Question

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.

Answer 1

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