From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2017.
Receipt and Payment Account for the year ending as on December 31, 2017 |
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Receipts |
Amount Rs |
Payments |
Amount Rs |
|
Balance b/d |
|
|
General Expenses |
3,200 |
Cash in hand |
|
4,000 |
News paper |
1,850 |
Cash at Bank |
|
15,550 |
Electricity |
3,000 |
Subscriptions |
|
|
Fixed deposit with bank (on 31.06.2017) @ 10% p.a. |
18,000 |
2016 |
1,200 |
|
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2017 |
26,500 |
|
Books |
7,000 |
2018 |
500 |
28,200 |
Salary |
3,600 |
Sale of old newspapers |
|
1,250 |
Rent |
6,500 |
Govt. grant |
|
12,000 |
Postage charges |
300 |
Sale of old furniture (book value Rs 5, 000) |
|
3,700 |
Furniture (purchased) |
10,500 |
Interest received on FD |
|
450 |
Balance c/d |
|
|
|
|
Cash in Hand |
3,000 |
|
|
|
Cash at Bank |
8,200 |
|
|
65,150 |
|
65,150 |
|
|
|
|
|
Information:
(i) Subscription outstanding as on 31.12.2016 Rs 2,000 and on December 31, 2017 Rs 1,500.
(ii) On December 31, 2017 Salary outstanding Rs 600, and one month Rent paid in advance.
(iii) On Jan. 01, 2016 organisation owned Furniture Rs 12,000, Books Rs 5,000.
Books of Adult Literacy Organisation Income and Expenditure Account as on Dec. 31, 2017 |
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Dr. |
Cr. |
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Expenditure |
Amount Rs |
Income |
Amount Rs |
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Loss on Sale of Old Furniture |
1,300 |
Subscription |
26,500 |
|
||
General Expenses |
3,200 |
Add: Outstanding for 2017 |
1,500 |
28,000 |
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Newspapers |
1,850 |
|
|
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Electricity |
|
3,000 |
Sale of Old Newspapers |
1,250 |
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Salary |
3,600 |
|
Government Grant |
12,000 |
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Add: Outstanding for 2017 |
600 |
4,200 |
Interest received on F.D. |
450 |
|
|
|
|
|
Add: Accrued Interest |
450 |
900 |
|
Rent |
6,500 |
|
|
|
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Less: Prepaid for 2018 {6,500×(1/13)} |
(500) |
6,000 |
|
|
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Postages Charges |
|
300 |
|
|
||
Surplus (Excess of Income over Expenditure) |
22,300 |
|
|
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|
|
|
|
|||
|
42,150 |
|
42,150 |
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|
|
|
|
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Balance Sheet as on Dec. 31, 2016 |
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Liabilities |
Amount Rs |
Assets |
Amount Rs |
Capital Fund on Dec. 31, 2016 (Balancing Figure) |
38,550 |
Subscription Outstanding |
2,000 |
|
|
Cash in Hand |
4,000 |
|
|
Cash at Bank |
15,550 |
|
|
Furniture |
12,000 |
|
|
Books |
5,000 |
|
38,550 |
|
38,550 |
|
|
|
|
Balance Sheet as on Dec. 31, 2017 |
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Liabilities |
Amount Rs |
Assets |
Amount Rs |
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Capital |
38,550 |
|
Prepaid Rent |
500 |
|
Add: Surplus |
22,300 |
60,850 |
Books |
5,000 |
|
|
|
Add: Purchases |
7,000 |
12,000 |
|
Salary Outstanding |
600 |
|
|
||
Subscription Received in Advance for 2018 |
500 |
Furniture |
12,000 |
|
|
|
|
Add: Purchases |
10,500 |
|
|
|
|
|
22,500 |
|
|
|
|
Less: Sale |
(5,000) |
17,500 |
|
|
|
|
|
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|
|
Fixed Deposit |
18,000 |
|
|
|
|
Add: Accrued Interest |
450 |
18,450 |
|
|
|
|
|
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|
|
Cash in Hand |
|
3,000 |
|
|
|
Cash at Bank |
|
8,200 |
|
|
|
Subscription Outstanding for 2017 |
1,500 |
|
|
|
|
Add: Outstanding for 2016 |
800 |
2,300 |
|
|
|
|
|
||
|
61,950 |
|
61,950 |
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