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Income and Expenditure Account

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Question

PRACTICAL PROBLEMS

Following is the accounting information for the year 2009-2010 of Cricket Club, Pune, You are required to prepare Income and Expenditure Account as on 31.03.2010 and Balance Sheet as on that date.

Balance Sheet as on 01.04.2009

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital Fund

67,100

Land

1,20,000

Building Fund

54,000

Sports Material

32,000

Bank Overdraft

37,400

Cash in Hand

2,200

Outstanding Subscriptions

2007-2008

Rs 1,800

2008-2009

Rs 2,500

4,300

1,58,500

1,58,500

Receipts and Payments Account for year ending on 31-03-2010

Dr.

Cr.

Receipts

Amount

Rs

Amount

Rs

Payments

Amount

Rs

Amount

Rs

To Balance b/d

2,200

Bank Overdraft (repaid)

37,400

(cash in Hand)

By Salaries

25,600

To subscription

By Electricity Charges

2,250

2007-2008

1,800

By Rent and Taxes

1,750

2008-2009

2,500

By Printing and Stationery

5,100

2009-2010

65,500

69,800

By Entertainment Expenses

8,700

To Donations

11,000

31/03/2010

To Entertainment Receipts

8,800

By Balance c/d

To Entrance Fees

2,000

Cash in Hand

3,000

Cash at Bank

10,000

93,800

93,800

Adjustments:

1) Donation are received for Building Fund.

2) Entrance Fees are to be Capitalized.

3) Outstanding Subscription Rs 1,500.

4) Depreciate sport Material @ 12 1/2% p.a.

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Solution

Cricket Club, Pune

Income and Expenditure Account

for the year ending March 31,2010

Dr.

Cr.

Expenditure

Amount

(Rs)

Income

Amount (Rs)

Printing and Stationery

5,100

Subscription

65,500

Salaries paid

25,600

Add: Outstanding at the end

1,500

67,000

Electricity Charges

2,250

Entertainment Receipts

8,800

Rent and Taxes

1,750

General Donation

Entertainment Expenses

8,700

Depreciation on Sports Material

4,000

Surplus (Excess of Income over Expenditure)

28,400

75,800

75,800

Balance Sheet

as on March 31,2010

Liabilities

Amount

(Rs)

Assets

Amount (Rs)

Capital Fund

Sports Material

32,000

Opening Balance

67,100

Less: Depreciation

4,000

28,000

Add: Surplus

28,400

95,500

Land

1,20,000

Building Fund

54,000

Subscription Outstanding

1,500

Add: Donations

11,000

65,000

Cash in Hand

3,000

Entrance Fees

2,000

Cash at Bank

10,000

1,62,500

1,62,500

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PRACTICAL PROBLEMS

(Outstanding Expenses and Prepaid Expenses)

From the following information supplied to you, prepare Income and Expenditure Account for the year ending on 31/03/2013 and Balance Sheet as on that date for Suryodaya Club, Nasik.

Balance Sheet as on 01/04/2012
Liabilities	Amount Rs	Assets	Amount Rs
Capital Fund	50,000	Land	60,000
Bank Overdraft	35,000	Outstanding Subscriptions	5,000
Outstanding Salary	2,000	Prepaid Insurance Premium	2,500
		Cash in Hand	9,500
		Furniture	10,000
	87,000		87,000

Receipts and Payments Account for the year ending 31.03.2013
Dr.					Cr.
Receipts	Amount Rs	Payments		Amount Rs
To Balance b/d	9,500	By Bank Overdraft (Repaid)		35,000
To Subscription	95,000	By Salary		12,500
To Admission Fees	7,500	By Insurance Premium		8,000
		By Interest		1,700
		By Miscellaneous Expenses		4,400
		By Furniture		20,000
		By Balance c/d
		Cash in Hand	5,400
		Cash at Bank	25,000	30,400
	1,12,000			1,12,000

Adjustments:

1) Subscriptions received, includes Rs 3,000 for 2011-2012 and Outstanding Subscriptions for 2012-2013 was Rs 8,000.

2) Salary Paid includes Rs 2,000 Paid for last year

3) On 31/03/2013, Prepaid Insurance Premium was Rs 3,000

4) Admissions Fees are to be capitalized.

5) Depreciate Furniture by Rs 2,000

PRACTICAL PROBLEMS

(Accounts of a Charitable Hospital)

Following information has been provided by “Janseva Charitable Hospital”, Latur. You are required to prepare Income and Expenditure Account for the year ending on 31/03/2013 and Balance Sheet as on that date.

Balance Sheet as on 01/04/2012
Liabilities	Amount Rs	Assets	Amount Rs
Capital Fund	10,37,000	Building	10,00,000
Bank Loan	6,00,000	Ambulance	3,50,000
Outstanding bill for Drugs	45,000	Stock of Drugs	35,000
		Hospital Equipments	2,95,000
		Cash in Hand	2,000
	16,82,000		16,82,000

Receipts and Payments Account for the year ending 31.03.2013
Dr.	Cr.
Receipts		Amount Rs	Payments	Amount Rs
To Balance b/d		2,000	By Purchases of Drugs	1,90,000
To subscription		2,10,000	By Salary of staff	85,000
To Life Membership Fees		27,500	By Honararium to Doctors	3,85,000
To Hospital Receipts		5,20,900	By Repairs and Maintenance	17,900
(Revenue)			By Furniture	40,000
			By General Expenses	12,600
			By Balance c/d	29,900
		7,60,400		7,60,400

Adjustments:

1) On 31/03/2013 stock of Drugs was valued Rs 20,000.

2) Depreciate Building @ 5% p.a. and Ambulance by Rs 20,000

3) Life Membership Fees are to be capitalized.

PRACTICAL PROBLEMS

(Accounting of a School)

From the information given below of Jeevan Vikas Vidyalaya Khamgaon, You are required to prepare, Income and Expenditure Account and Balance Sheet for the year ending on 31.03.2011.

Balance Sheet as at 01.04.2010
Liabilities	Amount Rs	Assets	Amount Rs
Capital Fund	4,99,100	Library Books	1,15,500
Loan	5,00,000	Laboratory Equipments	1,25,000
		Furniture	1,10,000
		Building	6,25,000
		Cash in Hand	3,500
		Cash at Bank	20,100
	9,99,100		9,99,100

Receipts and Payments Account for the year ending 31.03.2011
Dr.	Cr.
Receipts		Amount Rs	Payments		Amount Rs
To Balance b/d			By Salaries		6,25,200
Cash in Hand		3,500	By Purchases
Cash at Bank		20,100	i. Laboratory Equipments	10,000
To Tuition Fees		3,67,500	ii. Library Books	50,000
To Term Fees		35,000	iii. Furniture	20,000	80,000
To Admission Fees		30,600	By Sundry Expenses		10,000
To Government Grant (Revenue)		3,50,000	By Printing and Stationery		35,800
To Sundry Receipts		1,300	By Annual Social
			Gathering Expenses		18,000
			By Balance c/d
			Cash in Hand		4,000
			Cash at Bank		35,000
		8,08,000			8,08,000

Adjustments:

1) Tuition Fees Outstanding Rs 13,500

2) Outstanding Interest on Loan Rs 60,000

3) Entire admission Fees are to be Capitalized.

4) Depreciation is to be written off as under:

Library Books Rs 50,000	Furniture Rs 30,000
Laboratory Equipment Rs 20,000	Building Rs 30,000

PRACTICAL PROBLEMS

From the following Receipts and Payments Account of Nanasaheb Patil Engineering College, Faizpur for the year ending 31 March 2013 and additional information, Prepare Income and Expenditure Account for year ending 31/03/2013 and a Balance Sheet as on that date.

Receipts and Payments Account for the year ending 31.03.2013
Dr.	Cr.
Receipts		Amount Rs	Payments	Amount Rs
To Balance b/d			By Salaries to
Cash in Hand		15,950	• Teaching Staff	8,50,500
Cash at Bank		1,00,070	• Office Staff	1,81,000
To Interest		51,000	By Electricity	51,900
To Subscriptions		25,800	By Books	57,800
To Life Membership Fees		20,500	By Furniture	45,000
To Donations		6,36,000	By Stationery	19,950
To tuition Fees		11,20,000	By Fixed Deposit	7,50,000
To Term Fees		2,00,900	31/03/2013
To Admission Fees		55,000	By Balance c/d
To Sundry Receipts		6,930	Cash in Hand	13,500
			Cash at Bank	2,62,500
		22,32,150		22,32,150

Additional Information:

Particulars	01/04/2012	31/03/2013
Books	5,50,000	5,50,000
Furniture	2,15,000	2,00,000
Building Fund	9,35,000	?
Fixed Deposits	8,00,000	?
Capital Fund	7,46,020	?

2) 50% of Donations are for Building Fund and the balance is to be treated as revenue income.

3) Outstanding Subscription Rs 4,200.

4) Life Membership Fees are to be capitalized.

PRACTICAL PROBLEMS

(Newly started Associations)

Following is the Receipts and Payments Account of Bavdhan Pensioners Association newly started on 01.04.2010.

Receipts and Payment Account for the year ending on 31-03-2011
Dr.						Cr.
Receipts	Amount Rs	Amount Rs	Payments	Amount Rs	Amount Rs
To Subscriptions received			By rent		6,000
For 2010-2011	85,000		By Travelling Expenses		2,800
For 2011-2012	6,900		By Expenses for get-together
For 2012-2013	2,000		Function		3,300
		93,900	By Charity		1,000
To Entrance Fees		11,000	By Salaries		4,500
To Donations		25,000	By Furniture		30,500
			By Fixed Deposit		50,000
			By Balance c/d		31,800
		1,29,900			1,29,900

Adjustments:

1) Outstanding Subscription for current year Rs 10,000.

2) Entrance Fees are to be capitalized.

3) ‘Capital Fund’ should be created out of Entrance Fees and Surplus of the current year’.

4) Depreciate Furniture by Rs 2,500.

You are required to prepare Income and Expenditure Account for the year ending on 31/03/2011 and Balance Sheet as on that date.

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Balance Sheet as on 01.04.2009
Liabilities	Amount Rs	Assets		Amount Rs
Capital Fund	67,100	Land		1,20,000
Building Fund	54,000	Sports Material		32,000
Bank Overdraft	37,400	Cash in Hand		2,200
		Outstanding Subscriptions
		2007-2008	Rs 1,800
		2008-2009	Rs 2,500	4,300
	1,58,500			1,58,500

Receipts and Payments Account for year ending on 31-03-2010
Dr.	Cr.
Receipts		Amount Rs	Amount Rs	Payments	Amount Rs	Amount Rs
To Balance b/d			2,200	Bank Overdraft (repaid)		37,400
(cash in Hand)				By Salaries		25,600
To subscription				By Electricity Charges		2,250
2007-2008		1,800		By Rent and Taxes		1,750
2008-2009		2,500		By Printing and Stationery		5,100
2009-2010		65,500	69,800	By Entertainment Expenses		8,700
To Donations			11,000	31/03/2010
To Entertainment Receipts			8,800	By Balance c/d
To Entrance Fees			2,000	Cash in Hand		3,000
				Cash at Bank		10,000
			93,800			93,800

Cricket Club, Pune Income and Expenditure Account for the year ending March 31,2010
Dr.				Cr.
Expenditure	Amount (Rs)	Income		Amount (Rs)
Printing and Stationery	5,100	Subscription	65,500
Salaries paid	25,600	Add: Outstanding at the end	1,500	67,000
Electricity Charges	2,250	Entertainment Receipts		8,800
Rent and Taxes	1,750	General Donation
Entertainment Expenses	8,700
Depreciation on Sports Material	4,000
Surplus (Excess of Income over Expenditure)	28,400
	75,800			75,800

Balance Sheet as on March 31,2010
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital Fund			Sports Material	32,000
Opening Balance	67,100		Less: Depreciation	4,000	28,000
Add: Surplus	28,400	95,500	Land		1,20,000
Building Fund	54,000		Subscription Outstanding		1,500
Add: Donations	11,000	65,000	Cash in Hand		3,000
Entrance Fees		2,000	Cash at Bank		10,000
		1,62,500			1,62,500