Question

(Newly started Associations)
Following is the Receipts and Payments Account of Bavdhan Pensioners Association newly started on 01.04.2010.

Dr.	Receipts and Payment Account for the year ending on 31-03-2011				Cr.
Receipts	Amount (Rs.)	Amount (Rs.)	Payments	Amount (Rs.)	Amount (Rs.)
To Subscriptions received		93,900	By rent		6,000
For 2010-2011	85,000		By Travelling Expenses		2,800
For 2011-2012	6,900		By Expenses for get-together Function		3,300
For 2012-2013	2,000		By Charity		1,000
To Entrance Fees		11,000	By Salaries		4,500
To Donations		25,000	By Furniture		30,500
			By Fixed Deposit		50,000
			By Balance c/d		31,800
		129,900			129,900

Adjustments:

1. Outstanding Subscription for current year Rs 10,000.
2. Entrance Fees are to be capitalized.
3. ‘Capital Fund’ should be created out of Entrance Fees and Surplus of the current year’.
4. Depreciate Furniture by Rs 2,500.

You are required to prepare Income and Expenditure Account for the year ending on 31-03-2011 and Balance Sheet as on that date.

Answer 1

 

                                                                                                          

Bavdhan Pensioners Association
Dr.	Income and Expenditure Account for the year ending March 31, 2011				Cr.
Expenditure	Amount (Rs)	Amount (Rs)	Income	Amount (Rs)	Amount (Rs)
Printing and Stationery		-	Subscription	85,000	95,000
Rent Paid		6,000	Add: Outstanding at the end	10,000
Expenses for Get-Together Function		3,300	General Donation		25000
Travelling Expenses		2,800
Charity		1,000
Depreciation on Furniture		2,500
Salaries paid		4,500
Surplus (Excess of Income over Expenditure)		99,900
		120,000			120,000

Balance Sheet as on March 31, 2011
Liabilities	Amount (Rs)	Amount (Rs)	Assets	Amount (Rs)	Amount (Rs)
Capital Fund			Furniture	30,500	28,000
Entrance Fees	11,000	110,900	Less: Depreciation	2,500
Add: Surplus	99,900		Fixed Assets		50,000
Subscription received in advance		8,900	Outstanding Subscription		10,000
			Cash in hand		31,800
		119,800			119,800