Question

(Simple Problem)
With the information given below, prepare Income and Expenditure Account and Balance sheet of Sudarshan charitable Organisation for the year ending on 31-03-2012.
Receipts and Payment Account for the year ending on 31-03-2012
Dr.                                                                                                          Cr.

Receipts	Amount (Rs.)	Amount (Rs.)	Payments	Amount Rs	Amount Rs
To Balance b/d		40,000	By Salaries		18,000
Cash in Hand	500		By Printing and stationery		20,000
Cash at Bank	39,500		By Charity Expenses		20,000
To Subscriptions (includes Rs 5,500 for 2009-10)		81,000	By Investments		60,000
Interest on Investments		1,800	By Office expenses		2,000
To Sale of Furniture (Book Value Rs 10,000)		8,000	By Balance c/d Cash in Hand	700
			Cash at Bank	10,100
		130,800			130,800

Additional Information:
1) There are Rs 800 members, paying annual subscription Rs 100 each.
2) Outstanding salary Rs 2,000.
3) The Assets on 01-04-2012 were as following:
Furniture Rs 40,000, Investment Rs 20,000, Land Rs 1,00,000
4) On 01-04-2012 Capital Fund was Rs 2,05,500

Answer 1

Sudarshan Charitable Organisation

Income and Expenditure Account

                               for the year ending March 31,2012
Dr.                                                                                                          Cr.

Expenditure	Amount (Rs)	Amount (Rs)	Income	Amount (Rs)	Amount (Rs)
Printing and Stationery		20,000	Subscription (800 × 100)		80,000
Charity Expenses		20,000	Interest on Investments		1,800
Office Expenses		2,000
Loss on Sale of Furniture		2,000
Salaries paid	18,000	20,000
Add: Salaries Outstanding	2,000
Surplus (Excess of Income over Expenditure)		17,800
		81,800			81,800

                                         

Balance Sheet

                                          as on March 31, 2012

Liabilities	Amount (Rs)	Amount (Rs)	Assets	Amount (Rs)	Amount (Rs)
Capital Fund			Furniture	40,000
Opening Balance	205,500	223,300	Less: Sale	10,000
Add: Surplus	17,800		Investment	20,000
Salaries Outstanding		2,000	Add: Further Investments	60,000
			Land		100,000
			Outstanding Subscription		4,500
			Cash in hand		700
			Cash in Bank		10,100
		225,300			225,300

Working Notes:

Total amount of subscription due for 2011-2012
=  No. of Members x  Annual Subscription 
=  800 x Rs. 100                                                                  = Rs. 8,000
Less: Amount actually received
(Rs 81,000-Rs 5,500 for 2009-10)                                       = Rs. 75,500

Subscription Outstanding at the end of the year               =  Rs. 4,500