Following Receipts and Payments Account was prepared from the Cash Book of Delhi Charitable Trust for the year ending 31 st March- 2019-RECEIPTS AND PAYMENTS ACCOUNT0 for the year ending 31st March- 2019Prepare Income and Expenditure Account for the year ended 31st March- 2019- and Balance Sheet as on that date after the following adjustments-

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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.

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Solution

Income and Expenditure Account

for the year ending March 31, 2019

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, 2019

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

Salary Outstanding
9,000
Add: Accrued Interest
11,000

2,41,000

Adv. Exp. Outstanding 10,000

7,21,000

7,21,000

Working Notes

WN1: Ascertainment of Capital Fund

Balance Sheet

as on March 31, 2018

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 , 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.

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 Jaipur Sports Club, prepare Income and Expenditure Account for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended March 31st March, 2019
Dr.					Cr.
Receipts		₹	Payments	₹
To Balance b/d		2,00,000	By Rent	60,000
To Entrance Fees:			(including ₹15,000 for 2017 – 18)
2017 – 18	10,000		By Insurance Premium	60,000
2018 – 19	50,000	60,000	(including ₹15,000 for 2019 – 20)
To Subscriptions:			By Sports Equipments	50,000
2017 – 18	10,000		By Furniture	60,000
2018 – 19 (90%)	90,000		(Purchased on 31st March, 2019)
2019 – 20	5,000	1,05,000	By 8% Fixed Deposit	1,20,000
To Life Membership Fees		20,000	(Made on 1st October, 2018)
To Donations		1,20,000	By Tournament Expenses	10,000
To Donation for Tournament		50,000	By Books	20,000
To Subscription for Governor's Party		15,000	By Newspapers	1,000
To Interest on 8% Fixed Deposit		2,400	By Printing and Stationery	19,000
To Sale of Old Newspapers		300	By Balance c/d	1,80,000
To Sale of Old Sports Materials		500
(Book Value ₹ 1,200)
To Locker Rent		6,800
(including ₹ 600 for 2017 – 18)

		5,80,000		5,80,000

Q. From the following particulars relating to the Ramakrishna Mission Charitable Hospital, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date.

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Cash in Hand on 1st April, 2018	71,300	By Medicines	3,05,900
To Subscriptions	4,79,960	By Doctor's Honorarium	90,000
To Donations	1,45,000	By Salaries	2,75,000
To Interest on Investment @ @ 7% for full year	70,000	By Petty Expenses	4,610
To Proceeds from Charity Show	1,04,500	By Equipments	1,50,000
		By Expenses on Charity Show	7,500
		By Cash in Hand on 31st March, 2018	37,750

	8,70,760		8,70,760

Additional Information:	As at 1st April, 2018 (₹)	As at 31st March, 2019 (₹)
Subscriptions Due	2,400	2,800
Subscriptions Received in Advance	640	1,000
Stock of Medicines	88,100	97,400
Estimated value of Equipments	2,12,000	3,16,000
Building (cost less depreciation)	4,00,000	3,80,000

Q. Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Balance b/d (Cash)	18,000	By Building	4,00,000
To Donations for Building	4,50,000	By Project Expenses	90,000
To Donations	50,000	(Young Talent Search and Development)
To Government Grant	1,00,000	By Match Expenses	90,000
(Young Talent Search and Development)		By Furniture	1,21,000
To Life Membership Fees	40,000	By 10% Investments	1,60,000
To Match Fund	80,000	(Purchased on 1st July, 2018)
To Subscriptions	52,000	By Salaries	70,000
To Locker Rent	4,000	By Insurance	3,500
To Interest on Investments	10,000	By Sundry Expenses	4,700
To Sale of Furniture	1,00,000	By Closing c/d (Cash)	4,800
(Book value ₹ 80,000)		By Bank (Young Talent	10,000
To Entrance Fees	50,000	Search and Development


	9,54,000		9,54,000

Additional Information:
(i) During the year ended 31st March, 2019, the club had 550 members and each paying an annual subscription of ₹ 100.
(ii) Salaries Outstanding as at 1st April, 2018 were ₹ 10,000 and as at 31st March, 2019 were ₹ 5,000.
Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2019.

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Balance Sheet as on March 31, 2018
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, 2019
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, 2019
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
Salary Outstanding		9,000	Add: Accrued Interest	11,000	2,41,000
Adv. Exp. Outstanding		10,000
		7,21,000			7,21,000