53. Following Receipts and Payments Account was prepared from the Cash Book of Delhi Charitable Trust for
the year ending 31st March, 2020:
RECEIPTS AND PAYMENTS ACCOUNT for the year ending 31st March, 2020
Cr.
Receipts
₹
Payments
₹
To Balance b/d:
By Charity
1,15,000
Cash in Hand
1,15,000 By Rent and Taxes
32,000
Cash at Bank
1,26,000 By Salary
60,000
To Donation
90,000 By Printing
6,000
To Subscription
4,28,000 By Postage
3,000
To Legacy Donations
1,80,000 By Advertisements
45,000
To Interest on Investment
45,000 By Insurance
20,000
To Sale of Old Newspapers
2,000 By Furniture
2,16,000
By Investment
2,30,000
By Balance cld:
Cash in Hand
99,000
Cash at Bank
1,60,000
9,86,000
9,86,000
Prepare Income and Expenditure Account for the year ended 31st March, 2020 and Balance Sheet as on that
date after the following adjustments:
Insurance premium was paid for insurance taken w.e.f. 1st July, 2019.
(ii) Interest on investment * 11,000 accrued was not received.
(m) Rent 6,000; Salary 9,000 and advertisement expenses 10,000 were outstanding as on 31st March, 2020.
(iv) Legacy Donation is towards construction of Library Block.
(NCERT, Modified)
[Ans.: Surplus-2,75,000; Capital Fund (1st April, 2019)—2,41,000;
Total of Closing Balance Sheet-7,21,000.]
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Answers
Proper question:
Following Receipts and Payments Account was prepared from the Cash Book of Delhi Charitable Trust for the year ending 31st March, 2020:
RECEIPTS AND PAYMENTS ACCOUNT for the year ending 31st March, 2020.
(Dr.) Receipts (₹) :
To Balance b/d:
Cash in Hand: 1,15,000
Cash at Bank: 1,26,000
To Donation: 90,000
To Subscription: 4,28,000
To Legacy Donations: 1,80,000
To Interest on Investment: 45,000
To Sale of Old Newspapers: 2,000
Total: 9,86,000
(Cr.) Payments (₹) :
By Charity: 1,15,000
By Rent and Taxes: 32,000
By Salary: 60,000
By Printing: 6,000
By Postage: 3,000
By Advertisements: 45,000
By Insurance: 20,000
By Furniture: 2,16,000
By Balance c/d:
Cash in Hand: 99,000
Cash at Bank: 1,60,000
By Investment: 2,30,000
Total: 9,86,000
Prepare Income and Expenditure Account for the year ended 31st March, 2020 and Balance Sheet as on that
date after the following adjustments:
(I) Insurance premium was paid for insurance taken w.e.f. 1st July, 2019.
(ii) Interest on investment 11,000 accrued was not received.
(iii) Rent 6,000; Salary 9,000 and advertisement expenses 10,000 were outstanding as on 31st March, 2020.
(iv) Legacy Donation is towards construction of Library Block.
Answer: Refer the attachment.
(Income & expenditure account and Balance sheet as on 31.3.20 prepared.)
Balance sheet tallies at 7,21,000
Surplus: 2,75,000
Capital fund: 2,41,000
Income & Expenditure Account being a nominal account, here all revenue expenses & losses are debited whereas revenue incomes and gains are credited to it.
Balance sheet is a statement of assets & liabilities of the firm. It is prepared to measure and view exact financial position of the concern at the end of the year.
