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Question

Following is the Receipt and Payment Account of Women’s Welfare Club for the year ended December 31, 2007:

Receipt and Payment Account for the year ending December 31, 2007

Receipts

Amount

Rs

Payments

Amount

Rs

Balance b/d

7,250

Salary

12,500

Subscriptions

81,750

Stationery

1,700

Donations

3,000

Electricity charges

9,550

Grant from Government

15,000

Insurance

7,500

Sale of newspapers

300

Equipments

30,000

Proceeds of charity show

16,500

Petty expenses

500

Interest on investments @ 10% for full year

7,000

Expenses on charity show

12,900

Sundries income

400

Newspapers

1,000

Lectures fee

16,500

Honorarium to Secretary

12,000

Balance c/d

27,050

1,31,200

1,31,200

Additional Information:

01.01.2007

Rs

31.12.2007

Rs

Outstanding salaries

1,200

1,800

Insurance prepaid

700

300

Subscription outstanding

3,750

2,500

Subscription received in advanced

1,750

1,000

Electricity charges outstanding

1,250

Stock of stationery

2,250

700

Equipments

25,600

50,200

Building

1,20,000

1,14,000

Prepare Income and Expenditure Account for the year ended December 31, 2007 and Balance Sheet as on that date.

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Solution

Books of Women Welfare Club

Income and Expenditure Account as on December 31, 2007

Dr.

Cr.

Expenditure

Amount

Rs

Income

Amount

Rs

Salary

12,500

Subscriptions

81,750

Add: O/s on Dec. 31, 2007

1,800

Add: O/s on Dec. 31, 2007

2,500

14,300

84,250

Less: O/s on Dec. 31, 2006

(1,200)

13,100

Less: O/s on Dec. 31, 2006

(3,750)

80,500

Stationery

1,700

Add: Advance on Dec. 31, 2006

1,750

Add: Opening Stock

2,250

82,250

3,950

Less: Advance on Dec.31, 2007

(1,000)

81,250

Less: Closing Stock

(700)

3,250

Donations

3,000

Electric Charges

9,550

Grant from Government

15,000

Add: O/s on Dec. 31, 2007

1,250

10,800

Sale of Newspapers

300

Profit from Charity show (16,500–12,900)

3,600

Insurance

7,500

Interest on Investments

7,000

Add: Prepaid in 2006

700

Sundries Income

400

8,200

Less: Prepaid in 2007

(300)

7,900

Depreciation on Equipments

5,400

Petty Expenses

500

Newspapers

1,000

Lectures Fee

16,500

Honorarium to Secretary

12,000

Depreciation on Building

6,000

Surplus (Balancing Figure)

34,100

1,10,550

1,10,550

Balance Sheet as on December 31, 2006

Liabilities

Amount

Rs

Assets

Amount

Rs

Outstanding Salaries

1,200

Insurance Prepaid

700

Subscription in Advance

1,750

Subscription Outstanding

3,750

Stock of Stationery

2,250

Capital Fund (Balancing Figure)

2,26,600

Equipments

25,600

Building

1,20,000

Cash and Bank

7,250

Investments {7,000 × (100/10)}

70,000

2,29,550

2,29,550

Balance Sheet as on December 31, 2007

Liabilities

Amount

Rs

Assets

Amount

Rs

Outstanding Salaries

1,800

Equipments

25,600

Subscription in Advance

1,000

Add: Purchases

30,000

Electricity Charges Outstanding

1,250

55,600

Capital Fund

2,26,600

Less: Depreciation

(5,400)

50,200

Add: Surplus

34,100

2,60,700

Insurance Prepaid

300

Subscription Outstanding

2,500

Stock of Stationery

700

Building

1,20,000

Less: Depreciation

(6,000)

1,14,000

Cash and Bank

27,050

Investments

70,000

2,64,750

2,64,750

NOTE: As per the solution, the Surplus is Rs 34,100 and the Total of Balance Sheet is Rs 2,64,750; however, the answer given in the book are Rs 79,700 and Rs 1,23,800 respectively.


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Q.

Prepare Income and Expenditure Account and Balance Sheet for the year ended December 31, 2006 from the following Receipt and Payment Account and Balance Sheet of culture club:

Receipt and Payment Account for the year ending December 31, 2006

Receipts

Amount

Rs

Payments

Amount

Rs

Opening cash balance

12,000

Furniture

4,000

Subscription

Telephone expenses

800

2005

2,000

Salary

2006

22,000

24,000

2005

1,000

Entrance fees

2,800

2006

4,000

Locker rent

1,000

Newspapers

700

Life membership fee

1,200

Sundry expenses

1,000

Government grant

11,000

Defence bonds

18,000

Land

20,000

Closing cash balance

2,500

52,000

52,000

Balance Sheet for the year ending December 31, 2005

Liabilities

Amount

Rs

Assets

Amount

Rs

Advance locker rent

200

Cash in hand

12,000

Subscription Received in Advance

1,000

Outstanding Expenses

3,000

Outstanding salary

2,000

Building

35,000

Loan

10,000

Capital fund

36,800

50,000

50,000

Q.

From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended December 31, 2006 and the Balance Sheet as on that date.

Receipt and Payment Account for the year ending December 31, 2006

Receipts

Amount

Rs

Payments

Amount

Rs

Balance b/d

3,500

General expenses

900

Subscription:

2005

2006

2007

1,800

70,000

3,000

75,000

Salary

Postage

Electricity charges

Furniture

16,000

1,300

7,800

26,500

Sale of old Books

2,000

Books

13,000

(Costing Rs 3,200)

Newspapers

600

Rent from use of hall

17,000

Meeting expenses

7,200

Sale of newspapers

400

T.V. set

16,000

Profit from entertainment

7,300

Balance c/d

15,900

1,05,200

1,05,200

Additional Information:

(a)

The club has 100 members each paying an annual subscription of Rs900. Subscriptions outstanding on December 31, 2005 were Rs 3,600.

(b)

On December 31, 2006 , salary outstanding amounted to Rs 1,000, Salary paid included Rs 1,000 for the year 2005.

(c)

On January 1, 2006 the club owned land and building Rs 25,000, furniture Rs 2,600 and books Rs 6,200.

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