question_answer
Following is the receipts and payments account of Sai Club for the year ended 31st December, 2017: Receipts and Payments Account Dr for the year ending 31st December, 2017 Cr | Receipts | | Amt (Rs.) | Payment | | Amt (Rs.) |
| Balance b/d | | | Salaries | | |
| Cash | 2,000 | | Secretary | 6,000 | |
| Bank | 12,000 | 14,000 | Staff | 5,000 | 11,000 |
| Subscription | | | Canteen Expenses | | 12,000 |
| for 2016 | 500 | | Miscellaneous Expenses | | 2,500 |
| for 2017 | 5,500 | | Construction of Building | | 15,000 |
| for 2018 | 400 | 6,400 | Balance c/d | | |
| Interest from Bank | | 1,000 | Cash | 1,300 | |
| Sale Proceeds of Old Newspapers | | 400 | Bank | 4,000 | 5,300 |
| Sale of Old Furniture | | 2,000 | | | |
| Canteen Collection | | 12,000 | | | |
| Donations for Building Fund | | 10,000 | | | |
| | | 45,800 | | | 45,800 |
With the additional information given below, prepare the income and expenditure account for the year ended 31st December, 2017 and the balance sheet as on that date: | | Particulars | 31st December, 2016 (Rs.) | 31st December, 2017 (Rs.) |
| (i) | Subscription Receivable | 1,000 | 600 |
| (ii) | Subscription Received in Advance | 200 | 400 |
| (iii) | Salary of Staff Outstanding | 1,000 | 2,000 |
| (iv) | Canteen Expenses Prepaid | 1,000 | 1,500 |
| (v) | Furniture at Book Value | 14,000 | - |
| (vi) | Buildings | 15,000 | - |
| (vii) | Fixed Deposit with Bank | 10,000 | 10,000 |
| (viii) | Book Value of Furniture sold during 2017 was Rs. 3,500 | | |
| (ix) | Charge Depreciation on Furniture at 10 p.a. on The Closing Balance | | |
Answer:
Income and Expenditure Account Dr for the year ending 31st December, 2017 Cr | Expenditure | | Amt (Rs.) | Income | | Amt (Rs.) |
| To Salaries | | | By Subscription | 5,500 | |
| Secretary | 6,000 | | (+) Outstanding Subscription for | | |
| Staff | 6,000 | 12,000 | Current Year | 100 | |
| (5,000 - 1,000 + 2,000) | | | (+) Advance Subscription Received | | |
| To Miscellaneous Expenses | | 2,500 | In Previous Year for Current Year | 200 | 5,800 |
| To Loss on Sale of Furniture | | | By Canteen Collections | 12,000 | |
| Book Value | 3,500 | | (-) Expenses (12,000+1,000 ? 1,500) | (11,500) | 500 |
| (-) Sale Proceeds | (2,000) | 1,500 | By Interest from Bank | | 1,000 |
| To Depreciation on Furniture | | 1,050 | By Sale of Old Newspapers | | 400 |
| 10% on 10,500 (14,000 - 3,500) | | | By Excess of Expenditure over | | |
| | | | Income | | 9,350 |
| | | 17,050 | | | 17,050 |
Balance Sheet as at 31st December, 2017 | Liabilities | | Amt (Rs.) | Assets | | Amt (Rs.) |
| Capital Fund | | | Cash in Hand | | 1,300 |
| On 1st January, 2017 | 53,800 | | Cash at Bank | | 4,000 |
| (-) Excess of Expenditure over | | | Fixed Deposit | | 10,000 |
| Income | (9,350) | 44,450 | Furniture | | |
| Subscriptions Received in Advance | | 400 | As on 1st January, 2017 | 14,000 | |
| Salary Payable | | 2,000 | (-) Sold During the Year | (3,500) | |
| Building Fund | | 10,000 | | 10,500 | |
| | | | (-) Depreciation | (1,050) | 9,450 |
| | | | Buildings | | |
| | | | As on 1st January, 2017 | 15,000 | |
| | | | Additions | 15,000 | 30,000 |
| | | | Subscriptions Receivable (500 + 100) | | 600 |
| | | | Canteen Expenses Prepaid | | 1,500 |
| | | 56,850 | | | 56,850 |
Balance Sheet as at 31st December, 2016 | Liabilities | Amt (Rs.) | Assets | Amt (Rs.) |
| Salary Outstanding | 1,000 | Cash in Hand | 2,000 |
| Subscriptions Received in Advance | 200 | Cash at Bank | 12,000 |
| Capital Fund Balancing Figure | 53,800 | Fixed Deposit | 10,000 |
| | | Building | 15,000 |
| | | Furniture | 14,000 |
| | | Subscriptions Receivable | 1,000 |
| | | Prepaid Canteen Expenses | 1,000 |
| | 55,000 | | 55,000 |
