Question

The Receipt and Payment Account of Harimohan charitable institution is given:

Receipt and Payment Account for the year ending March 31, 2015

Receipts	Amount (Rs)	Payments	Amount (Rs)
Balance b/d:		Furniture	3000
Cash at Bank	22000	Investments	55000
Cash in Hand	8800	Advance for building	20,000
Donations	16000	Charities	60000
Subscriptions	50200	Salaries	10400
Endowment Fund	60000	Rent and Taxes	4000
Legacies	12000	Printing	1000
Interest on Investment	3800	Postage	300
Interest on Deposits	800	Advertisements	1100
Sale of old newspapers	500	Insurance	4800
Donation for building	16000	Balance c/d:
Legacy for building	12000	Cash at Bank	32000
		Cash in Hand	10500
	202100		202100

Prepare the Income and Expenditure Account for the Year ended on March 31, 2015 after considering the following: 

1. Liabilities to be provided for are: 
   Rent Rs 800; Salaries Rs 1,200; advertisement Rs 200.
2. Rs 2,000 due for interest on investment was not actually received.

Answer 1

Dr.		Books of Harimohan Charitable Institution  Income and Expenditure Account			Cr.
Expenditure		Amount (Rs)	Income		Amount (Rs)
Rent and Taxes	4000	4800	Donations		16000
Add: Outstanding	800		Legacies		12000
Salaries	10400	11600	Subscriptions		50,200
Add: Outstanding	1200		Interest on Investment	3800	5800
Advertisement	1100	1300	Add: Accrued Interest	2000
Add: Outstanding	200		Interest on Deposits		800
Charities		60000	Sale of Old Newspapers		500
Printing		1000
Postage		300
Insurance		4800
Surplus (Excess of Income over Expenditure)		1500
		85300			85300