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Following is the Receipt and Payment Account of Women’S Welfare Club for the Year Ended December 31, 2017: - Accountancy

Ledger

Following is the Receipt and Payment Account of Women’s Welfare Club for the year ended December 31, 2017:

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

Receipts Amount (Rs) Payments Amount (Rs)
Balance b/d 7250 Salary 12500
Subscriptions 81750 Stationery 1700
Donations 3000 Electricity charges 9550
Grant from Government 15000 Insurance 7500
Sale of newspapers 300 Equipments 30000
Proceeds of charity show 16500 Petty expenses 500
Interest on investments @10% for full year  7000 Expenses on charity show 12900
Sundries income 400 Newspapers 1000
    Lectures fee 16500
 

Honorarium to Secretary

12000
 

Balance c/d

27050
  131200   131200

Additional Information: 

  01.01.2017
(Rs)
31.12.2017
(Rs)
Outstanding salaries 1200 1800
Insurance prepaid 700 300
Subscription outstanding 3750 2500
Subscription received in advanced 1750 1000
Electricity charges outstanding - 1250
Stock of stationery 2250 700
Equipments 25600 50200
Building 120000 114000

Prepare Income and Expenditure Account for the year ended December 31, 2017 and Balance Sheet as on that date.

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Solution

Books of Women Welfare Club
Income and Expenditure Account
as on December 31, 2017 

Dr.                                                                                  Cr.

Expenditure Amount (Rs) Income Amount (Rs)
Salary 12500 13100 Subscriptions 81750  
Add : O/s on Dec.31 , 2017 1800 Add: O/s on Dec. 31, 2017 2,500  
  14300   84250  
Less: O/s on Dec. 31, 2016 (1200) Less: O/s on Dec. 31, 2016 (3750)  
Stationery 1700 3250   80500  
Add: Opening Stock 2250 Add: Advance on Dec. 31, 2016 1750  
  3950   82250  
Less: Closing Stock (700) Less: Advance on Dec.31, 2017 (1000) 81250
Electric Charges 9550 10800 Donations 3000
Add: O/s on Dec. 31, 2017 1250 Grant from Government 15000
Insurance 7500 7900 Sale of Newspapers 300
Add: Prepaid in 2016 700 Profit from Charity show (16,500–12,900) 3600
  8200 Interest on Investments 7000
Less: Prepaid in 2017 (300) Sundries Income 400
Depreciation on Equipments 5400    
Petty Expenses 500  
Newspapers 1000  
Lectures Fee 16500  
Honorarium to Secretary 12000  

Depreciation on Building

6000  
Surplus (Balancing Figure) 34100  
  110550   110550

Balance Sheet 
as on December 31, 2016

Liabilities

Amount

Rs

Assets

Amount

Rs

Outstanding Salaries

1,200

Insurance Prepaid

700

Subscription in Advance

1,750

Subscription Outstanding

3,750

Capital Fund (Balancing Figure)

2,26,600

Stock of Stationery

2,250

 

 

 

 

 

Equipments

25,600

 

Building

1,20,000

 

Cash and Bank

7,250

 

Investments {7,000 × (100/10)}

70,000

 

2,29,550

 

2,29,550

 

Balance Sheet 
as on December 31, 2017

Liabilities Amount (Rs) Assets Amount (Rs)
Outstanding Salaries 1800 Equipments 25,600 50200
Subscription in Advance 1000

Add: Purchases

30,000
Electricity Charges Outstanding 1250   55,600
Capital Fund 2,26,600 2,60,700 Less: Depreciation (5,400)
Add: Surplus 34,100 Insurance Prepaid 300
    Subscription Outstanding 2500
  Stock of Stationery 700
  Building

1,20,000

114000
  Less: Depreciation (6,000)
  Cash and Bank 27050
  Investments 70,000
  264750   264750
Concept: Preparation of Receipts and Payments Account
  Is there an error in this question or solution?
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APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 1 Accounting for Not-for-Profit Organisation
Numerical Questions | Q 18 | Page 61
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