The Receipt and Payment Account of Harimohan charitable institution is given:

Receipt and Payment Account for the year ending March 31, 2007

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, 2007 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.

 

Books of Harimohan Charitable Institution

Income and Expenditure Account

Dr.

 

Cr.

Expenditure

Amount

Rs

Income

Amount

Rs

Rent and Taxes

4,000

 

Donations

16,000

Add: Outstanding

800

4,800

Legacies

12,000

 

 

Subscriptions

50,200

Salaries

10,400

 

Interest on Investment

3,800

 

 Add: Outstanding

1,200

11,600

Add: Accrued Interest

2,000

5,800

 

 

 

 

Advertisement

1,100

 

Interest on Deposits

800

Add: Outstanding

200

1,300

Sale of Old Newspapers

500

 

 

 

 

Charities

60,000

 

 

Printing

1,000

 

 

Postage

300

 

 

Insurance

4,800

 

 

 

 

 

 

Surplus (Excess of Income over Expenditure)

1,500

 

 

 

 

 

 

 

85,300

 

85,300

 

 

 

 

             

NOTE: As per the solution, Excess of Income over Expenditure is Rs 1,500; however, as per the book, it is Rs 2,500.

  • 6
What are you looking for?