question_answer
From the following receipts and payments account and information given below, prepare income and expenditure account and balance sheet of adult Literacy Organisation as on 31st December, 2017. Receipts and Payments Account Dr For the year ending 31st December, 2017 Cr | Receipts | | Amt (Rs.) | Payments | Amt (Rs.) |
| Balance b/d | | | General Expenses | 3,200 |
| Cash in Hand | | 4,000 | Newspaper | 1,850 |
| Cash at Bank | | 15,550 | Electricity | 3,000 |
| Subscriptions | | | Fixed Deposit with Bank (on 30th June, 2017) @ 10% p.a. | 18,000 |
| 2016 | 1,200 | | | |
| 2017 | 26,500 | | Book | 7,000 |
| 2018 | 500 | 28,200 | Salary | 3,600 |
| Sale of Old Newspapers | | 1,250 | Rent | 6,500 |
| Government Grant | | 12,000 | Postage Charges | 300 |
| Sale of Old Furniture (Book value Rs. 5,000) | | 3,700 | Furniture (purchased) | 10,500 |
| Interest Received on FD | | 450 | Balance c/d | |
| | | | Cash in Hand | 3,000 |
| | | | Cash at Bank | 8,200 |
| | | 65,150 | | 65,150 |
Information (i) Subscription outstanding as on 31st December, 2016, Rs. 2,000 and on 31st December, 2017, Rs. 1,500. (ii) On 31st December, 2017, salary outstanding Rs. 600 and one month rent paid in advance. (iii) On 31st January, 2016, organisation owned furniture Rs. 12,000, Books Rs. 5,000.
Answer:
Income and Expenditure Account Cr for the year ending 31st December, 2017 Cr | Expenditure | | Amt (Rs.) | Income | | Amt (Rs.) |
| General Expenses | | 3,200 | Subscriptions | | |
| Newspaper | | 1,850 | Total Subscription Received | 28,200 | |
| Electricity | | 3,000 | (+) Subscription Outstanding | | |
| Salary | 3,600 | | As on 31st Dec., 2017 | 2,300 | |
| (+) Outstanding Salary | 600 | 4,200 | | 30,500 | |
| Rent | 6,500 | | (-) Subscription Outstanding | | |
| (-) Prepaid Rent | (500) | 6,000 | As on 31st Dec., 2016 | (2,000) | |
| Postage Charges | | 300 | | 28,500 | |
| Loss on sale of Furniture | | 1,300 | (-) Subscription Received in | | |
| (5,000 ? 3,700) | | | Advance for 2018 | (500) | 28,000 |
| Excess of Income over | | | Sale of Old Newspaper | | 1,250 |
| Expenditure (Surplus) | | 22,300 | Interest Received on FD | 450 | |
| | | | (+) Accrued Interest | 450 | 900 |
| | | | Government Grant | | 12,000 |
| | | 42,150 | | | 42,150 |
Opening Balance Sheet as at 1st January, 2017 | Liabilities | Amt (Rs.) | Assets | Amt (Rs.) |
| Capital Fund (Balancing figure) | 38,550 | Furniture | 12,000 |
| | | Books | 5,000 |
| | | Subscription Outstanding | 2,000 |
| | | Cash at Bank | 15,550 |
| | | Cash in Hand | 4,000 |
| | 38,550 | | 38,550 |
Closing Balance Sheet as at 31st December, 2017 | Liabilities | | Amt (Rs.) | Assets | | Amt (Rs.) |
| Capital Fund | 38,550 | | Furniture | 12,000 | |
| (+) Surplus | 22,300 | 60,850 | (-) Sale | (5,000) | |
| Subscription Received in Advance | | 500 | | 7,000 | |
| Salary Outstanding | | 600 | (+) Purchased Furniture | 10,500 | 17,500 |
| | | | Books | 5,000 | |
| | | | (+) Purchased Book | 7,000 | 12,000 |
| | | | Fixed Deposit | 18,000 | |
| | | | (+) Interest Due | 450 | 18,450 |
| | | | Subscription Outstanding | | |
| | | | 2016 | 800 | |
| | | | 2017 | 1,500 | 2,300 |
| | | | Prepaid Rent | | 500 |
| | | | Cash at Bank | | 8,200 |
| | | | Cash in Hand | | 3,000 |
| | | 61,950 | | | 61,950 |
