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
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Dr.
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Cr. |
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Receipts
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Amount
Rs
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Amount
Rs
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Payments
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Amount
Rs
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Amount
Rs
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To Subscriptions received
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By rent
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6,000
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For 2010-2011
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85,000
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By Travelling Expenses
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2,800
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For 2011-2012
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6,900
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By Expenses for get-together
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|
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For 2012-2013
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2,000
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Function
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3,300
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93,900
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By Charity
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1,000
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To Entrance Fees
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11,000
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By Salaries
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4,500
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To Donations
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25,000
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By Furniture
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30,500
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By Fixed Deposit
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50,000
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By Balance c/d
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31,800
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1,29,900
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1,29,900
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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.
Bavdhan Pensioners Association
Income and Expenditure Account
for the year ending March 31,2011
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Dr.
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Cr.
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Expenditure
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Amount
(Rs)
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Income
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Amount (Rs)
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Printing and Stationery
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Subscription
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85,000
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Rent Paid
|
6,000
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Add: Outstanding at the end
|
10,000
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95,000
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Expenses for Get-Together Function
|
3,300
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General Donation
|
25,000
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|
Travelling Expenses
|
2,800
|
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Charity
|
1,000
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Depreciation on Furniture
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2,500
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Salaries paid
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4,500
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Surplus (Excess of Income over Expenditure)
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99,900
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1,20,000
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1,20,000
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Balance Sheet
as on March 31,2011
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Liabilities
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Amount
(Rs)
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Assets
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Amount (Rs)
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Capital Fund
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Furniture
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30,500
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Entrance Fees
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11,000
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Less: Depreciation
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2,500
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28,000
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Add: Donation
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99,900
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1,10,900
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Fixed Assets
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50,000
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Subscription received in advance
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8,900
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Outstanding Subscription
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10,000
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Cash in hand
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31,800
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1,19,800
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1,19,800
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