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Question
Following is the Receipt and Payment account of Rohatgi Trust :
Receipt and Payment Account
for the year ending December 31, 2017
| Receipts | Amount (Rs) | Payments | Amount (Rs) | |
| Cash in hand | 14000 | Rent | 6,000 | |
| Cash at Bank | 60000 | Salary | 12,000 | |
| Subscriptions: | Postage | 300 | ||
| 2016 | 5000 | 91000 | Electricity charges | 6,000 |
| 2017 | 83000 | Purchase of furniture | 20000 | |
| 2018 | 3000 | Books | 3,000 | |
| Sale of Investment | 90,000 | Defence Bonds | 1,50,000 | |
| Interest on Investment | 2000 | Help to needy students | 22,000 | |
| Sale of furniture (book value Rs 3,000) | 3200 | Cash in hand | 10,900 | |
| Cash at bank | 30,000 | |||
| 260200 | 260200 | |||
Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments: Subscription for 2017, still owing were Rs 7,000. Interest due on defence bonds was Rs7,000, Rent still owing was Rs 1,000. The Book value of investment sold was Rs 80,000, Rs 30,000 of the investment were still in hand. Subscription received in 2017 included Rs 400 from a life member. The total furniture on January 1, 2017 was worth Rs 12,000. Salary paid for the year 2018 is Rs 2,000.
Solution
Books of Rohatgi Trust
Income and Expenditure Account
as on December 31, 2017
| Expenditure | Amount (Rs) | Income | Amount (Rs) | ||
| Rent | 6,000 | 7000 | Subscription | 83000 | 89,600 |
| Add: Outstanding | 1000 | Add: Outstanding for 2017 | 7000 | ||
| Salary | 12000 | 10,000 | 90000 | ||
| Less: Advance for 2018 | (2000) |
Less: Life Membership Fees |
(400) | ||
| Postage | 300 | Interest Accrued on Defence Bonds | 7000 | ||
| Electricity Charges | 6000 |
Profit on Sale of Investment |
10000 | ||
| Help to Needy Students | 22000 |
Profit on Sale of Furniture |
200 | ||
| Surplus (Balancing Figure) | 63,500 | Interest on Investments | 2000 | ||
| 108800 | 108800 | ||||
Balance Sheet
as on December 31, 2016
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Capital fund (Balancing Figure) | 201000 | Subscription Outstanding | 5000 |
| Investment (Rs 80,000 + Rs 30,000) | 110000 | ||
| Furniture | 12,000 | ||
| Cash in hand | 14,000 | ||
| Cash at bank | 60,000 | ||
| 201000 | 201000 |
Balance Sheet
as on December 31, 2017
| Expenditure | Amount (Rs) | Assets | amount (Rs) | ||
| Advance Subscription | 3000 | Subscription Outstanding | 7000 | ||
| Rent Outstanding | 1000 |
Defence Bonds |
150000 | 1,57,000 | |
| Capital Fund |
2,01,000 |
264900 | Add: Accrued Interest on Defence Bonds | 7000 | |
| Add: Surplus | 63,500 | Investment | 30,000 | ||
| Add: Life Membership Fees | 400 | Advance Salaries | 2000 | ||
| Furniture | 12000 | 29000 | |||
| Add: Purchases | 20,000 | ||||
| 32000 | |||||
|
Less: Sales |
(3000) | ||||
| Books | 3000 | ||||
| Cash in Hand | 10900 | ||||
| Cash at Bank | 30000 | ||||
| 268900 | 268900 | ||||
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RELATED QUESTIONS
Explain the statement: “Receipt and Payment Account is a summarised version of Cash Book”.
What is Receipt and Payment Account? How is it different from Income and Expenditure Account?
The Receipt and Payment Account of Harimohan charitable institution is given:
Receipt and Payment Account for the year ending March 31, 2015
| Receipts | Amount (Rs) | Payments | Amount (Rs) |
| Balance b/d: | Furniture | 3000 | |
| Cash at Bank | 22000 | Investments | 55000 |
| Cash in Hand | 8800 | Advance for building | 20,000 |
| Donations | 16000 | Charities | 60000 |
| Subscriptions | 50200 | Salaries | 10400 |
| Endowment Fund | 60000 | Rent and Taxes | 4000 |
| Legacies | 12000 | Printing | 1000 |
| Interest on Investment | 3800 | Postage | 300 |
| Interest on Deposits | 800 | Advertisements | 1100 |
| Sale of old newspapers | 500 | Insurance | 4800 |
| Donation for building | 16000 | Balance c/d: | |
| Legacy for building | 12000 | Cash at Bank | 32000 |
| Cash in Hand | 10500 | ||
| 202100 | 202100 |
Prepare the Income and Expenditure Account for the Year ended on March 31, 2015 after considering the following:
- Liabilities to be provided for are:
Rent Rs 800; Salaries Rs 1,200; advertisement Rs 200. - Rs 2,000 due for interest on investment was not actually received.
Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017
Receipt and Payment Account
for the year ending March 31, 2017
| Receipts | Amount (Rs) | Payments | Amount (Rs) |
| Opening Cash in hand | 2,600 | Rent | 18,000 |
| Entrance fees |
3,200 |
Wages | 7,000 |
| Donation for building | 23,000 | Billiard table | 14,000 |
| Locker rent |
1,200 |
Furniture | 10,000 |
| Life membership fee |
7,000 |
Interest | 2,000 |
| Profit from entertainment |
3,000 |
Postage | 1,000 |
| Subscription | 40,000 | Salary | 24,000 |
| Cash in hand | 4,000 | ||
| 80,000 | 80,000 |
Prepare Income and Expenditure Account and Balance Sheet with help of following Information:
Subscription outstanding on March 31, 2016 is Rs 1,200 and Rs 2,300 on March 31, 2017, opening stock of postage stamps is Rs 300 and closing stock is Rs 200, Rent Rs 1,500 related to 2015 and Rs 1,500 is still unpaid.
On April 01, 2016 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500
On March, 31, 2017, The club took a loan of Rs 20,000 (@ 10% p.a.) in 2017.
From the following Receipt and Payment Account prepare final accounts of a Unity Club for the year ended March 31, 2017.
| Receipt and Payment Accounts for the year ending March 31, 2017 | ||||
| Receipts | Amount (Rs) | Payments | Amount (Rs) | |
| Balance b/d |
15,000 |
Furniture | 18,000 | |
| Sale of Old furniture (costing Rs 6,000) | 4,000 | Library books | 10,000 | |
| Subscriptions: | Salaries | 72,000 | ||
| 2015–16 | 18,000 | General expenses | 18,000 | |
| 2016–17 | 60,000 | Electric charges | 12,000 | |
| 2017–18 | 12,000 | 90,000 | Newspapers | 33,800 |
| Sale of old newspapers | 10800 | Postage | 3,000 | |
| Profit from entertainment |
44,000 |
Stationery | 40,000 | |
| Rent | 84000 | Audit fee | 8,000 | |
| Balance c/d | 33,000 | |||
| 2,47,800 | 2,47,800 | |||
| Balance Sheet as on March 31, 2016 | |||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Outstanding Salary | 6,000 | Cash | 15,000 |
| Capital Fund | 6,94,000 | Outstanding subscription | 18,000 |
| Library Books | 30,000 | ||
| Furniture | 37,000 | ||
| Land and Building | 6,00,000 | ||
| 7,00,000 | 7,00,000 | ||
Additional Information:
1. The club has 500 members each paying an annual subscription of Rs 150.
2. On 31.3.2016 salaries outstanding amounted to Rs 1200 and salaries paid included Rs. 6000 for the year 2015 - 16
3. Provide 5% depreciation on land and building.
Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017
Receipt and Payment Account
for the year ending December 31, 2017
| Receipts |
Amount (Rs) |
Payments | Amount (Rs) |
| Balance b/d | Charity | 11500 | |
| Cash in hand | 11500 | Rent and taxes | 3200 |
| Cash at bank | 12600 | Salary | 6000 |
| Donation | 9000 | Printing | 600 |
| Subscription | 42,800 | Postage | 300 |
| Legacies | 18,000 | Advertisements | 4500 |
| Interest on investment | 4,500 | Insurances | 2000 |
| Sale of old newspapers | 200 | Furniture | 21600 |
| Investment | 23000 | ||
| Balance c/d: | |||
| Cash in hand | 9900 | ||
| Cash at bank | 16000 | ||
| 98,600 | 98,600 |
Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments:
1. It was decided to treat one-third of the amount received on account of donation as income.
2. Insurance premium was paid in advance for three months.
3. Interest on investment Rs1,100 accrued was not received.
4. Rent Rs600: salary Rs900 and advertisement expenses Rs1,000 outstanding as on December 31, 2017.
From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended March 31, 2017 and the Balance Sheet as on that date.
Receipt and Payment Account
for the year ending March 31, 2017
| Receipts | Amount (Rs) | Payments | Amopunt (Rs) | |
| Balance b/d | 3500 | General expenses | 900 | |
| Subscription: | Salary | 16000 | ||
| 2015 - 16 | 2000 | 75000 | Postage | 1300 |
| 2016 - 17 | 70000 | Electricity charges | 7800 | |
| 2017 - 18 | 3000 | Furniture | 26500 | |
| Sale of old Books (Costing Rs 3,200) |
2000 | Books | 13000 | |
| Rent from use of hall | 17000 | Newspapers | 600 | |
| Sale of newspapers | 400 | Meeting expenses | 7200 | |
| Profit from entertainment | 7300 | T.V. set | 16000 | |
| Balance c/d | 15,900 | |||
| 105200 | 105200 | |||
Additional Information :
1. The club has 100 members each paying an annual subscription of Rs 900. Subscriptions outstanding on March 31, 2016 were Rs 3,600.
2. On March 31, 2017, salary outstanding amounted to Rs 1,000, Salary paid included Rs 1,000 for the year 2012.
3. On April 1, 2017 the club owned land and building Rs 25,000, furniture Rs 2,600 and books Rs 6,200.
From the information given below, prepare Receipts and Payments Account of Railway Club for the year ended 31st march, 2019:
|
(₹) |
|
(₹) |
||
| Cash in Hand on 1st April, 2018 | 4,390 | Salaries | 21,500 | |
| Subscription | 37,600 | Honorarium to Secretary | 2,500 | |
| Donations | 8,000 | Interest Received on Investments | 2,950 | |
| Entrance Fees | 4,300 | Printing and Stationery | 350 | |
| Rent Received for Club Halls | 5,250 | Petty Cash Expenses | 900 | |
| Electricity Charges | 3,440 | Insurance Premium Paid | 310 | |
| Taxes paid | 490 | |||
Bengal Cricket Club was inaugurated on 1st April, 2018. It had the following Receipts and Payments during the year ended 31st March, 2019:
Receipts: Entrance Fees ₹ 10,000; Subscriptions ₹ 60,000; Donations ₹ 10,000.
Payments: Rent ₹ 15,000; Postages ₹ 1,000; Newspapers and Magazines ₹ 8,000; Investments ₹ 30,000; Stationery ₹ 4,000; Entertainment Expenses ₹ 3,000; Miscellaneous Expenses ₹ 2,000.
Show the Receipts and Payments Account for the year ended 31st March, 2019.
From the following information, prepare Receipts and Payments Account of Long-town Sports Club for the year ending 31st March, 2019:
| Particulars |
(₹) |
Particulars |
(₹) |
|
| Opening Balance: | Charity Given | 10,000 | ||
| Cash in Hand | 50,000 | Match Expenses | 30,000 | |
| Cash at bank | 60,000 | Salaries | 63,600 | |
| Subscription Received: | Honorarium | 4,000 | ||
| 2017-18 | 4,000 | 12% Investment Purchased | 60,000 | |
| 2018-19 | 1,40,000 | Entrance Fees | 4,000 | |
| 2019-20 | 8,000 | Interest on 12% Investments | 6,000 | |
| Furniture Purchased | 70,000 | Closing Balance: | ||
| General Donations | 20,000 | Cash in Hand | 24,000 | |
| Donations for Tournament | 40,000 | Cash at Bank | ? | |
From the following particulars of Evergreen club, prepare Receipts and payments Account for the year ended 31st March,2019:
|
(₹) |
|
(₹) |
||
| Cash in Hand on 1st April,2018 | 50,000 | Newspaper and Magazines | 87,000 | |
| Cash at Bank on 1st April,2018 | 3,40,000 | Sale of Old Newspaper | 12,000 | |
| Subscriptions Received | 15,70,000 | Books Purchased | 3,40,000 | |
| Donations Received | 2,80,000 | Sports Materials Purchased | 4,70,000 | |
| Investments purchased | 5,00,000 | Interest on Investments Received | 50,000 | |
| Rent paid | 50,000 | Honorarium to coaches | 1,50,000 | |
| General Expenses | 2,30,000 | Cash in Hand on 31st March,2019 | 30,000 | |
| Postage and stationery | 25,000 | Cash at Bank on 31st March ,2019 | ? | |
From the following particulars of Glorious Club, prepare Receipts and Payments Account for the year ended 31st March 2019.
| Particulars | Amount(₹) |
| Opening balance of cash | 16,000 |
| Subscriptions (including ₹ 13,000 for 2017-18) | 93,000 |
| Investments purchased | 35,000 |
| Maintenance expenses | 15,000 |
| Locker rent | 40,000 |
| Life membership fees | 85,000 |
| Insurance premium | 6,000 |
Following is the Receipts and Payments Account of Indian Youth Club for the year ended 31st March, 2021.
| 'Receipts and Payments Account of Indian Youth Club for the year ended 31st March, 2021 |
|||||
| Receipts | Amount (₹) | Payments | Amount (₹) | ||
| To Balance b/d: | By Salaries | 3,60,000 | |||
| Cash | 25,000 | 3,10,000 | By Printing & Stationery | 19,000 | |
| Bank | 2,85,000 | By Printer | 40,000 | ||
| To Subscriptions (including ₹ 40,000 for year ending 31.3.2022) | 4,00,000 | By Investments | 80,000 | ||
| To Interest on Investments | 1,000 | By Balance cd: | |||
| Cash | 12,000 | 2,12,000 | |||
| Bank | 2,00,000 | ||||
| 7,11,000 | 7,11,000 | ||||
Additional Information:
- Investments were made on 1st October 2020 @ 5% p.a.
- Salaries for March 2021 ₹ 5,000 are unpaid.
- ₹ 3,000 are payable for stationery.
Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2021.
