PRACTICAL PROBLEMS

(Loss on Sale of Asset)

Following is the Receipts and Payments Account of Chamber of Commerce, Kolhapur, for the year ending 31/03/2012 and some additional information. You are required to prepare the Income and Expenditure Account for the year ending 31/03/2012 and Balance Sheet as at that date.

Receipts and Payments Account for the year ending 31.03.2012

Dr.

Cr.

Receipts

Amount

Rs

Payments

Amount

Rs

To Balance b/d

11,960

By Printing and Stationery

6,950

(Cash at Bank)

By Repairs

2,100

To Subscriptions

36,500

By Rent

8,500

(including Rs 2,500 for 2010-2011)

By Books

20,000

To Sale of Furniture

12,000

By Travelling Expenses

2,000

(Book Value Rs 18,000)

By Investments

40,000

To Donations

27,000

By Insurance

1,700

To Admission Fees

5,050

By Balance c/d

11,260

(Revenue)

(Cash at Bank)

92,510

92,510

Additional Information:
1)

Particulars

01-04-2011
31-03-2012

Outstanding Subscriptions
3,000 5,000

Furniture
32,000 ?

Building Fund
1,45,000 ?

Capital Fund
1,51,960 ?

Investments
2,50,000 ?

2) Neglect depreciation on the part of furniture sold during the year. But depreciate the remaining furniture by Rs 1,400.

3) Donation is received for Building Fund.

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Solution

Chamber of Commerce, Kollahpur

Income and Expenditure Account

for the year ending March 31,2012

Dr.

Cr.

Expenditure

Amount

(Rs)

Income

Amount (Rs)

Printing and Stationery

6,950

Subscription

36,500

Repairs

2,100

Less: Outstanding in the beginning

2,500

Rent Paid

8,500

Add: Outstanding at the end

5,000

39,000

Loss on Sale of Furniture

6,000

Admission Fees

5,050

Travelling Expenses

2,000

Insurance

1,700

Depreciation on Furniture

1,400

Add: Salaries Outstanding

Surplus (Excess of Income over Expenditure)

15,400

44,050

44,050

Balance Sheet

as on March 31,2012

Liabilities

Amount

(Rs)

Assets

Amount (Rs)

Capital Fund

Furniture

32,000

Opening Balance

1,51,960

Less: Purchases

18,000

Add: Surplus

15,400

1,67,360

14,000

Building Fund

1,45,000

Less: Depreciation

1,400

12,600

Add: Donation

27,000

1,72,000

Subscription Outstanding

For 2010-11

500

For 2011-12

5,000

5,500

Investment in Securities

2,50,000

Add: Further Investments

40,000

2,90,000

Books

20,000

Bank

11,260

3,39,360

3,39,360

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Similar questions

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

(Only Income and Expenditure Account)

The following is the Receipts and Payments Account of Star Citizen’s Association, Bilaspur for the year ending on 31/03/2012.

Receipts and Payment Account for the year ending on 31/03/2012
Dr.	Cr.
Receipts		Amount Rs	Amount Rs	Payments	Amount Rs	Amount Rs
To Balance b/d			5,500	By Postage and Telegram		1,500
To Subscriptions				By Stationary Purchased		6,000
2010-2011		3,900		By Fixed Deposits		1,00,000
2011-2012		81,500		By Picnic Expenses		7,900
2012-2013		2,500	87,900	By Salaries		20,000
To Entrance Fees			2,000	By Annual General -
(to be Capitalized)				meeting expenses		4,500
To Donations			50,000	By Insurance Premium		3,450
To Legacies			10,000	By Sundry Expenses		4,800
To Interest on Deposits			30,000	By Furniture		26,000
To Picnic Receipts			5,750	By Balance c/d		17,000
			1,91,150			1,91,150

Adjustments:

1) Outstanding Picnic Receipts Rs 4,250.

2) Furniture was purchased on 01/10/2011 and it is to be depreciated @ 10% p.a.

3) Outstanding subscriptions for current year Rs 8,200.

4) Stock of Stationery on 01/04/2011 was Rs 650 and on 31/03/2012 was Rs 1,150.

5) Entries amount of legacies and 50% of Donations are to be capitalized.

With the above information, you are required to prepare Income and Expenditure Account for the year ending on 31/03/2012.

PRACTICAL PROBLEMS

(Simple Problem)
With the information given below, prepare Income and Expenditure Account and Balance sheet of Sudarshan charitable Organisation for the year ending on 31-03-2012.

Receipts and Payment Account for the year ending on 31-03-2012
Dr.						Cr.
Receipts	Amount Rs	Amount Rs	Payments	Amount Rs	Amount Rs
To Balance b/d			By Salaries		18,000
Cash in Hand	500		By Printing and stationery		20,000
Cash at Bank	39,500	40,000	By Charity Expenses		20,000
To Subscriptions		81,000	By Investments		60,000
(includes Rs 5,500 for 2009-10)			By Office expenses		2,000
Interest on Investments		1,800	By Balance c/d
To Sale of Furniture		8,000	Cash in Hand	700
(Book Value Rs 10,000)			Cash at Bank	10,100	10,800
		1,30,800			1,30,800

Additional Information:

1) There are Rs 800 members, paying annual subscription Rs 100 each.

2) Outstanding salary Rs 2,000.

3) The Assets on 01-04-2012 were as following:

Furniture Rs 40,000, Investment Rs 20,000, Land Rs 1,00,000

4) On 01-04-2012 Capital Fund was Rs 2,05,500

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.

Prepare Income and Expenditure Account and Balance Sheet for the year ended December 31, 2016 from the following Receipt and Payment Account and Balance Sheet of culture club:

Receipt and Payment Account for the year ending March 31, 2016
Receipts		Amount Rs	Payments	Amount Rs
Opening cash balance		12,000	Furniture	4,000
Subscription			Telephone expenses	800
2014-2015	2,000		Salary
2015-2016	22,000	24,000	2014-2015	1,000
Entrance fees		2,800	2015-2016	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 March 31, 2015
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

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Particulars	01-04-2011	31-03-2012
Outstanding Subscriptions	3,000	5,000
Furniture	32,000	?
Building Fund	1,45,000	?
Capital Fund	1,51,960	?
Investments	2,50,000	?

Chamber of Commerce, Kollahpur Income and Expenditure Account for the year ending March 31,2012
Dr.				Cr.
Expenditure	Amount (Rs)	Income		Amount (Rs)
Printing and Stationery	6,950	Subscription	36,500
Repairs	2,100	Less: Outstanding in the beginning	2,500
Rent Paid	8,500	Add: Outstanding at the end	5,000	39,000
Loss on Sale of Furniture	6,000	Admission Fees		5,050
Travelling Expenses	2,000
Insurance	1,700
Depreciation on Furniture	1,400
Add: Salaries Outstanding
Surplus (Excess of Income over Expenditure)	15,400
	44,050			44,050

Balance Sheet as on March 31,2012
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital Fund			Furniture	32,000
Opening Balance	1,51,960		Less: Purchases	18,000
Add: Surplus	15,400	1,67,360		14,000
Building Fund	1,45,000		Less: Depreciation	1,400	12,600
Add: Donation	27,000	1,72,000	Subscription Outstanding
			For 2010-11	500
			For 2011-12	5,000	5,500
			Investment in Securities	2,50,000
			Add: Further Investments	40,000	2,90,000
			Books		20,000
			Bank		11,260
		3,39,360			3,39,360