The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017: Receipts Amount Rs Payments Amount Rs Balance from last year 2,270 Rent 6,600 Subscriptions 32,500 Electric charges 3,200 Life membership fee 3,250 Lecturer’s fee 730 Donation 2,500 Office expenses 1,480 Profit from entertainment 7,250 Printing and Stationery 1,050 Sale of old Books (books value Rs 1,000) 750 Legal fee 1,870 Interest 350 Books 6,500 Furniture purchased 8,600 Expenses on nukar drama 1,300 Cash in hand 8,040 Cash at bank 9,500 48,870 48,870 You are required to prepare an Income and Expenditure Account after the following adjustments: (a) Subscription still to be received are Rs 750, but subscription include Rs 500 for the year 2018. (b) In the beginning of the year the Sangh owned building Rs 20,000 and furniture Rs 3,000 and Books Rs 2,000. (c) Provide depreciation on furniture @ 5% (including purchase), books @ 10% and building @ 5%.
Answers
Given : The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017:
Receipts Amount Rs Payments Amount Rs Balance from last year 2,270 Rent 6,600 Subscriptions 32,500 Electric charges 3,200 Life membership fee 3,250 Lecturer’s fee 730 Donation 2,500 Office expenses 1,480 Profit from entertainment 7,250 Printing and Stationery 1,050 Sale of old Books (books value Rs 1,000) 750 Legal fee 1,870 Interest 350 Books 6,500 Furniture purchased 8,600 Expenses on nukar drama 1,300 Cash in hand 8,040 Cash at bank 9,500 48,870 48,870 .
Solution :
The Income and Expenditure Account is in the attachment below :
Extra information :
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.
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Answer:
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