question_answer
Following is the receipts and payments account of Green Club for the year ended 31st March, 2018. Receipts and Payments Account Dr for the year ending 31 st March, 2018 Cr Receipts | | Amt (Rs.) | Payments | Amt (Rs.) |
To Balance b/d | | 15,640 | By Salary | 2,400 |
To Subscriptions | | | By Newspaper | 1,640 |
2016-17 | 960 | | By Electricity Bill | 800 |
2017-18 | 21,200 | | By 9% Investments (1st July, 2017) | 16,000 |
2018-2019 | 400 | 22,560 | By Books | 8,480 |
To Sale of Old Newspapers | | 1,000 | By Rent | 5,440 |
To Government Grants | | 8,000 | By Furniture | 8,400 |
(Book Value Rs. 5,600) | | | By Balance c/d | 8,960 |
To Interest on Investments | | 360 | | |
| | 52,120 | | 52,120 |
Additional Information (i) The club owned furniture Rs. 12,000 and Books Rs. 5,600 on 1st April, 2017. (ii) Salary and rent were outstanding Rs, 480 and Rs. 960 on 31st March, 2018. (iii) Subscription outstanding on 31st March, 2017 was Rs. 1,600 and on 31st March 3 Was Rs. 2,000. Prepare income and expenditure account and balance sheet for the year ending 31st March, 2018.
Answer:
Income and Expenditure Account Dr for the year ending 31st March, 2018 Cr Expenditure | | Amt (Rs.) | Income | | Amt (Rs.) |
To Loss on Sale of Furniture | | 1,040 | By Subscription | 21,200 | |
To Salary | 2,400 | | (+) Subscription Outstanding for Current Year (2,000-640) | 1,360 | 22,560 |
(+) Outstanding for Current Year | 480 | 2,880 | By Sale of Old Newspaper | | 1,000 |
To Newspaper | | 1,640 | By Government Grant | | 8,000 |
To Rent | 5,440 | | By Interest on Investment | 360 | |
(+) Outstanding for Current Year | 960 | 6,400 | (+) Accrued Interest | 720 | 1,080 |
To Surplus, i.e. Excess of Income | | | | | |
Over Expenditure | | 19,880 | | | |
| | 32,640 | | | 32,640 |
Balance Sheet as at 31st March, 2018 Liabilities | | Amt (Rs.) | Assets | | Amt (Rs.) |
Salary Outstanding | | 480 | Cash | | 8,960 |
Rent Outstanding | | 960 | Subscription Outstanding | | |
Advance Subscription | | 400 | Previous Year (1,600 ? 960) | 640 | |
Capital Fund | 34,840 | | Current Year (2,000 ? 640) | 1,360 | 2,000 |
(+) Surplus | 19,880 | 54,720 | 9% Investments | | 16,000 |
| | | Accrued Interest on Investment | | 720 |
| | | Books | 5,600 | |
| | | (+) Purchase | 8,480 | 14,080 |
| | | Furniture | 12,000 | |
| | | (+) Purchase | 8,400 | |
| | | | 20,400 | |
| | | (-) Sale | (5,600) | 14,800 |
| | 56,560 | | | 56,560 |
Balance Sheet As at 31st March, 2017 Liabilities | Amt (Rs.) | Assets | Amt (Rs.) |
Capital Fund | 34,840 | Cash | 15,640 |
| | Furniture | 12,000 |
| | Books | 5,600 |
| | Subscription Outstanding | 1,600 |
| 34,840 | | 34,840 |
Working Note Accured Interest on Investments \[=16,000\times \frac{9}{100}\times \frac{9}{12}-360=1,080-360=\text{Rs}\text{.}\,720\]