Question

“Bhartiya Kala Kendra”, Solapur gives you the following information, for the year ended on 31.03.2018 Prepare Income and Expenditure Account for the year ending 31.03.2018

Dr	Receipts and payments Account for the year ending 31.03.2018.				Cr
Receipts	Amount ₹	Payments	Amount ₹
To Balance b/d		By Stationery	600
Cash in Hand	200	By Furniture Purchased	7,000
Cash at Bank	12,500	By Investments in govt securities	14,000
To Locker Rent	400	By Expenses of Drama	3,000
To Entrance fees	2,900	By Postage	450
To Sale of old newspapers	250	By Magazine and newspaper	600
To Receipts from Drama	9,000	By Salaries	4,400
To Legacies	12,000	By Balance c/d
To Interest of Govt. Securities	400	Cash in Hand	700
To Miscellaneous Receipts	400	Cash at Bank	7,300
	38050		38050

Additional Information :

1) Legacies are to be capitalized

2) Outstanding Salary ₹ 200

3) 50 % of Entrance Fees are to be Capitalised

Answer 1

Dr	In the books of Bhartiya Kala Kendra, Solapur Income and Expenditure Account for the year ended 31st March 2018						Cr
Expenditure		Amount (₹)	Amount (₹)	Income	Amount (₹)	Amount (₹)
To Stationery			600	By Locker rent		400
To Expenses of Drama			3,000	By Entrance Fees	2,900
To Postage			450	Less: 50 % Capitalised	1,450	1,450
To Magazine and Newspaper			600	By Sale of Old Newspapers		250
To Salaries		4,400		By receipts from Drama		9,000
Add: Outstanding Salaries		200	4,600	By Interest on Govt. Securities		400
To Surplus (Excess of income over expenditure)			2,650	By Miscellaneous receipts		400
			11900			11900