Question

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

Answer 1

Sudarshan Charitable Organisation Income and Expenditure Account for the year ending March 31,2012
Dr.				Cr.
Expenditure		Amount (Rs)	Income	Amount (Rs)
Printing and Stationery		20,000	Subscription (800 × 100)	80,000
Charity Expenses		20,000	Interest on Investments	1,800
Office Expenses		2,000
Loss on Sale of Furniture		2,000
Salaries paid	18,000
Add: Salaries Outstanding	2,000	20,000
Surplus (Excess of Income over Expenditure)		17,800
		81,800		81,800

Balance Sheet as on March 31, 2012
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital Fund			Furniture	40,000
Opening Balance	2,05,500		Less: Sale	10,000	30,000
Add: Surplus	17,800	2,23,300	Investment	20,000
Salaries Outstanding		2,000	Add: Further Investments	60,000	80,000
			Land		1,00,000
			Outstanding Subscription		4,500
			Cash in hand		700
			Cash in Bank		10,100
		2,25,300			2,25,300

Working Notes:

Total amount of subscription due for 2011-2012
No. of Members	×	Annual Subscription
800	×	Rs 100	=	Rs 80,000
Less: Amount actually received (Rs 81,000-Rs 5,500 for 2009-10)			=	Rs 75,500
Subscription Outstanding at the end of the year			=	Rs 4,500