Question

From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2017.

Receipt and Payment Account for the year ending 

as on December 31, 2017 

Receipts		Amount (Rs)	Payments	Amount (Rs)
Balance b/d			General Expenses	3,200
Cash in hand		4000	News paper	1850
Cash at Bank		15550	Electricity	3000
Subscriptions			Fixed deposit with bank (on 31.06.2017) @ 10% p.a.	18000
2016	1200	28200	Books	7000
2017	26500		Salary	3600
2018	500		Rent	6500
Sale of old newspapers		1250	Postage charges	300
Govt. grant		12000	Furniture (purchased)	10500
Sale of old furniture (book value Rs 5, 000)		3700	Balance c/d
Interest received on FD		450	Cash in Hand	3000
			Cash at Bank	8200
		65150		65150

Information:

1. Subscription outstanding as on 31.12. 2016 Rs 2,000 and on December 31, 2017 Rs 1,500.
2. On December 31, 2017 Salary outstanding Rs 600, and one month rent paid in advance.
3. On Jan. 01, 2016 organization owned Furniture Rs 12,000, Books Rs 5,000.

Answer 1

Dr.		Books of Adult Literacy Organisation  Income and Expenditure Account  as on Dec. 31, 2017			Cr.
Expenditure		Amount (Rs)	Income		Amount (Rs)
Loss on Sale of Old Furniture (5000 - 3700)		1300	Subscription	26500	28000
General Expenses		3200	Add: Outstanding for 2017	1500
Newspapers		1,850	Sale of Old Newspapers		1250
Electricity		3000	Government Grant		12000
Salary	3600	4200	Interest received on F.D.	450	900
Add: Outstanding for 2017	600		Add: Accrued Interest	450
Rent	6500	6000
Less: Prepaid for 2018 {6,500 × (1/13)}	(500)
Postages Charges		300
Surplus (Excess of Income over Expenditure)		22300
		42150			42150

 

Balance Sheet as on Dec. 31, 2016
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Capital Fund on Dec. 31, 2016 (Balancing Figure)	38550	Subscription Outstanding	2000
		Cash in Hand	4000
		Cash at Bank	15550
		Furniture	12000
		Books	5000
	38550		38550

 

Balance Sheet as on Dec. 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	38550	60850	Prepaid Rent		500
Add: Surplus	22300		Books	5000	12000
Salary Outstanding		600	Add: Purchases	7000
Subscription  Received in Advance for 2018		500	Furniture	12000	17500
			Add: Purchases	10500
				22500
			Less: Sale	(5000)
			Fixed Deposit	18000	18450
			Add: Accrued Interest	450
			Cash in Hand		3000
			Cash at Bank		8200
			Subscription
			Outstanding for 2017	1500	2300
			Add: Outstanding for 2016	800
		61950			61950