Following is the Receipt and Payment account of Rohatgi Trust :

Receipt and Payment Account 

for the year ending December 31, 2006

Receipts

Amount

Rs

Payments

Amount

Rs

Cash in hand

 

14,000

Rent

6,000

Cash at Bank

 

60,000

Salary

12,000

Subscriptions:

2005

2006

2007

 

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 old 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, 2006, and a balance sheet as on that date after the following adjustments: Subscription for 2006, 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 2006 included Rs 400 from a life member. The total furniture on January 1, 2006 was worth Rs 12,000. Salary paid for the year 2007 is Rs 2,000.

Books of Rohatgi Trust

Income and Expenditure Account 

as on December 31, 2006

Dr.

 

Cr.

Expenditure

Amount

 Rs

Income

Amount

 Rs

Rent

6,000

 

Subscription

83,000

 

Add: Outstanding

1,000

7,000

Add: Outstanding for 2006

7,000

 

 

 

90,000

 

Salary

12,000

 

Less: Life Membership Fees

(400)

89,600

Less: Advance for 2007

(2,000)

10,000

 

 

 

 

Interest Accrued on Defence Bonds

7,000

Postage

300

Profit on Sale of Investment

(Rs 90,000 – Rs 80,000)

10,000

Electricity Charges

6,000

Profit on Sale of Furniture

(Rs 3,200 – Rs 3,000)

200

Help to Needy Students

22,000

Interest on Investments

2,000

Surplus (Balancing Figure)

63,500

 

 

 

1,08,800

 

1,08,800

 

 

 

 

Amount

Rs

60,000

Balance Sheet 

as on December 31, 2005

Liabilities

Amount

Rs

Assets

Capital fund (Balancing Figure)

2,01,000

Subscription Outstanding

5,000

 

 

Investment (Rs 80,000 + Rs 30,000)

1,10,000

 

 

Furniture

12,000

 

 

Cash in hand

14,000

 

 

Cash at bank

 

2,01,000

 

2,01,000

 

 

 

 

 

Balance Sheet 

as on December 31, 2006

Expenditure

Amount

 Rs

Income

Amount

 Rs

Advance Subscription 

3,000

Subscription Outstanding

 

7,000

Rent Outstanding

1,000

Defence Bonds

1,50,000

 

Capital Fund

2,01,000

 

Add: Accrued Interest on Defence Bonds

7,000

1,57,000

Add: Surplus

 

63,500

 

 

 

 

Add: Life Membership Fees

400

 2,64,900

Investment

30,000

 

 

Advance Salaries

2,000

 

 

Furniture

12,000

 

 

 

Add: Purchases

20,000

 

 

 

32,000

 

 

 

Less: Sales

(3,000)

29,000

 

 

Books

3,000

 

 

Cash in Hand

10,900

 

 

Cash at Bank

30,000

 

2,68,900

 

2,68,900

 

 

 

 

NOTE: As per the solution, Surplus is Rs 63,500; however, as per the book, the Surplus is Rs 59,900.

  • 6
What are you looking for?