The following is theaccount of cash transactions of the Nari Kalayan Samittee for theyear ended December 31, 2006:
| 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 Rs1,000) | 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 toprepare an Income and Expenditure Account after the followingadjustments:
| (a) | Subscription still to be received are Rs 750, but subscription include Rs 500 for the year 2007. |
| (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%. |
| Books of Nari Kalyan Samiti Income and Expenditure Account as on Dec. 31, 2006 | |||||
| Dr. | Cr. | ||||
| Expenditure | Amount Rs | Income | Amount Rs | ||
| Rent | 6,600 | Subscription | 32,500 | ||
| Electric Charges | 3,200 | Add: Outstanding for 2006 | 750 | ||
| Lecturer’s fee | 730 | 33,250 | |||
| Office Expenses | 1,480 | Less: Advance for 2007 | (500) | 32,750 | |
| Printing and Stationery | 1,050 | Donation | 2,500 | ||
| Legal Fee | 1,870 | Profit from Entertainment | 7,250 | ||
| Depreciation on: | Interest | 350 | |||
| Books | 750 | ||||
| Furniture | 580 | ||||
| Building | 1,000 | 2,330 | |||
| Expenses on Nukar Drama | 1,300 | ||||
| Loss on Sale of Books | 250 | ||||
| Surplus | 24,040 | ||||
| 42,850 | 42,850 | ||||
| Balance Sheet as on Dec. 31, 2005 | |||
| Liabilities | Amount Rs | Assets | Amount Rs |
| Capital Fund as Dec. 31, 2005 | 27,270 | Building | 20,000 |
| (Balancing Figure) | Furniture | 3,000 | |
| Books | 2,000 | ||
| Cash and Bank | 2,270 | ||
| 27,270 | 27,270 | ||
| Balance Sheet as on Dec. 31, 2006 | ||||||
| Liabilities | Amount Rs | Assets | Amount Rs | |||
| Capital Fund | 27,270 | Building | 20,000 | |||
| Add: Life Membership Fees | 3,250 | Less: 5% Depreciation | (1,000) | 19,000 | ||
| Add: Surplus | 24,040 | 54,560 | ||||
| Furniture | 3,000 | |||||
| Advance Subscription for 2007 | 500 | Add: Purchases | 8,600 | |||
| 11,600 | ||||||
| Less: 5% Depreciation | 580 | 11,020 | ||||
| Books | 2,000 | |||||
| Add: Purchases | 6,500 | |||||
| 8,500 | ||||||
| Less: Sales | 1,000 | |||||
| 7,500 | ||||||
| Less: 5% Depreciation | 750 | 6,750 | ||||
| Cash in Hand | 8,040 | |||||
| Cash at Bank | 9,500 | |||||
| Subscription Outstanding | 750 | |||||
| 55,060 | 55,060 | |||||
Note: As per thesolution, Surplus is Rs 24,040; however, the Surplus given in thebook is Rs 24,090.