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.