Question

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.

Answer 1

Star Citizen Association, Bilaspur Income and Expenditure Account for the year ending March 31,2012
Dr.						Cr.
Expenditure		Amount (Rs)	Income			Amount (Rs)
Stationery			Subscription		81,500
Stock of Stationery as on Apr,01,2011	650		Add: Outstanding at the end		8,200	89,700
Add: Purchases	6,000		Donations (50% Capitalised)			25,000
Less: Stock of Stationery as on Mar.31,2012	1,150	5,500	Interest on Deposits			30,000
Sundry Expenses		4,800	Picnic Receipts	5,750
Postage and Telegram		1,500	Add: Outstanding	4,250		10,000
Annual General Meeting Expenses		4,500
Insurance Premium		3,450
Depreciation on Furniture		1,300
Picnic Expenses		7,900
Salaries paid		20,000
Surplus (Excess of Income over Expenditure)		1,05,750
		1,54,700				1,54,700

Working Notes:
Furniture Purchased on 01/10/2011 for Rs 26,000
Depreciation for 6 months @ 10% p.a. Rs 1,300
(01/10/2011 to 31/03/2012)