Maharashtra State BoardHSC Arts 12th Board Exam
Advertisement Remove all ads

Given below is Receipts and Payments Account of “Vithai Mahila Mandal” Pandharpur for the year ending 31.03.2018. Prepare an Income and Expenditure Account for the year ended 31.03.2018 - Book Keeping and Accountancy

Advertisement Remove all ads
Advertisement Remove all ads
Ledger

Given below is the Receipts and Payments Account of “Vithai Mahila Mandal” Pandharpur for the year ending 31.03.2018. Prepare an Income and Expenditure Account for the year ended 31.03.2018 and Balance Sheet as on that date.

Dr Receipts and Payments Account for the year ending 31.03.2018. Cr
Receipts Amount
Amount
Payments Amount
Amount
To Balance b/d     By Stationery   6000
Cash in Hand 3,000   By Repairs to Furniture   950
Cash at Bank 20,000 23,000 By Rent   8,300
To Entrance Fees   3,500 By Salaries   15,000
To Subscription   19,000 By Miscellaneous Expenses   450
To Miscellaneous Receipts   850 By Balance c/d    
      Cash in Hand 1,650  
      Cash at Bank 14,000 15,650
    46,350     46,350

Adjustments :

1) Capital Fund on 01.04.2017 was ₹ 90,000

2) Outstanding Subscription ₹ 4,000

3) Entrance Fees are to be capitalized

4) Rent paid includes ₹ 800 paid for April 2018

5) They have the following Assets and Liabilities 01.04.2017

Furniture ₹ 9,000,

Building ₹ 70,000, 

Outstanding Expenses ₹ 12,000

Advertisement Remove all ads

Solution

Dr

In the books of Vithai Mahila Mandal, Pandharpur
Income and Expenditure Account for the year ended 31st March 2018

Cr
Expenditure Amount
Amount
Income Amount
Amount
To Stationery   6,000 By Subscription 19,000  
To Repairs to Furniture   950 Add: Outstanding Subscription 4,000 23,000
To Rent 8,300   By Miscellaneous receipts   850
Less: Prepaid Rent 800 7,500 By Deficit (Excess of expenses over incomes)   6,050
To Salaries   15,000      
To Miscellaneous Expense   450      
    29,900     29,900

 

Balance Sheet as on 31st March 2018
Liabilities Amount
Amount
Assets Amount
Amount
Capital Fund 90,000   Furniture   9,000
Add: Entrance Fees (Capitalised) 3,500   Building   70,000
Less: Deficit 6,050 87,450 Outstanding Subscription   4,000
Outstanding Expenses   12,000 Cash in Hand   1,650
      Cash at Bank   14,000
      Prepaid rent   800
    99,450     99,450

Working Notes :

(1) Outstanding subscription of ₹ 4,000 is first added to subscription received on the credit side of Income and Expenditure A/c and then it is shown on the Assets side of the Balance Sheet.

(2) The entire amount of the entrance fees ₹ 3,500 is added to the capital fund.

(3) Prepaid ₹ 800 is first deducted from rent paid on the debit side of Income & Expenditure A/c and then shown on the Assets side of the Balance Sheet.

(4) Outstanding expenses ₹ 12,000 is directly shown on the Liabilities side of the Balance Sheet.

Concept: Income and Expenditure Account
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Balbharati Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board
Chapter 2 Accounts of ‘Not for Profit’ Concerns
Exercise 2.2 (Practical Problems) | Q 9. | Page 119
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×