Question

The following is the Receipts and Payments Account of Young Pensioner's Association. Leh for the year ended 31st March, 2020.

Dr.	Receipts and Payments Account for the year ending 31st March 2020					Cr.
Receipts		Amount ₹	Amount ₹	Payments	Amount ₹
To Balance b/d			7,000	By Stationery	8,000
To Subscriptions				By Postage	1,000
2018 - 19		5,000	90,000	By Picnic Exp	8,000
2019 - 20		83,000		By Salaries	8,000
2020 - 21		2,000		By Annual General meeting Expenses	4,500
To Entrance fees (Capital Receipt)			13,000	By Traveling Exp	7,500
To Donations			60,000	By Rent	12,000
To Legacies			40,000	By Charity	7,800
To Interest on Deposit			7,000	By Sundry Exp.	3,200
To Picnic Receipts			10,000	By Fixed Deposit	1,10,000
				By Furniture	50,000
				By Balance c/d	7,000
			2,27,000		2,27,000

Adjustments:

1. Outstanding subscription for current year ₹ 7,000.
2. Furniture was purchased on 1st Oct, 2019 and it is to be depreciated by 10 % p.a
3. Outstanding picnic receipts ₹ 7,500.
4. Stock of stationery on 1-4-2019 was ₹ 350 and on 31st March, 2020 was ₹ 1,700.
5. 50 % of legacies and full amount of donations are to be capitalised.

With the above information, you are required to prepare Income and Expenditure Account for the year ended 31st March 2020.

Answer 1

Dr.	In the Books of Young Pensioner’s Association, Leh. Income and Expenditure Account for the year ended 31st March, 2020						Cr.
Expenditure		Amount ₹	Amount ₹	Income	Amount ₹	Amount ₹
To Stationery used				By Subscriptions	83,000	90,000
Opening stock		350	6,650	Add: Outstanding	7,000
Add: Purchases		8,000		By Legacies	40,000	20,000
		8,350		Less: 50% Capitalised	20,000
Less: Closing stock		1,700		By Interest on Deposits		7,000
To Postage			1,000	By Picnic Receipts	10,000	17,500
To Picnic Exp.			8,000	Add: Outstanding	7,500
To Salaries			8,000
To Annual General meeting Expenses			4,500
To Traveling Exp.			7,500
To Rent			12,000
To Charity			7,800
To Sundry Exp.			3,200
To Depr. on Furniture			2,500
To Surplus (Excess of Income over Exp)			73,350
			1,34,500			1,34,500

Working Note:

Calculation of Depr. on Furniture 10 % Depr. on ₹ 50,000 for 6 months ₹ 2,500.

Hint:

Picnic Receipts + Outstanding Receipts are credited to Income and Expenditure A/c and Picnic Expenses are deducted from Picnic Receipts.

	₹
Picnic Receipts	10,000
Add: Outstanding	7,500
	17,500
Less: Picnic Expenses	8,000
	9,500