Question

Following is the balance sheet as on 1.4.2012 and receipts and payments accounts of mahakavi kalidas Library , Nashik . Balance sheet as on 31st March 2013.

Balnce sheet as on 01.04.2012

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital fund	690000	Furniture	72500
Expenses due	7000	Books	551000
		Investment in securities	50000
		Cash in hand	8500
		Cash in Bank	15000
	697000		697000

Receipts and Payments for the year ending 31st March ,2013

Dr.                                                                                              Cr.

Receipts	Amount (₹)	Payments	Amount (₹)
To Balance b/d		By electricity charges	6980
Cash in hand	8500	By postage and telegram	6100
Cash in bank	15000	By Purchase of books	80000
To member's subscriptions	180000	By Payment of expenses due	7000
To Entrance fees	25000	By Sundry expenses	10500
To Sales of old newspapers	1500	By Investment in securities	100000
To Hire of lecture hall	18000	By Furniture	28000
To Interest on securities	4000	By Balance c/d
		Cash in hand	6420
		Cash in bank	7000
	252000		252000

Adjustments:

(1) During the current year , furniture was purchased on 1.10.2012. Depreciation furniture @ 10 % p.a.

(2) Depreciate books by ₹ 100000

(3) Membership subscription received during the year includes ₹ 15000 , for the year 2013 - 14 and ₹ 7500 , are outstanding for current year.

(4) Capitalised half (1/2) of the entrance fees.

Prepare : Income and Expenditure account for the year ended 31st March 2013 and Balance sheet as on 31st march , 2013.

Answer 1

In the books of Mahakavi Kalidas Library, Nashik

Income and Expenditure Account for the year ended 31.3.2013

Expenditure	Amount	Amount	Payments	Amount	Amount
To Electricity Charges		6980	By Members Subscription	180000	172500
To Postage and Telegram		6100	Add: Outstanding Subscription	7500
To Sundry Expenses		10500	Less: Pre - received Subscription	15000
To Depreciation:			By Entrance Fees	25000	12500
Furniture	8650	108650	Less: Capitalised	12500
Books	100000		By Sale of Old Newspapers		1500
			By Hire of lecture hall		18000
To Income Over Expenditure [Surplus]		76270	By Interest on securities		4000
		208500			208500

 

Balance Sheet of Mahakavi Kalidas Library as on 31.3.2013

 

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital Fund	690000		Furniture	72500	91850
Add: Entrance Fees	12500		Add: Purchased	28000
Add: Surplus	76270	778770		100500
Pre - received Subscription		15000	Less: Depreciation	8650
			Books	551000	531000
			Add: Purchased	80000
				631000
			Less: Depreciation	100000
			Investment in securities	50000	150000
			Add: Purchased	100000
			Cash inHand		6420
			Cash at Bank		7000
			Outstanding Subscription		7500
		793770			793770