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

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Solution

Suryodaya Club, Nasik

Income and Expenditure Account

for the year ending March 31,2013

Dr.

Cr.

Expenditure

Amount

(Rs)

Income

Amount (Rs)

Depreciation on Furniture

2,000

Subscription

95,000

Less: Outstand. in the beg. 3,000

Miscellaneous Expenses

4,400

Add: Outstand. at the end

10,000

1,02,000

Interest

1,700

Insurance Premium

8,000

Less: Prepaid at the end

3,000

Add: Prepaid at the beginning

2,500

7,500

Salaries paid

12,500

Less: Salaries Outstanding at the end

2,000

Add: Outstanding in the beginning

2,000

12,500

Surplus (Excess of Income over Expenditure)

73,900

1,02,000

1,02,000

Balance Sheet

as on March 31,2013

Liabilities

Amount

(Rs)

Assets

Amount (Rs)

Capital Fund

Furniture

10,000

Opening Balance

50,000

Add: Purchases

20,000

Add: Admission Fees

7,500

Less: Depreciation

2,000

28,000

Add: Surplus

73,900

1,31,400

Subscription Outstanding

For 2011-12

2,000

For 2012-13

8,000

10,000

Prepaid Insurance

3,000

Land

60,000

Investment in Securities

Stock of Food Stuff

Cash in Hand

5,400

Cash at Bank

25,000

1,31,400

1,31,400

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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

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

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.

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

(Presentation of Subscriptions only)

Balance Sheet as on 01/04/2012
Liabilities	Amount Rs	Amount Rs	Assets	Amount Rs	Amount Rs
Subscription received in			Outstanding subscriptions
Advance for 2012-2013		15,000	2010-2011	20,000
			2011-2012	30,000
					50,000

Receipts and Payments Account for the year ending on 31-03-2013
Dr.	Cr.
Receipts		Amount Rs	Amount Rs	Payments	Amount Rs	Amount Rs
To subscriptions
2010-2011		16,000
2011-2012		25,000
2012-2013		3,30,000
2013-2014		19,000

Adjustment:
Outstanding Subscription for 2012-2013 is Rs 22,000. With the above information present the item 'Subscription’ in Income and expenditure Account and Balance sheet for the year ended on 31^st March 2013.

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Suryodaya Club, Nasik Income and Expenditure Account for the year ending March 31,2013
Dr.					Cr.
Expenditure		Amount (Rs)	Income		Amount (Rs)
Depreciation on Furniture		2,000	Subscription	95,000
			Less: Outstand. in the beg.	3,000
Miscellaneous Expenses		4,400	Add: Outstand. at the end	10,000	1,02,000
Interest		1,700
Insurance Premium	8,000
Less: Prepaid at the end	3,000
Add: Prepaid at the beginning	2,500	7,500
Salaries paid	12,500
Less: Salaries Outstanding at the end	2,000
Add: Outstanding in the beginning	2,000	12,500
Surplus (Excess of Income over Expenditure)		73,900
		1,02,000			1,02,000

Balance Sheet as on March 31,2013
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital Fund			Furniture	10,000
Opening Balance	50,000		Add: Purchases	20,000
Add: Admission Fees	7,500		Less: Depreciation	2,000	28,000
Add: Surplus	73,900	1,31,400	Subscription Outstanding
			For 2011-12	2,000
			For 2012-13	8,000	10,000
			Prepaid Insurance		3,000
			Land		60,000
			Investment in Securities
			Stock of Food Stuff
			Cash in Hand		5,400
			Cash at Bank		25,000
		1,31,400			1,31,400