Solve this:

​Q8. Following is the Receipt and Payment Account of Literacy Club for the year ended 31-3. 2006.
            
Receipt  Amount (Rs.)  Payment   Amount (Rs.)
 Balance b/d
Subscription :
2004-05           1,200
2005-06         26,500
2006-07              500
Sale of old newspaper
Government Grants
Sale of old furniture
(Book value Rs. 7,000)
Interest on fixed deposits
19,550



28,200
  1,250
10,000

  5,700
     450
Salary 
Newspaper
Electricity Bill

Fixed Deposit
(on 1.7.05 @ 9% p.a)
Books
Rent 
Furniture
Balance c/d
  3,000
  2,000
  1,000


20,000
10,000
  6,800
10,500
11,200
  65,150   65,150

        Additional information :

      1. Subscription outstanding as on 31-3-2005 were Rs. 2,000 and on 31-3-2006 Rs. 2,500

      2. On 31-3-2006 salary outstanding was Rs. 600 and rent outstanding was Rs. 1,200

      3. The club owned furniture Rs. 15,000 and books Rs. 7,000 on 1-4-2005.

    prepare Income and Expenditure Account of the club for the year ended 31-3-2006 and ascertain 'Capital Fund' on 31-3-2005. Also prepare a Balance sheet as at 31st March, 2006.
 Solve this:

Dear Student,
Note: There is a difference of Rs 650 in Receipts & Payments A/c, so, our Balance Sheet also shows a difference Of Rs 650.

 
Income and Expenditure Account
for the year ending …
Dr.   Cr.
Expenditure Amount
(Rs)
Income Amount (Rs)
Salary (3,000+600) 3,600 Subscription (26,500+2,500)   29,000
Newspaper 2,000 Interest on F.D(450+900) 1,350
Rent (6,800+1,200) 8,000 Grants 10,000
Loss on sale of furniture 1,300 Sale of newspaper 1,350
Electricity bill 1,000    
Surplus (Excess of Income over Expenditure) 25,700    
       
       
       
  41,600   41,600
       
         
 
Balance Sheet
as on 31.03.2006
Liabilities Amount
(Rs)
Assets Amount (Rs)
Capital Fund   Furniture 18,500
Opening Balance 43,550   (10,500+15,000-7,000)    
Add: Donation 25,700 69,250    
      Books (7,000+10,000) 17,000
Subscription Received in Advance 500 Subscription Outstanding 3,300
Rent Outstanding 1,200 (800+2,500)  
Salaries Outstanding 600    
    Fixed Deposits 20,000
    Outstanding interest on F.D. 900
    Cash 11,200
       
  71,550   70,900
       
           
Calculation of Capital Fund
 
Balance Sheet
as on 31.03.2005
Liabilities Amount
(Rs)
Assets Amount (Rs)
Capital Fund (Balancing Figure) 43,550 Furniture 15,000
    Library Books 7,000
    Subscription Outstanding 2,000
    Cash 19,550
       
       
  43,550   43,550
       


Regards

  • -21
What are you looking for?