Question

From the following Receipts and Payment account of Yercaud Youth Association, prepare Income and expenditure account for the year ended 31^st March, 2019 and the balance sheet as on that date.

Receipts	₹	Payments	₹
To Balance b/d		By Salary	14,000
Cash in hand	9,600	By Office expenses	7,200
To Government grants for purchase of books	10,000	By Books purchased	15,000
To Subscription	24,800	By Stationery purchased	1,800
To Admission fees	2,000	By Newspaper purchased	2,100
To Prize fund receipts	6,000	By Prizes awarded	5,000
To Bank interest	1,500	By Balance c/d
To Sale of newspapers	1,100	Cash in hand	9,900
	55,000		55,000

Additional information:

1. Opening capital fund ₹ 20,000.
2. Stock of books on 1.4.2018 ₹ 9,200.
3. Subscription due but not received ₹ 1,700.
4. Stock of stationery on 1.4.2018 ₹ 1,200 and stock of stationery on 31.3.2019, ₹ 2,000.

Answer 1

Dr.	Income and Expenditure Account for the year ended 31.03.19				Cr.
Expenses	₹	₹	Income	₹	₹
To Salary		14,000	By Subscription	24,800
To Office expenses		7,200	(+) Outstanding	1,700	26,500
To Stationery purchased	1,800		By Admission fees		2,000
(+) Opening stock	1,200		By Prize fund receipts		6,000
	3,000		By Bank interest		1,500
(−) Closing stock	2,000	1,000	By Sale of newspapers		1,100
To Newspaper purchased		2,100
To Prizes awarded		5,000
To Income Excess Over Expenditure (Surplus)		7,800
		37,100			37,100

Balance Sheet as on 31.03.2019

Liabilities	₹	₹	Assets	₹	₹
Capital Fund	20,000		Opening stock of books	9,200
(+) Surplus	7,800	27,800	(+) Purchases	15,000	24,200
Govt. grants for purchase of books		10,000	Closing Cash		9,900
			O/s Subscription		1,700
			Cl. stock Stationery		2,000
		37,800			37,800