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Question
Prepare Income and Expenditure Account and Balance Sheet for the year ended December 31, 2016 from the following Receipt and Payment Account and Balance Sheet of culture club:
Receipt and Payment Account
for the year ending March 31, 2016
| Receipts | Amount (Rs) | Payments | Amount (Rs) | |
| Opening cash balance | 12000 | Furniture | 4,000 | |
| Subscription | Telephone expenses | 800 | ||
| 2014-2015 | 2,000 | 24,000 | Salary | |
| 2015-2016 |
22,000 |
2014-2015 | 1000 | |
| Entrance fees | 2,800 | 2015-2016 | 4000 | |
| Locker rent | 1000 | Newspapers | 700 | |
| Life membership fee | 1200 | Sundry expenses | 1,000 | |
| Government grant | 11,000 | Defence bonds | 18,000 | |
| Land | 20,000 | |||
| Closing cash balance | 2,500 | |||
| 52000 | 52,000 | |||
Balance Sheet
for the year ending March 31, 2015
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Advance locker rent |
200 |
Cash in hand | 12,000 |
| Subscription Received in |
1,000 |
Outstanding Expenses | 3,000 |
| Advance Outstanding salary | 2,000 | Building | 35,000 |
| Loan | 10,000 | ||
| Capital fund |
36,800 |
||
| 50000 | 50000 |
Solution
Books of Culture Club
Income and Expenditure Account
as on March 31, 2016
Dr. Cr.
| Expenditure | Amount (Rs) | Income | Amount (Rs) | |
| Telephone Expenses | 800 | Subscription | 22000 | 23000 |
| Salary | 4,000 | Add: Advance Received in 2015 | 1,000 | |
| Newspapers | 700 | Entrance Fees | 2,800 | |
| Sundry Expenses | 1,000 | Locker Rent | 1000 | 1200 |
| Surplus (Balancing figure) | 31,500 | Add: Advance Received in 2015 | 200 | |
| Government Grants | 11000 | |||
| 38000 | 38000 | |||
Balance Sheet
as on March 31, 2016
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
| Capital Fund |
36,800 |
69,500 | Subscription Still Outstanding for 2015 (Rs 3,000 – Rs 2,000) |
1,000 |
| Add: Life Membership Fees | 1,200 | Furniture | 4,000 | |
| Add: Surplus |
31,500 |
Defence Bonds | 18,000 | |
| Salary Still Outstanding for 2015 | 1000 | Land | 20,000 | |
| Loan | 10000 | Building | 35,000 | |
| Cash in Hand | 2,500 | |||
| 80500 | 80500 | |||
APPEARS IN
RELATED QUESTIONS
How are the following dealt with while preparing the final accounts for the year ended 31st March, 2019?
|
RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT) |
||||
|
Dr. |
|
Cr. | ||
| Receipts | ₹ |
Payments |
₹ | |
|
|
By Payments for Medicines | 1,50,000 | ||
Additional information :
| As at 1st April, 2018 (₹) |
As at 31st March, 2019 (₹) |
|
| Stock of Medicines | 50,000 | 75,000 |
| Creditors for Medicines | 40,000 | 60,000 |
How are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March, 2019?
RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31st March, 2019
| Dr. | Cr. | |||
|
Receipts |
₹ | Payments | ₹ | |
| To Sale of Sports Materials | 26,000 | By Creditors for Sports Materials | 61,000 | |
| (Book value ₹ 20,000) | By Cash purchase of Sports Materials | 10,000 | ||
Additional information :
| As at 31st March, 2018 (₹) |
As at 31st March, 2019 (₹) |
|
| Sports Materials | 20,000 | 25,000 |
| Creditors for Sports Materials | 7,000 | 15,000 |
How are the following items dealt with while preparing Income and Expenditure Account of a club for the year ended 31st March, 2019?
| 1st April, 2018 (₹) |
31st March, 2019 (₹) | |
| Outstanding Locker Rent | 4,600 | 6,300 |
| Advance Locker Rent | 3,000 | 4,000 |
Locker Rent received during the year ended 31st March, 2019 – ₹ 52,000.
How will the following items be treated while preparing the Income and Expenditure Account and Balance Sheet of a Not-for-profit-organization for the year ended 31st March 2019?
| As at 1-4-2018 | As at 31-3-2019 | |
| (₹) | (₹) | |
| Creditors for sports materials | 18,000 | 41,000 |
| Stock of sports materials | 27,000 | 38,000 |
During 2018-19 the payment made to creditors for sports material was ₹ 5,23,000.
The Income and Expenditure Account is prepared on which basis with the help of the Receipts and Payments Account?
Arrange the Steps in Ascending order in the preparation of the income and Expenditure Account?
- Pursue the Receipt and Payment Account thoroughly.
- Exclude the opening and closing balances of cash and bank as they are not an income.
- Consider the following items not appearing in the Receipt and Payment Account that need to be taken into account for determining the surplus I deficit for the current year: (1) Depreciation affixed assets. (2) Provision for doubtful debts, if required. (3) Profit or loss on sale of affixed assets.
- Consider only the revenue receipts to be shown on the income side of the Income and Expenditure Account. Some of these need to be adjusted by excluding the amounts relating to the preceding and the succeeding periods and including the amounts relating to the current year not yet received.
- Take the revenue expenses to the expenditure side of the Income and Expenditure Account with due adjustments as per the additional information provided relating to the amounts received in advance and those not yet received.
- Exclude the capital receipts and capital payments as these are to be shown in the Balance Sheet.
What is the nature of sales of periodicals?
Any gain or loss on the sale of the old assets is taken to which account in the case of a 'not-for-profit' organization?
The following information has been extracted from the financial statements of a not-for-profit organization for the year ended 31st March, 2019:
| Particulars | Amount (₹) |
| Opening Balance of Match Fund | 5,00,000 |
| Sale of Match tickets | 3,75,000 |
| Donation for Match Fund received during the year |
1,24,000 |
| Match expenses | 10,00,000 |
Which of the following statements is correct for the presentation of the above items in the financial statements of the not-for-profit organization?
Subscriptions received in cash during the year amounted to ₹ 40,000; subscription outstanding at the end of the previous year was ₹ 1,500 and outstanding at the end of the current year was ₹ 2,000. Subscription received in advance for next year was ₹ 800. The amount credited to the Income and Expenditure Account will be:
Subscription Outstanding at the beginning of the current year will be:
Subscriptions received in cash during the year amount to ₹ 50,000, the amount received in advance for the next year is ₹ 5,000, and the amount outstanding for the current year was ₹ 5,000. The amount to be debited to the Income and Expenditure Account is:
From the following which item is not entered in the Income and Expenditure Account?
In Receipts and Payments, Account ______ balance is carried forward to the same account for the next accounting period.
Salary paid for the year ended 31st March, 2010 amounted to ₹ 75,000. How much amount will be recorded in Income and Expenditure Account in the following case?
| Year | 31-3-2009 | 31-3-2010 |
| Outstanding Salary | 6,500 | 6,000 |
| Prepaid Salary | 1,200 | 1,000 |
Receipts and payments account is prepared with the help of:
The opening balance of Prize Fund was ₹ 32,800. During the year, donations received towards this fund amounted to ₹ 15,400 amount spent on prizes was ₹ 12,300 and interest received on Prize Fund Investment was ₹ 4,000. The closing balance of Prize Fund will be ______.
Income and expenditure account is prepared by:
