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Dear Student

Income & Expenditure A/c
For the year ended December 31, 2020
Particulars	Amount	Particulars	Amount
To Salaries	1300	By Subscription (2800-300-500)	2000
To Postage consumption		By Sales of Grass	400
(100+1000-300)	800	By Grant from the local authority	2000
To Diet Expenses	450	To Interest (3000*12% + 3000*12%*6/12)	540
To Loss on Sale of Computer	4000	To Deficiency	10
	6550		6550

 

Balance Sheet as on December 31, 2020
Liabilities		Amount	Assets	Amount
Capital	18000		Cash	5000
Add: Profit / Loss	1610	16390	Bank	3270
Legacy		1000	Postage Stamps	300
Advance Interest		180	Car	3500
Advanced Subscription		500	Fixed Deposit	6000
		18070		18070

 

Balance Sheet as on December 31, 2019
Liabilities	Amount	Assets	Amount
Capital Fund	18000	Bank	2500
O/s Salary	200	O/s Subs	300
		Postage Stamps	100
		Computer	10000
		Cash	2300
		Investments	3000
	18200		18200

Legacy is capital receipt.
720 @ 12% is interest on a total of 6000 amount (720/12%)
3000 out of which is purchased on 1.07.20
Which means 3000 was opening balance.

REGARDS