How do you balance income and expenditure accounts?

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Solution

The adjusting figure of the income and expenditure account is either excess or deficit and will be moved to the capital fund on the sheet. On the off chance that the complete credit side of the income and expenses account is more than the absolute of the debit side, the distinction addresses excess or surplus.

Also see:

Income and Expenditure Account

Classification of Expenditure

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Similar questions

Q. How are the following items of subscriptions shown in the Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheets as at 31st March, 2017 and 2018 ?
₹
Subscriptions received during the year ended 31st March, 2018 3,58,500
Subscriptions outstanding on 31st March ,2017 30,000
Subscriptions received in Advance on 31st March,2017 22,500
Subscriptions received in Advance on 31st March,2018 13,500
Subscriptions outstanding on 31st March ,2018 37,500
(including ₹ 12,500 for the year ended 31st March, 2017)

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

Balance of Income and Expenditure Account shows ____

Q. Income and Expenditure accounts shows a balance of ________________.

Q. The balance of income and expenditure account shows .

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