Advertisement Remove all ads

The Following is the Account of Cash Transactions of the Nari Kalayan Samittee for the Year Ended December 31, 2017: - Accountancy

Ledger

The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017:

Receipts Amount (Rs) Payments Amount (Rs)
Balance from last year 2270 Rent  6600
Subscriptions 32500 Electric charges 3,200
Life membership fee 3250 Lecturer’s fee 730
Donation 2500 Office expenses 1,480
Profit from entertainment 7250 Printing and Stationery 1,050
Sale of old Books (books value Rs 1,000) 750 Legal fee 1,870
Interest 350 Books 6,500
   

Furniture purchased

8,600
    Expenses on nukar drama 1,300
    Cash in hand 8040
    Cash at bank 9500
  48870   48870

You are required to prepare an Income and Expenditure Account after the following adjustments:

(a) Subscription still to be received are Rs 750, but subscription include Rs 500 for the year 2018.

(b)  In the beginning of the year the Sangh owned building Rs 20,000 and furniture Rs 3,000 and Books Rs 2,000.

(c) Provide depreciation on furniture @ 5% (including purchase), books @ 10% and building @ 5%.

Advertisement Remove all ads

Solution

Books of  Nari Kalyan Samittee 
Income and Expenditure Account
as on Dec. 31, 2017 

Dr.                                                                               Cr.

Expenditure Amount (Rs) Income Amount (Rs)
Rent 6,600 Subscription 32,500 32,750
Electric Charges 3,200 Add: Outstanding for 2017  750
Lecturer’s fee 730   33,250
Office Expenses 1,480 Less: Advance for 2018  (500)
Printing and Stationery 1,050 Donation 2500
Legal Fee

1,870

Profit from Entertainment 7250
Depreciation on:   Interest 350
Books 750 2330    
Furniture

580

 
Building 1,000  
Expenses on Nukar Drama 1300  
Loss on Sale of Books 250  
Surplus

24,040

 
  42850   42850

Balance Sheet  
as on Dec. 31, 2016

Liabilities Amount (Rs) Assets Amount (Rs)
Capital Fund as Dec. 31, 2016
(Balancing Figure) 
27270 Building 20,000
    Furniture 3000
    Books 2000
    Cash and Bank 2270
  27270   27270

Balance Sheet  
as on Dec. 31, 2017 

Liabilities Amount (Rs) Assets Amount (Rs)
Capital Fund 27,270 54,560 Building 20,000 19,000
Add: Life Membership Fees  3,250 Less: 5% Depreciation  (1,000)
Add: Surplus 24,040 Furniture 3,000 11,020
Advance Subscription for 2018 500 Add: Purchases 8,600
      11,600
  Less: 5% Depreciation 580
  Books 2,000 6,750
  Add: Purchases 6,500
     8,500
  Less: Sales 1,000
    7,500
  Less: 10% Depreciation 

750

  Cash in Hand 8,040
  Cash at Bank 9,500
  Subscription Outstanding 750
  55060   55060
Concept: Preparation of Income and Expenditure Account
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 1 Accounting for Not-for-Profit Organisation
Numerical Questions | Q 7 | Page 54
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×