission fees (Revenue) 5,050 By Travelling expenses 2,000 By Investments 40,000 By Insurance 1,700 By Balance c/d (Cash at bank) 11,260 92,510 92,510 Additional information: Particulars 1.04.2011 31.03.2012 OutstandingSubscription 3,000 5,000 Furniture 32,000 12,600 Building Fund 1,45,000 Capital Fund 1,51,960 Investment 2,50,000 Prepare Income and Expenditure A/c for the year ended 31st March, 2012 and Balance Sheet as on that date.

In the books of Chamber of Commerce, Amravati Income and Expenditure Account for the year ending March 31, 2012 Dr. Cr. Expenditure Amount (Rs) Income Amount (Rs) Printing & Stationery 6950 Subscription 36,500 Repairs 2,100 Less: Outstanding (2010–11) 2,500 Rent 8,500 Add: Outstanding (2011–12) 4,500 38,500 Travelling Expenses 2,000 Admission Fees 5,050 Loss on Sale of Furniture 6,000 Depreciation on Furniture (WN) 1,400 Insurance 1,700 Surplus (Excess of Income over Expenditure) 14,900 43,550 43,550 Balance Sheet as on March 31, 2012 Liabilities Amount (Rs) Assets Amount (Rs) Capital Fund 1,51,960 Books 20000 Add: Surplus 14,900 1,66,860 Investment 2,50,000 Building 1,45,000 Add: Additional 40,000 2,90,000 Fund Add: Donation 27,000 1,72,000 Furniture 12,600 Outstanding Subscription 2010–11 500 2011–12 4500 5,000 Bank 11,260 3,38,860 3,38,860 Working Note: Furniture Account Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2011 April 01 Balance b/d 32,000 2011-12 Bank A/c (Sale) 12000 Profit and Loss A/c (Loss on sale) 6000 Mar. 31 Depreciation A/c (Balancing Figure) 1,400 Mar. 31 Balance c/d 12,600 32,000 32,000

Following is the Receipts and Payments Account of Chamber of Commerce, Amaravati for the Year Ending 31st March 2012 and Some Additional Information. - Book Keeping and Accountancy

Question

Following is the Receipts and Payments Account of Chamber of Commerce, Amaravati for the year ending 31st March 2012 and some additional information.

Receipts and Payments Account For the year ended March 31, 2012
Receipts	Amount	Payment	Amount
To balance b/d (Cash at bank)	11,960	By Printing and Stationery	6,950
To Subscription (Including Rs. 2,500 for 2010–11)	36,500	By Repairs	2,100
To Sale of furniture (Books value Rs. 18,000)	12,000	By Rent	8,500
To Donation for building fund	27,000	By Books	20,000
To Admission fees (Revenue)	5,050	By Travelling expenses	2,000
		By Investments	40,000
		By Insurance	1,700
		By Balance c/d (Cash at bank)	11,260

	92,510		92,510

Additional information:

Particulars	1.04.2011	31.03.2012
Outstanding Subscription	3,000	5,000
Outstanding Subscription	3,000	5,000	Furniture	32,000	12,600
Building Fund	1,45,000
Capital Fund	1,51,960
Investment	2,50,000

Prepare Income and Expenditure A/c for the year ended 31st March, 2012 and Balance Sheet as on that date.

Journal Entry

Solution

In the books of Chamber of Commerce, Amravati Income and Expenditure Account for the year ending March 31, 2012
Dr.			Cr.
Expenditure	Amount (Rs)	Income	Amount (Rs)
Printing & Stationery	6950	Subscription 36,500
Repairs	2,100	Less: Outstanding (2010–11) 2,500
Rent	8,500	Add: Outstanding (2011–12) 4,500	38,500
Travelling Expenses	2,000	Admission Fees	5,050
Loss on Sale of Furniture	6,000
Depreciation on Furniture (WN)	1,400
Insurance	1,700
Surplus (Excess of Income over Expenditure)	14,900

	43,550		43,550

Balance Sheet as on March 31, 2012
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Capital Fund 1,51,960		Books	20000
Add: Surplus 14,900	1,66,860	Investment 2,50,000
Building 1,45,000		Add: Additional 40,000	2,90,000
Fund
Add:
Donation 27,000	1,72,000	Furniture	12,600
		Outstanding Subscription
		2010–11 500
		2011–12 4500	5,000
		Bank	11,260

	3,38,860		3,38,860

Working Note:

Furniture Account
Dr.							Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2011 April 01	Balance b/d		32,000	2011-12	Bank A/c (Sale)		12000
					Profit and Loss A/c (Loss on sale)		6000
				Mar. 31	Depreciation A/c (Balancing Figure)		1,400
				Mar. 31	Balance c/d		12,600

			32,000				32,000

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Preparation of Income and Expenditure Account and Closing Balance Sheet

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Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capital fund	1000000	Cash in hand	6000
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Receipts and Payments Account for the year ending 31.03.2013

Dr.			Cr.
Receipts	Amount (Rs.)	Payments	Amount (Rs.)
To Balance b/d Cash in hand Cash at bank	6000 30000	By Salaries (including of previous year)	110000
To Subscription (includes 2000 received for previous year)	130000	By Medicines	48000
To Sale of old furniture (book value Rs. 30000)	20000	By Equipment purchased	20000
To Donations (revenue)	44000	By Taxes	3000
To Life membership fees	25000	By General expenses	8600
		By Balance c/d Cash in hand Cash at bank	15400 50000
	255000		255000

Consider the following adjustments :

Outstanding subscription Rs. 15,000.
Capitalise the amount of life membership fees.
Pre-paid taxes Rs. 500.
Outstanding salary Rs. 12,000.
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Outstanding medicine bill as on 01.04.2012 is still due.

Mrs. Meena of Bilaspur has not kept proper books of accounts, following information is provided to you.

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Debtors	18000	25000
Creditors	18000	20000
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Further information:
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Receipts and Payment Account for the year ending 31.03.2013

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
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	330000		330000

Additional Information:

(1) Capital fund on 01.04.2012, was Rs. 1,08,000.

(2) Legacies are to be capitalized.

(3) Outstanding salary Rs. 3,000.

(4) 50% of entrance fees is to be capitalized.

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Receipts and Payments Account for the year ended 31st March 2008
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To Balance b/d		By Furniture Purchased	5,400
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To Donation of Library	30,000	By Closing Balance
To Interest on Investment	2,000	Cash at bank	34,300
	1,58,200		1,58,200

Adjustments:
1. Tuition fees still receivable are Rs. 10,000.
2. Salaries still payable are Rs. 30,000
3. An insurance premium is paid for one year ending 30.9.2008.
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To Balance b/d			By Salaries		35,300
Cash in hand		2,400	By Furniture (Purchased on01.10.2012)		10,000
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To Sale of Old Furniture [Book value Rs. 15000]	10000	By Balance c/d
To Donations (Revenue)	22000	Cash in Hand	7700
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