shaalaa.com
S

Solution - Preparation of Income and Expenditure Account and Closing Balance Sheet

Account
User


Login
Register


      Forgot password?
Share
Notifications

View all notifications
Books Shortlist
Your shortlist is empty

Question

Marathi Vishwa Kosha Centre, Wai, has given you the following information from which, you are required to prepare. (i) Income and Expenditure Account for the year ending on 31.03.2013, (ii) Balance Sheet as on 31.03.2013.

                 Receipts and Payment Account for the year ending 31.03.2013 
Receipts
Amount
(Rs.)
Payments
Amount
(Rs.)
To Balance b/d
 
By Stationery
5000
Cash in hand
13000
By Furniture
[Purchased on 01.01.2013]
50000
To Locker Rent
5000
By Investments
1,00,000
To Entrance Fees
19000
By Expenses of Drama
33500
To Sale of old newspapers
1500
By Postage and telegram
2,500
To Receipts from Drama
78,500
By Magazines and Newspapers
4000
To Legacies
1,10,000
By Salaries
22,000
To Miscellaneous Receipts
8000
By Balance c/d
 
  
Cash in Hand
3000
  
Cash at bank
1,10,000
 
330000
 
330000
Additional Information:
(1) Capital fund on 01.04.2012, was Rs. 1,08,000.
(2) Legacies are to be capitalized.
(3) Outstanding salary Rs. 3,000.
(4) 50% of entrance fees is to be capitalized.
(5) Depreciation on Furniture @ 10% p.a.

Solution

You need to to view the solution
Is there an error in this question or solution?

Question appears in these question papers

Similar questions

Following is the Balance Sheet and Receipts and Payments Account of the Sevagiri Hospital, Satara.

Prepare Income and Expenditure account for the year ended on 31 st March, 2013 and Balancc Sheet as on that date :

                                         Balance Sheet as on 1st April, 2012

LiabilitiesAmount (Rs.)AssetsAmount (Rs.)
Capital fund1000000Cash in hand6000
Outstanding Salaries22000Cash at bank30000
Medical bill unpaid6000Land and building800000
  Furniture70000
  Equipments120000
  Outstanding Subscription2000
 1028000 1028000

 

                                                     Receipts and Payments Account

                                                      for the year ending 31.03.2013

Dr.                                                                                                                                                   Cr.

ReceiptsAmount (Rs.)PaymentsAmount (Rs.)

To Balance b/d

           Cash in hand

           Cash at bank

 

6000

30000

By Salaries

        (including of previous year)

110000

 

To Subscription

      (includes 2000 received for previous year)

130000

 

By Medicines48000

To Sale of old furniture

        (book value Rs. 30000)

20000

 

By Equipment purchased20000

To Donations

        (revenue)

44000

 

By Taxes3000
To Life membership fees25000By General expenses8600
  

By Balance c/d

          Cash in hand

          Cash at bank

 

15400

50000

 255000 255000

 

Consider the following adjustments :

  1. Outstanding subscription Rs. 15,000.
  2. Capitalise the amount of life membership fees.
  3. Pre-paid taxes Rs. 500.
  4. Outstanding salary Rs. 12,000.
  5. Write off depreciation Rs. 20,000 from land and building and Rs. 30,000 from equipments.
  6. Outstanding medicine bill as on 01.04.2012 is still due.
view solution
S