question_answer
From the following receipts and payments account, prepare income and expenditure account for the year ending 31st December, 2018 and balance sheet. Receipts and Payments Account Dr for the year ending 31st December, 2018 Cr Receipts | Amt (Rs.) | Payments | Amt (Rs.) |
To Balanced b/d | 4,080 | By Salaries | 14,400 |
To Subscriptions | 36,120 | By Travelling Expenses | 3,600 |
To Donations | 1,800 | By Stationery | 1,380 |
To Sale of Furniture (Book value Rs. 3,600) | 2,400 | By Rent | 9,600 |
To Entrance Fees | 480 | By Repairs | 420 |
To Life Membership Fees | 4,200 | By Books Purchased | 3,600 |
To Interest on Investment @5% for Full Year | 3,000 | By Building Purchased | 18,000 |
| | By Balance c/d | 1,080 |
| 52,080 | | 52,080 |
Additional Information | Particulars | 1st January, 2018 (Rs.) | 31st December, 2018, (Rs.) |
(i) | Subscription Received in Advance | 600 | 1,920 |
(ii) | Outstanding Subscription | 1,200 | 2,220 |
(iii) | Stock of Stationery | 720 | 480 |
(iv) | Books | 8,100 | 9,900 |
(v) | Furniture | 9,600 | 4,800 |
(vi) | Outstanding Rent | 600 | 1,200 |
Answer:
Income and Expenditure Account Dr for the year ending 31st December, 2018 Cr Expenditure | | Amt (Rs.) | Income | | Amt (Rs.) |
To Salaries | | 14,400 | By subscription | 36,120 | |
To Travelling Expenses | | 3,600 | (+) Outstanding for Current Year | 2,220 | |
To Stationery Consumed Opening Stock | 720 | | (+) Advance Received in Previous year | 600 | |
(+) Purchases | 1,380 | | | 38,940 | |
| 2,100 | | | | |
(-) Closing Stock | (480) | 1,620 | (-) Outstanding for Previous Year | (1,200) | |
To Rent | | 9,600 | | 37,740 | |
(+) Outstanding for Current Year | 1,200 | | | | |
| 10,800 | | (-) Advance Received in Current Year | (1,920) | 35,820 |
(-) Outstanding for Previous Year | (600) | 10,200 | By Donations | | 1,800 |
To Repairs | | 420 | By Entrance Fees | | 480 |
To Books | | | By Interest on Investments | | 3,000 |
Opening Stock | 8,100 | | | | |
(+) Purchases | 3,600 | | | | |
| 11,700 | | | | |
(-) Closing Stock | (9,900) | 1,800 | | | |
To Loss on Sale of Furniture (3,600 - 2,400) | | 1,200 | | | |
To Depreciation on Furniture (9,600 - 3,600 - 4,800) | | 1,200 | | | |
To Surplus i.e., Excess of Income over Expenditure | | 6,660 | | | |
| | 41,100 | | | 41,100 |
Balance Sheet as at 31st December, 2018 Liabilities | | Amt (Rs.) | Assets | Amt (Rs.) |
Advance Subscription | | 1,920 | Cash | 1,080 |
Outstanding Rent | | 1,200 | Outstanding Subscription | 2,220 |
Capital Fund | 82,500 | | Stationery | 480 |
(+) Surplus | 6,660 | 89,160 | Books | 9,900 |
Life Membership Fees | | 4,200 | Furniture | 4,800 |
| | | Investment | 60,000 |
| | | Building | 18,000 |
| | 96,480 | | 96,480 |
Balance Sheet as at 31st December, 2017 Liabilities | Amt (Rs.) | Assets | Amt (Rs.) |
Advance Subscription | 600 | Cash | 4,080 |
Outstanding Rent | 600 | Outstanding Subscription | 1,200 |
Capital Fund | 82,500 | Stationery | 720 |
(Balancing figure) | | Books | 8,100 |
| | Furniture | 9,600 |
| | Investment | 60,000 |
| 83,700 | | 83,700 |