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