Question

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.

Answer 1

Bavdhan Pensioners Association Income and Expenditure Account for the year ending March 31,2011
Dr.		Cr.
Expenditure	Amount (Rs)	Income		Amount (Rs)
Printing and Stationery		Subscription	85,000
Rent Paid	6,000	Add: Outstanding at the end	10,000	95,000
Expenses for Get-Together Function	3,300	General Donation		25,000
Travelling Expenses	2,800
Charity	1,000
Depreciation on Furniture	2,500
Salaries paid	4,500
Surplus (Excess of Income over Expenditure)	99,900
	1,20,000			1,20,000

Balance Sheet as on March 31,2011
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital Fund			Furniture	30,500
Entrance Fees	11,000		Less: Depreciation	2,500	28,000
Add: Donation	99,900	1,10,900	Fixed Assets		50,000
Subscription received in advance		8,900	Outstanding Subscription		10,000
			Cash in hand		31,800
		1,19,800			1,19,800