From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2017. Receipt and Payment Account for the year ending as on December 31, 2017 Receipts Amount Rs Payments Amount Rs Balance b/d General Expenses 3,200 Cash in hand 4,000 News paper 1,850 Cash at Bank 15,550 Electricity 3,000 Subscriptions Fixed deposit with bank (on 31.06.2017) @ 10% p.a. 18,000 2016 1,200 2017 26,500 Books 7,000 2018 500 28,200 Salary 3,600 Sale of old newspapers 1,250 Rent 6,500 Govt. 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 31.12.2016 Rs 2,000 and on December 31, 2017 Rs 1,500. (ii) On December 31, 2017 Salary outstanding Rs 600, and one month Rent paid in advance. (iii) On Jan. 01, 2016 organisation owned Furniture Rs 12,000, Books Rs 5,000.
Answers
Given : Adult Literacy Organisation as on December 31, 2017. Receipt and Payment Account for the year ending as on December 31, 2017 Receipts Amount Rs Payments Amount Rs Balance b/d General Expenses 3,200 Cash in hand 4,000 News paper 1,850 Cash at Bank 15,550 Electricity 3,000 Subscriptions Fixed deposit with bank (on 31.06.2017) @ 10% p.a. 18,000 2016 1,200 2017…….
Concept :
Income and expenditure account :
- It is like a profit and loss account.
- It is a Nominal account.
- It has income (credit) and expenditure (debit) side.
- It has no opening balance.
- Its balance is either Surplus or Deficiency.
- It records items of revenue nature only.
- Adjustments such as depreciation, outstanding expenses , prepaid expenses , accrued income , etc.are made in it.
Receipt and payment account :
- A Receipt and payments account is a summary of cash book transactions relating to a particular accounting period, usually 1 year.
- All receipts, whether in a cash or cheques, are shown on the debit side and all payments , whether made in cash or by cheque, are shown on the credit side of Receipts and Payments account .
- It includes all receipts and payments whether they are of revenue or capital nature.
Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2017 are in the attachment below :
Hope this answer will help you..
Some more questions of this chapter :
Following is the Receipt and Payment account of Rohatgi Trust : Receipt and Payment Account for the year ending December 31, 2017 Receipts Amount Rs Payments Amount Rs Cash in hand 14,000 Rent 6,000 Cash at Bank 60,000 Salary 12,000 Subscriptions: 2016 2017 2018 5,000 83,000 3,000 91,000 Postage Electricity charges Purchase of furniture Books 300 6,000 20,000 3,000 Sale of Investment 90,000 Defence Bonds 1,50,000 Interest on investment 2,000 Help to needy students 22,000 Sale of furniture (book value Rs 3,000) 3,200 ……….
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Leela and Meeta were partners in a firm sharing profits and losses in the ratio of 5:3. On Is Jan. 2017 they admitted Om as a new partner. On the date of Om’s admission the balance sheet of Leela and Meeta showed a balance of Rs 16,000 in general reserve and Rs 24,000 (Cr) in Profit and Loss Account. Record necessary journal entries for the treatment of these items on Om’s admission. The new profit sharing ratio between Leela, Meeta and Om was 5:3:2.
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Answer:
the answer in pic u can check
