Question

Following is the Receipt and Payment account of Rohatgi Trust :

Receipt and Payment Account 
for the year ending December 31, 2017

Receipts		Amount (Rs)	Payments	Amount (Rs)
Cash in hand		14000	Rent	6,000
Cash at Bank		60000	Salary	12,000
Subscriptions:			Postage	300
2016	5000	91000	Electricity charges	6,000
2017	83000		Purchase of furniture	20000
2018	3000		Books	3,000
Sale of Investment		90,000	Defence Bonds	1,50,000
Interest on Investment		2000	Help to needy students	22,000
Sale of furniture (book value Rs 3,000)		3200	Cash in hand	10,900
			Cash at bank	30,000
		260200		260200

Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments: Subscription for 2017, still owing were Rs 7,000. Interest due on defence bonds was Rs7,000, Rent still owing was Rs 1,000. The Book value of investment sold was Rs 80,000, Rs 30,000 of the investment were still in hand. Subscription received in 2017 included Rs 400 from a life member. The total furniture on January 1, 2017 was worth Rs 12,000. Salary paid for the year 2018 is Rs 2,000.

Answer 1

Books of Rohatgi Trust 
Income and Expenditure Account 
as on December 31, 2017 

Expenditure		Amount (Rs)	Income		Amount (Rs)
Rent	6,000	7000	Subscription	83000	89,600
Add: Outstanding	1000		Add: Outstanding for 2017	7000
Salary	12000	10,000		90000
Less: Advance for 2018	(2000)		Less: Life Membership Fees	(400)
Postage		300	Interest Accrued on Defence Bonds		7000
Electricity Charges		6000	Profit on Sale of Investment  (Rs 90,000 – Rs 80,000)		10000
Help to Needy Students		22000	Profit on Sale of Furniture  (Rs 3,200 – Rs 3,000)		200
Surplus (Balancing Figure)		63,500	Interest on Investments		2000
		108800			108800

Balance Sheet 
as on December 31, 2016

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Capital fund (Balancing Figure)	201000	Subscription Outstanding	5000
		Investment (Rs 80,000 + Rs 30,000)	110000
		Furniture	12,000
		Cash in hand	14,000
		Cash at bank	60,000
	201000		201000

Balance Sheet 
as on December 31, 2017 

Expenditure		Amount (Rs)	Assets		amount (Rs)
Advance Subscription		3000	Subscription Outstanding		7000
Rent Outstanding		1000	Defence Bonds	150000	1,57,000
Capital Fund	2,01,000	264900	Add: Accrued Interest on Defence Bonds	7000
Add: Surplus	63,500		Investment		30,000
Add: Life Membership Fees	400		Advance Salaries		2000
			Furniture	12000	29000
			Add: Purchases	20,000
				32000
			Less: Sales	(3000)
			Books		3000
			Cash in Hand		10900
			Cash at Bank		30000
		268900			268900