Question

Following is the Receipt and Payment Account of Women's Welfare Club for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.					Cr.
Receipts		₹	Payments	₹
To Cash in Hand		22,500	Salary	1,25,000
To Cash at Bank		50,000	By Stationery	17,000
To Subscriptions		8,17,500	By Electric Charges	95,500
To Donations		30,000	By Insurance	75,000
To Government Grant		1,50,000	By Equipments	3,00,000
To Sale of Newspapers		3,000	By Petty Expenses	5,000
To Proceeds of Charity Show		1,65,000	By Expenses on Charity Show	1,29,000
To Interest on Investments @ 10% for full year		70,000	By Newspapers	10,000
To Sundries Income		4,000	By Lectures Fee	1,65,000
			By Honorarium to secretary	1,20,000
			By Cash in Hand	20,500
			By Cash at Bank	2,50,000
		13,12,000		13,12,000

Additional Information:

Particulars	1st April, 2018 (₹)	31st March, 2019 (₹)
Outstanding Salaries	12,000	18,000
Insurance Prepaid	7,000	3,000
Subscription Outstanding	37,500	25,000
Subscription received in advance	17,500	10,000
Electricity Charges outstanding	...	12,500
Stock of Stationery	22,500	7,000
Equipments	2,56,000	5,02,000
Building	12,00,000	11,40,000

Prepare Income and Expenditure Account for the year ended 31st March, 2019,and Balance Sheet as on that date.

Answer 1

Income and Expenditure Account for the year ending March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Stationery		32,500	Donation		30,000
Electricity Charges	95,500		Government Grant		1,50,000
Add: Outstanding	12,500	1,08,000	Sale of Old Newspapers		3,000
Salary	1,25,000		Proceeds of Charity Show (Net)		36,000
Add: Current O/s	18,000		Interest on Investments		70,000
Less: Previous O/s	12,000	1,31,000	Sundries Income		4,000
Insurance	75,000		Subscription	8,17,500
Add: Previous	7,000		Add: Current O/s	25,000
Less: Current	3,000	79,000	Add: Previous Adv.	17,500
Petty Expenses		5,000	Less: Previous O/s	37,500
Newspaper		10,000	Less: Current Adv.	10,000	8,12,500
Lectures Fees		1,65,000
Honorarium to Secretary		1,20,000
Depreciation on Equipment		54,000
Depreciation on Building		60,000
Surplus		3,41,000
		11,05,500			11,05,500

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital Fund			Prepaid Insurance		3,000
Opening Balance	22,66,000		Subscription Outstanding		25,000
Add: Surplus	3,41,000	26,07,000	Investments		7,00,000
Outstanding Salary		18,000	Equipment	2,56,000
Subscription Received in Advance		10,000	Add: Purchases	3,00,000
Electricity Charges Outstanding		12,500	Less: Depreciation	54,000	5,02,000
			Cash		20,500
			Bank		2,50,000
			Building	12,00,000
			Less: Depreciation	60,000	11,40,000
			Stock of Stationery		7,000
		26,47,500			26,47,500

Working Notes

WN1: Ascertainment of Capital Fund

Balance Sheet as on March 31, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Outstanding Salary	12,000	Prepaid Insurance	7,000
Subscription Received in Advance	17,500	Subscription Outstanding	37,500
Capital Fund	22,66,000	Stock of Stationery	22,500
		Equipment	2,56,000
		Building	12,00,000
		Cash	22,500
		Bank	50,000
		Investments	7,00,000
	22,95,500		22,95,500