Question

Given below is the Balance Sheet of ‘Bhanubai Mahila Seva Kendra’ as on 1st April 2019 and Receipts and Payments account for the year ending 31st March 2020:

Balance Sheet as on 1st April 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital fund:	40,000	Machinery	10,000
Outstanding Expenses:		Furniture	20,000
Wages	8,000	Government Bonds	6,500
Electricity	7,000	Outstanding Subscription	8,500
Stationery	1,000	Cash at bank	10,000
		Cash in hand	1,000
	56,000		56,000

 

Dr.	Receipts and Payments Account for the year ended 31st March 2020				Cr.
Receipts		Amount (₹)	Amount (₹)	Payments	Amount (₹)
To Balance b/d				By Electricity Charges	25,000
Cash in hand			1,000	By Wages	22,000
Cash at bank			10,000	By Stationery	3,000
To Subscription			50,000	By Rent and Taxes	11,800
2018 - 2019		2,000		By Travelling Expenses	8,000
2019 - 2020		45,000		By Balance c/d
2020 - 2021		3,000		Cash in hand	4,000
To Entrance fees			28,000	Cash at bank	20,200
To Other receipts			5,000
			94,000		94,000

Additional information:

1. Outstanding wages ₹ 450.
2. Entrance fees should be capitalised.
3. Depreciate furniture at 10% p.a.
4. Subscription for 2019 - 20 was outstanding ₹ 3,000.

Prepare:

1. Income and Expenditure account for the year ended 31st March 2020.
2. Balance Sheet as on 31st March 2020.

Answer 1

In the books of Bhanubai Mahila Seva Kendra
Dr.	Income and Expenditure Account for the Year Ended 31st March 2020				Cr.
Expenditure	Amount (₹)	Amount (₹)	Income	Amount (₹)	Amount (₹)
To Electricity Charges	25,000	18,000	By Subscription		48,000
Less: Outstanding (2018 - 19)	7,000		2019 - 20	45,000
To Wages	22,000	14,450	Add: Outstanding	3,000
Less: Outstanding (2018 - 19)	8,000		By Other receipts		5,000
	14,000		By Deficit (Excess of Expenditure over Income)		3,250
Add: Outstanding	450
To Stationery	3,000	2,000
Less: Outstanding	1,000
To Travelling Expenses		8,000
To Depreciation on Furniture		2,000
To Rent and Taxes		11,800
		56,250			56,250

 

Balance Sheet as on 31st March 2020
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital Fund	40,000	64,750	Machinery		10,000
Add: Entrance fees	28,000		Furniture	20,000	18,000
	68,000		Less: Depreciation (10%)	2,000
Less: Deficit	3,250		Government Bonds		6,500
Outstanding Wages		450	Outstanding subscription		9,500
Advance Subscription		3,000	2018 - 19	6,500
			2020 - 21	3000
			Cash in Hand		4,000
			Cash at Bank		20,200
		68,200			68,200