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Question
Income and Expenditure Account is a ________ Account.
Options
Capital account
Real account
Personal account
Nominal account
Solution
Income and Expenditure Account is a Nominal Account.
Explanation:
In this account, only revenue items are recorded, while capital items are ignored. It is prepared to ascertain the results of the operating activities of the business over a period of time. All revenue items, i.e., both income and expenses, are recorded in it. Thus, it is treated as a nominal account.
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10% p.a. Depreciation on Furniture ₹ 50,000 (for three months)
Find odd one:
(Presentation of Subscription only)
| Balance Sheet as on 01.04.2018 | |||||
| Liabilities | Amt. ₹ | Amt. ₹ | Assets | Amt. ₹ | Amt .₹ |
|
Subscription received in Advance for 2018 - 19 |
20,000 | Outstanding Subscription | |||
| 2016 - 17 | 26,000 | 61,000 | |||
| 2017 - 18 | 35,000 | ||||
| Dr | Receipts and Payments Account for the year ending 31.03.2019. | Cr | |||||
| Receipts | Amt. ₹ | Amt. ₹ | Payments | Amt.₹ | Amt. ₹ | ||
| To Subscriptions | |||||||
| 2016 - 17 | 23,000 | 4,84,000 | |||||
| 2017 - 18 | 30,000 | ||||||
| 2018 - 19 | 4,10,000 | ||||||
| 2019 - 20 | 21,000 | ||||||
Adjustments :
Outstanding Subscription for 2018 - 19 is ₹ 32,000
With the above information present the item Subscription in Income and Expenditure Account for the year ended 31.03.2019 Balance Sheet as on the date.
| Dr | Receipts and Payments Account for the year ending 31.03.2018. | Cr | |||||
| Receipts | Amt. ₹ | Amt. ₹ | Payments | Amt.₹ | Amt. ₹ | ||
| To Subscriptions | |||||||
| 2016 - 17 | 2,000 | ||||||
| 2017 - 18 | 60,000 | ||||||
| 2018 - 19 | 4,500 | 66,500 | |||||
Adjustments :
Subscription Outstanding for the year 2017 - 18 is ₹ 6,000.
During previous year Subscription received in advance for 2017 - 18 is ₹ 2,000.
Outstanding subscription of 2016 - 2017 is ₹ 2,500
With the help of the above information present the item Subscription in Income and Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that date.
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
(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
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.
From the following receipts and payments account of Tenkasi Thiruvalluvar Manram, prepare income and expenditure account for the year ended 31st March, 2019.
| Receipts | ₹ | Payments | ₹ |
| To Balance b/d | By Salaries | 20,000 | |
| Cash in hand | 14,000 | By Rent | 24,000 |
| To Interest received | 5,000 | By Travelling expenses | 2,000 |
| To Subscription | 55,000 | By Printing and stationery | 6,000 |
| To Legacies | 48,000 | By Investments made | 50,000 |
| To Entrance fees | 7,000 | By Sports equipment purchased | 33,000 |
| To Sale of furniture (Book value: ₹ 17,000) |
16,000 | By Balance c/d | |
| Cash in hand | 10,000 | ||
| 1,45,000 | 1,45,000 |
How the following items will appear in the final accounts of a club for the year ending 31st March 2019?
| Dr. | Receipts and Payments Account for the year ended 31st March, 2019 | Cr. | ||
| Receipts | ₹ | ₹ | Payments | ₹ |
| To Subscription | ||||
| 2017 - 2018 | 10,000 | |||
| 2018 - 2019 | 50,000 | |||
| 2019 - 2020 | 5,000 | 65,000 | ||
There are 200 members in the club each paying an annual subscription of ₹ 400 per annum. Subscription still outstanding for the year 2017 - 2018 is ₹ 2,000.
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.
Show how the following items appear in the income and expenditure account of Sirkazhi Singers Association?
| Particulars | ₹ |
| Stock of stationery on 1.4.2018 | 2,600 |
| Purchase of stationery during the year | 6,500 |
| Stock of stationery on 31.3.2019 | 2,200 |
10% Depreciation on Furniture ₹ 12,000/- 3 Months
Complete the following table:
Rent received during the year
| Total Received (₹) |
Rent received in Advance/Accrued |
(₹) | Income for the Year |
| 1,700 | Accrued | ? | 2,150 |
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.
Complete the following Table:
| Rent | Outstanding Rent | Debited to Income & Expenditure A/c |
| 12,000 | 8,000 | ? |
Write the word/phrase/term which can substitute of the following statement:
The debit balance of Income and Expenditure Account.
Excess of expenditure over income is termed as ______.
From the following particulars relating to "Radha-Krishna Charitable Hospital". Prepare Income and Expenditure Account for the year ending 31 - 03 - 2023 and Balance Sheet as on that date.
| Dr. | Receipts and Payments Account for the year ending on 31- 03 - 2023 | Cr. | ||
| Receipts | Amount (₹) | Payments | Amount (₹) | |
| To Balance b/d | By Medicines Purchased | 82,000 | ||
| Cash | 16,460 | By General Expenses | 2,100 | |
| To Subscriptions | 1,04,000 | By Salaries | 47,000 | |
| To Donations (General) | 35,000 | By Stationery | 4,000 | |
| To Interest on Investments | 20,000 | By Expenses on Charity Show | 1,100 | |
| To Proceeds from Charity Show | By Surgery and Dispensary Exp. | 8,400 | ||
| By Equipments | 20,000 | |||
| By Balance c/d | ||||
| Cash in Hand | 1920 | 27,920 | ||
| Cash at Bank | 26,000 | |||
| 1,92,520 | 1,92,520 | |||
Additional Information:
| Particulars | 01-04-2022 (₹) | 31 - 03-2023 (₹) |
| 1. Subscription Due | 620 | 750 |
| 2. Subscription Received in Advance | 1,200 | 300 |
| 3. Stock of Medicines | 16,000 | 22,000 |
| 4. Estimated Value of Equipments | 30,000 | ? |
| 5. Buildings | 80,000 | ? |
| 6. Capital Fund | 3,41,880 | ? |
| 7. 10 % Investment | 2,00,000 | ? |
Provide Depreciation on Equipments ₹ 3,800 and on Building ₹ 3,000.
From the following transactions of Receipts and Payments Account of "Shalby Akhada", and the adjustments given, you are required to prepare Income and Expenditure Account and Balance Sheet as on 31st March, 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 | 12,000 | |||
| Cash in Hand | 10,000 | By Entertainment Expenses | 4,960 | ||
| To Subscriptions | By Sundry Expenses | 2,600 | |||
| 2021-22 | 36,000 | 36,820 | By Electricity Charges | 2,400 | |
| 2022 - 23 | 820 | By Rent | 1,400 | ||
| To Donations | 12,000 | By Investment | 30,000 | ||
| To Receipts from Entertainment | 10,800 | By Printing and Stationery | 1,600 | ||
| To Interest | 800 | By Postage | 6,400 | ||
| To Entrance Fees | 12,400 | By Fixed Deposit | 7,800 | ||
| By Balance c/d | |||||
| Cash in Hand | 1,660 | 13,660 | |||
| Cash at Bank | 12,000 | ||||
| 82,820 | 82,820 | ||||
Adjustments:
(1) There are 500 members paying an annual subscription of ₹ 100 each.
(2) Outstanding salary was ₹ 2,400.
(3) The Assets on 01 - 04 - 2021 were as follows:
Building ₹ 1,00,000, Furniture ₹ 30,000.
(4) Provide depreciation on Building and Furniture at 5% and 10% respectively.
(5) 50% Entrance Fees is to be capitalised.
(6) Interest on investment at 5% p.a. has accrued for 6 months.
(7) Capital fund is of ₹ 1,40,000 as on 01 - 04 - 2021.
From the following Receipts and Payments Account of "L.D. Engineering College'', for the year ending on 31 - 03 - 2023 and additional information, prepare Income and Expenditure Account for the year ending 31 - 03 - 2023 and Balance Sheet as on that date.
| Dr. | Receipts and Payments Account for the year ending 31- 03 - 2023 | Cr. | |
| Receipts | Amount (₹) | Payments | Amount (₹) |
| To Balance b/d | By Salaries to Teaching Staff | 9,36,000 | |
| Cash in Hand | 14,400 | By Electricity Charges | 44,000 |
| Cash at Bank | 80,320 | By Books | 48,800 |
| To Interest | 44,000 | By Furniture | 40,800 |
| To Subscriptions | 22,640 | By Stationery | 17,480 |
| To Life Membership Fees | 20,000 | By Fixed Deposit (31 - 03 - 2023) |
6,80,000 |
| To Donation | 5,60,000 | By Balance c/d | |
| To Tuition Fees | 9,84,000 | Cash in Hand | 13,320 |
| To Term Fees | 1,60,640 | Cash at Bank | 1,60,000 |
| To Sundry Receipts | 6,400 | ||
| To Admission Fees (Revenue) | 48,000 | ||
| 19,40,400 | 19,40,400 | ||
Additional Information:
| Particulars | 01-04-2022 (₹) | 31-03-2023 (₹) |
| Books | 4,80,000 | 4,80,000 |
| Furniture | 2,55,200 | 2,40,000 |
| Building Fund | 8,00,000 | ? |
| Fixed Deposit | 7,28,000 | ? |
| Capital Fund | 7,57,920 | ? |
(1) 50% of donation are for Building fund and the balance is to be treated as Revenue income.
(2) Outstanding subscription ₹ 4,240.
(3) Life membership fees are to be capitalised.
Find Surplus/Deficit:
| Sr. No. | Expenditure | Income | Surplus/Deficit |
| (i) | ? | 5,500 | 1,000 (Surplus) |
| (ii) | ? | 17,000 | 2,500 (Deficit) |
Mumbai University prepares ______ Account instead of a Profit and Loss account.
