The Receipt and Payment Account of Harimohan charitable institution is given: Receipt and Payment Account for the year ending March 31, 2015 Receipts Amount Rs Payments Amount Rs Balance b/d: Furniture 3,000 Cash at Bank 22,000 Investments 55,000 Cash in Hand 8,800 Advance for building 20,000 Donations 32,000 Charities 60,000 Subscriptions 50,200 Salaries 10,400 Endowment Fund 60,000 Rent and Taxes 4,000 Legacies 24,000 Printing 1,000 Interest on Investment 3,800 Postage 300 Interest on Deposits 800 Advertisements 1,100 Sale of old newspapers 500 Insurance 4,800 Balance c/d: Cash at Bank 32,000 Cash in Hand 10,500 2,02,100 2,02,100 Prepare the Income and Expenditure Account for the Year ended on March 31, 2015 after considering the following: (i) It was decided to treat Fifty per cent of the amount received on account of Legacies and Donations as income. (ii) Liabilities to be provided for are: Rent Rs 800; Salaries Rs 1,200; advertisement Rs 200. (iii) Rs 2,000 due for interest on investment was not actually received.
Answers
Given : The Receipt and Payment Account of Harimohan charitable institution is given: Receipt and Payment Account for the year ending March 31, 2015
Receipts Amount Rs Payments Amount Rs Balance b/d: Furniture 3,000 Cash at Bank 22,000 Investments 55,000 Cash in Hand 8,800 Advance for building 20,000 Donations 32,000 Charities 60,000 Subscriptions 50,200 Salaries 10,400 Endowment Fund 60,000 Rent and Taxes 4,000 Legacies 24,000 Printing 1,000 Interest on Investment 3,800 Postage 300 Interest on Deposits 800 Advertisements 1,100 Sale of old newspapers 500 Insurance 4,800 Balance c/d: Cash at Bank 32,000 Cash in Hand 10,500 2,02,100 2,02,100.
Solution :
The Income and Expenditure Account for the Year ended on March 31, 2015 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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Prepare Income and Expenditure Account and Balance Sheet for the year ended December 31, 2016 from the following Receipt and Payment Account and Balance Sheet of culture club: Receipt and Payment Account for the year ending March 31, 2016 Receipts Amount Rs Payments Amount Rs Opening cash balance 12,000 Furniture 4,000 Subscription Telephone expenses 800 2014-2015 2,000 Salary 2015-2016 22,000 24,000 2014-2015 1,000 Entrance fees 2,800 2015-2016 4,000 Locker rent 1,000 Newspapers 700 Life membership fee 1,200 Sundry expenses 1,000 Government grant 11,000 Defence bonds 18,000 Land 20,000 Closing cash balance 2,500 52,000 52,000 Balance Sheet for the year ending March 31, 2015 Liabilities Amount Rs Assets Amount Rs Advance locker rent 200 Cash in hand 12,000 Subscription Received in Advance 1,000 Outstanding Expenses 3,000 Outstanding salary 2,000 Building 35,000 Loan 10,000 Capital fund 36,800 50,000 50,000
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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 Cash in hand Cash at bank 10,900 30,000 2,60,200 2,60,200 Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments: Subscription for 2017, still owing were Rs 7,000. Interest due on defence bonds was Rs7,000, Rent still owing was Rs 1,000. The Book value of investment sold was Rs 80,000, Rs 30,000 of the investment were still in hand. Subscription received in 2017 included Rs 400 from a life member. The total furniture on January 1, 2017 was worth Rs 12,000. Salary paid for the year 2018 is Rs 2,000.
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