Following Receipts and Payments Account was prepared from the Cash Book of Delhi Charitable Trust for the year ending 31st March , 2018:

RECEIPTS AND PAYMENTS ACCOUNT

Dr.

Cr.

Receipts

₹

Payments

₹

To Balance b/d:
By Charity 1,15,000

Cash in Hand 1,15,000 By Rent and Taxes 32,000

Cash at Bank 1,26,000 By Salary 60,000

To Donations 90,000 By Printing 6,000

To Subscriptions 4,28,000 By Postage 3,000

To Legacies 1,80,000 By Advertisements 45,000

To Interest on Investment 45,000 By Insurance 20,000

To Sale of old Newspaper 2,000 By Furniture 2,16,000

By Investment 2,30,000

By Balance c/d:

Cash in Hand 99,000

Cash at Bank 1,60,000

9,86,000

9,86,000

Prepare Income and Expenditure Account for the year ended 31st March , 2018 , and Balance Sheet as on that date after the following adjustments:
(i) Insurance premium was paid in advance for three months.
(ii) Interest on investment ₹ 11,000 accrued was not received.
(iii) Rent ₹6,000; Salary ₹9,000 and advertisement expenses ₹ 10,000 outstanding as on 31st March, 2018.

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Solution

Income and Expenditure Account

for the year ending March 31, 2018

Dr.

Cr.

Expenditure

Amount

(₹)

Income

Amount (₹)

Charity
1,15,000
Donation
90,000

Rent
32,000

Subscription
4,28,000

Add: Outstanding
6,000

38,000
Interest on Investments (45,000 + 11,000)
56,000

Salary
60,000

Sale of Old Newspapers
2,000

Add: Outstanding
9,000

69,000

Advertisement
45,000

Add: Outstanding
10,000

55,000

Insurance
20,000

Less: Prepaid
5,000

15,000

Printing
6,000

Postage
3,000

Surplus
2,75,000

5,76,000
5,76,000

Balance Sheet

as on March 31, 2018

Liabilities

Amount

(₹)

Assets

Amount (₹)

Capital Fund

Cash
99,000

Opening Balance
2,41,000

Bank
1,60,000

Add: Legacy
1,80,000

Prepaid Insurance
5,000

Add: Surplus
2,75,000

6,96,000
Furniture
2,16,000

Rent Outstanding
6,000
Investment
2,30,000

Add: Accrued Interest
11,000

2,41,000

7,21,000

7,21,000

Working Notes

WN1: Ascertainment of Capital Fund

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(₹)

Assets

Amount (₹)

Capital Fund
2,41,000
Cash
1,15,000

Banks
1,26,000

2,41,000

2,41,000

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Similar questions

Q. Following Receipts and Payments Account was prepared from the Cash Book of Delhi Charitable Trust for the year ending 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ending 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Balance b/d:		By Charity	1,15,000
Cash in Hand	1,15,000	By Rent and Taxes	32,000
Cash at Bank	1,26,000	By Salary	60,000
To Donations	90,000	By Printing	6,000
To Subscriptions	4,28,000	By Postage	3,000
To Legacies Donations	1,80,000	By Advertisements	45,000
To Interest on Investment	45,000	By Insurance	20,000
To Sale of old Newspaper	2,000	By Furniture	2,16,000
		By Investment	2,30,000
		By Balance c/d:
		Cash in Hand	99,000
		Cash at Bank	1,60,000

	9,86,000		9,86,000

Prepare Income and Expenditure Account for the year ended 31st March, 2019, and Balance Sheet as on that date after the following adjustments:
(i) Insurance premium was paid for insurance taken w.e.f. 1st July, 2018.
(ii) Interest on investment ₹ 11,000 accrued was not received.
(iii) Rent ₹ 6,000; Salary ₹ 9,000 and advertisement expenses ₹ 10,000 outstanding as on 31st March, 2019.
(iv) Legacy Donation is towards construction of Library Block.

Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017

Receipt and Payment Account for the year ending December 31, 2017
Receipts	Amount Rs	Payments	Amount Rs
Balance b/d		Charity	11,500
Cash in hand	11,500	Rent and taxes	3,200
Cash at bank	12,600	Salary	6,000
Donation	9,000	Printing	600
Subscription	42,800	Postage	300
Legacies	18,000	Advertisements	4,500
Interest on investment	4,500	Insurances	2,000
Sale of old newspapers	200	Furniture	21,600
		Investment	23,000
		Balance c/d:
		Cash in hand	9,900
		Cash at bank	16,000
	98,600		98,600

Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments:

(a)	It was decided to treat one-third of the amount received on account of donation as income.
(b)	Insurance premium was paid in advance for three months.
(c)	Interest on investment Rs1,100 accrued was not received.
(d)	Rent Rs600: salary Rs900 and advertisement expenses Rs1,000 outstanding as on December 31, 2017.

Q. From the following information and Receipts and Payments Account of Delhi Medical Society, prepare Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheet as at that date.

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018
Dr.				Cr.
Receipts	(₹)	Payments	(₹)
To Balance b/d	31,900	By Rent	16,800
To Entrance Fees	5,500	By Wages	24,500
To Subscriptions	1,80,000	By Lighting Charges	7,200
To Donations	16,500	By Books	24,800
To Life Membership Fees	25,000	By Medicines (Polio Eradication Project)	1,00,000
To Government Grant (Polio Eradication Project)	2,00,000	By Salaries to Doctors(Polio Eradication Project)	80,000
To Proceeds of Seminar	23,200	By Office Expenses	45,000
To Interest on Deposits	2,400	By 8% Fixed Deposits	1,20,000
		(On 1st October, 2017)
		By Seminar Expenses	20,200
		By Cash in Hand	26,000
		By Bank A/c (Polio Eradication Project)	20,000


	4,84,500		4,84,500

Other information:
On 31st March, 2017, the club possessed books of ₹ 2,00,000 and Furniture of ₹ 85,000. Provide depreciation on these assets @ 10% including the purchases during the year.
Subscriptions in arrears in the beginning of the year amounted to ₹ 3,500 and at the end of the year ₹ 5,500 were outstanding.
The Club paid three months' rent in advance both in the beginning and at the end of the year.

Q. From the following Receipts and Payments Account of Mumbai Theatre Club, prepare Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheet as at that date.

RECEIPTS AND PAYMENTS ACCOUNT
Dr.				Cr.
Receipts	₹	Payments	₹
To Cash in Hand	40,000	By Salary	20,000
To Cash at Bank	1,00,000	By Repair Expenses	5,000
To Donations	50,000	By Furniture	60,000
To Subscriptions	1,20,000	By Miscellaneous Expenses	5,000
To Entrance Fees	10,000	By Investments	60,000
To Interest on Investments	1,000	By Insurance Premium	2,000
To Interest Received from Bank	4,000	By Billiard Table	80,000
To Sale of Old Newspapers	1,500	By Paper, Ink, etc	1,500
To Sale of Drama Tickets	10,500	By Drama Expenses	5,000
		By Cash in Hand (closing)	26,500
		By Cash at Bank (closing)	72,000



	3,37,000		3,37,000

Additional information :
(i) Subscriptions in arrear for the year ended 31st March, 2018 ₹ 9,000 and subscriptions in advance for the year ended 31st March , 2019 ₹ 3,500.
(ii) Insurance Premium outstanding ₹ 400.
(iii) Miscellaneous expenses prepaid ₹ 900.
(iv) 8% interest has accured oninvestment for five months.
(v) Billiard Table costing ₹ 3,00,000 was purchased during last year and ₹ 2,20,000 were paid for it.

Q. From the following Receipts and Payments Account of Mumbai Theatre Club, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT
Dr.			Cr.
Receipts	(₹)	Payments	(₹)
To Balance b/d:		By Salary	20,000
Cash and Bank	1,40,000	By Repair Expenses	5,000
To Donations	50,000	By Furniture	60,000
To Subscriptions	1,20,000	By Miscellaneous Expenses	5,000
To Entrance Fees	10,000	By Investments	60,000
To Interest on Investments	1,000	By Insurance Premium	2,000
To Interest Received from Bank	4,000	By Billiard Table	80,000
To Sale of Old Newspapers	1,500	By Paper, lnk, etc.	1,500
To Sale of Drama Tickets	10,500	By Drama Expenses	5,000
		By Balance c/d:
		Cash and Bank	98,500
	3,37,000		3,37,000

Additional Information:
(i) Subscriptions in arrear for the year ended 31st March, 2019 ₹ 9,000 and subscriptions in advance for the year ending 31st March, 2020 ₹ 3,500.
(ii) Insurance Premium outstanding ₹ 400.
(iii) Miscellaneous expenses prepaid ₹ 900.
(iv) 8% interest has accrued on investment for five months.
(v) Billiard Table costing ₹ 3,00,000 was purchased during last year and ₹ 2,20,000 were paid for it.

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Balance Sheet as on March 31, 2017
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund	2,41,000	Cash	1,15,000
		Banks	1,26,000
	2,41,000		2,41,000

Income and Expenditure Account for the year ending March 31, 2018
Dr.				Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
Charity		1,15,000	Donation	90,000
Rent	32,000		Subscription	4,28,000
Add: Outstanding	6,000	38,000	Interest on Investments (45,000 + 11,000)	56,000
Salary	60,000		Sale of Old Newspapers	2,000
Add: Outstanding	9,000	69,000
Advertisement	45,000
Add: Outstanding	10,000	55,000
Insurance	20,000
Less: Prepaid	5,000	15,000
Printing		6,000
Postage		3,000
Surplus		2,75,000
		5,76,000		5,76,000

Balance Sheet as on March 31, 2018
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital Fund			Cash		99,000
Opening Balance	2,41,000		Bank		1,60,000
Add: Legacy	1,80,000		Prepaid Insurance		5,000
Add: Surplus	2,75,000	6,96,000	Furniture		2,16,000
Rent Outstanding		6,000	Investment	2,30,000
			Add: Accrued Interest	11,000	2,41,000
		7,21,000			7,21,000