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Question
The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017:
| Receipts | Amount (Rs) | Payments | Amount (Rs) |
| Balance from last year | 2270 | Rent | 6600 |
| Subscriptions | 32500 | Electric charges | 3,200 |
| Life membership fee | 3250 | Lecturer’s fee | 730 |
| Donation | 2500 | Office expenses | 1,480 |
| Profit from entertainment | 7250 | Printing and Stationery | 1,050 |
| Sale of old Books (books value Rs 1,000) | 750 | Legal fee | 1,870 |
| Interest | 350 | Books | 6,500 |
|
Furniture purchased |
8,600 | ||
| Expenses on nukar drama | 1,300 | ||
| Cash in hand | 8040 | ||
| Cash at bank | 9500 | ||
| 48870 | 48870 |
You are required to prepare an Income and Expenditure Account after the following adjustments:
(a) Subscription still to be received are Rs 750, but subscription include Rs 500 for the year 2018.
(b) In the beginning of the year the Sangh owned building Rs 20,000 and furniture Rs 3,000 and Books Rs 2,000.
(c) Provide depreciation on furniture @ 5% (including purchase), books @ 10% and building @ 5%.
Solution
Books of Nari Kalyan Samittee
Income and Expenditure Account
as on Dec. 31, 2017
Dr. Cr.
| Expenditure | Amount (Rs) | Income | Amount (Rs) | ||
| Rent | 6,600 | Subscription | 32,500 | 32,750 | |
| Electric Charges | 3,200 | Add: Outstanding for 2017 | 750 | ||
| Lecturer’s fee | 730 | 33,250 | |||
| Office Expenses | 1,480 | Less: Advance for 2018 | (500) | ||
| Printing and Stationery | 1,050 | Donation | 2500 | ||
| Legal Fee |
1,870 |
Profit from Entertainment | 7250 | ||
| Depreciation on: | Interest | 350 | |||
| Books | 750 | 2330 | |||
| Furniture |
580 |
||||
| Building | 1,000 | ||||
| Expenses on Nukar Drama | 1300 | ||||
| Loss on Sale of Books | 250 | ||||
| Surplus |
24,040 |
||||
| 42850 | 42850 | ||||
Balance Sheet
as on Dec. 31, 2016
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Capital Fund as Dec. 31, 2016 (Balancing Figure) |
27270 | Building | 20,000 |
| Furniture | 3000 | ||
| Books | 2000 | ||
| Cash and Bank | 2270 | ||
| 27270 | 27270 |
Balance Sheet
as on Dec. 31, 2017
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
| Capital Fund | 27,270 | 54,560 | Building | 20,000 | 19,000 |
| Add: Life Membership Fees | 3,250 | Less: 5% Depreciation | (1,000) | ||
| Add: Surplus | 24,040 | Furniture | 3,000 | 11,020 | |
| Advance Subscription for 2018 | 500 | Add: Purchases | 8,600 | ||
| 11,600 | |||||
| Less: 5% Depreciation | 580 | ||||
| Books | 2,000 | 6,750 | |||
| Add: Purchases | 6,500 | ||||
| 8,500 | |||||
| Less: Sales | 1,000 | ||||
| 7,500 | |||||
| Less: 10% Depreciation |
750 |
||||
| Cash in Hand | 8,040 | ||||
| Cash at Bank | 9,500 | ||||
| Subscription Outstanding | 750 | ||||
| 55060 | 55060 | ||||
APPEARS IN
RELATED QUESTIONS
From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2017.
Receipt and Payment Account for the year ending
as on December 31, 2017
| Receipts | Amount (Rs) | Payments | Amount (Rs) | |
| Balance b/d | General Expenses | 3,200 | ||
| Cash in hand | 4000 | News paper | 1850 | |
| Cash at Bank | 15550 | Electricity | 3000 | |
| Subscriptions | Fixed deposit with bank (on 31.06.2017) @ 10% p.a. |
18000 | ||
| 2016 | 1200 | 28200 | Books | 7000 |
| 2017 | 26500 | Salary | 3600 | |
| 2018 | 500 | Rent | 6500 | |
| Sale of old newspapers | 1250 | Postage charges | 300 | |
| Govt. grant | 12000 | Furniture (purchased) | 10500 | |
| Sale of old furniture (book value Rs 5, 000) | 3700 | Balance c/d | ||
| Interest received on FD | 450 | Cash in Hand | 3000 | |
| Cash at Bank | 8200 | |||
| 65150 | 65150 | |||
Information:
- Subscription outstanding as on 31.12. 2016 Rs 2,000 and on December 31, 2017 Rs 1,500.
- On December 31, 2017 Salary outstanding Rs 600, and one month rent paid in advance.
- On Jan. 01, 2016 organization owned Furniture Rs 12,000, Books Rs 5,000.
From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account and Balance Sheet for the year ending March 31, 2017.
| Dr. | Receipt and Payment Account for the year ending March 31, 2017 |
Cr. | |
| Receipts | Amount (Rs) | Payments | Amount (Rs) |
| Cash in hand as on 1.4.16 | 6,800 | Salaries | 24,000 |
| Subscription | 60,200 | Traveling Expenses | 6,000 |
| Donation | 3,000 | Stationery | 2,300 |
| Sale of furniture (Book value Rs 6,000) | 4,000 | Rent | 16,000 |
| Entrance fee | 800 | Repair | 700 |
| Life membership fee | 7,000 | Books purchased | 6,000 |
| Interest on investment (@ 5% for full year) | 5,000 | Building purchased | 30,000 |
| Cash in hand as 31.3.2017 | 1,800 | ||
| 86800 | 86800 | ||
Additional Information:
|
As on |
As on |
||
| i) | Subscription received in advance | 1,000 | 3,200 |
| ii) | Outstanding subscription |
2,000 |
3,700 |
| iii) | Stock of stationery | 1,200 | 800 |
| iv) | Books | 13,500 | 16,500 |
| v) | Furniture |
16,000 |
8,000 |
| vi) | Outstanding rent | 1,000 | 2,000 |
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| Particulars | ₹ |
| Match expenses paid during the year ended 31st March, 2019 | 1,02,000 |
| Match Fund as on 31st March, 2019 | 24,000 |
| Donation for Match Fund (Received during the year ended 31st March, 2019) | 40,000 |
| Proceeds from the sale of match tickets (Received during the year ended 31st March, 2019) | 15,000 |
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| Dr. | Receipts and Payment Account for the year ended 31st March, 2019 |
Cr. | |||
| Receipts | Amount (₹) | Payments | Amount (₹) | ||
| To Balanceb/d (Cash at Bank) |
2,01,000 | By Salaries of Nurses | 65,600 | ||
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| 5,99,300 | 5,99,300 | ||||
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| Receipts | Amount (₹) |
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