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The following table shows the details of subscription for Sony Sports for the year ended 31 st March 2006:
(Q.)
Subscriptions received for the year ended 31 st March 2006 are 1, 25,000. Calculate the amount of subscription to be shown in Income/Expenditure A/c for the year 31 st March 2006.
(3 Marks) (Ans)
Details Subscription received during the year 1,25,000 17,500 12,500 (25,000) (15,000) 1,15,000
Add: Subscription outstanding as on 31.3.06 Add: Subscription received in advance(1.4.05) Less: Subscription outstanding on 1.4.05 Less: Subscription received in advance(31.3.06)
Income from subscription for the year 2005-2006
Concept-2:Life-Membership Fees Life Membership Fees is received by not for profit organisations from its members at the time of admission. It is a capital receipt and hence shown in the Balance Sheet on liability side. Concept-3 Donation/ Legacies: General donations, not meant for specific purpose are credited to Income and Expenditure Account. Specific donations are shown in the Balance Sheet. Concept-4 Entrance Fee: Treatment of Entrance Fee or Admission Fee, depends upon the nature of organisation which is getting it. In absense of any specific information it may be taken as revenue receipt and credited to Income and Expenditure Account.
Concept 5: Sale of old sports material: Any amount realized from sale of sports material will be treated as income. This is shown on the Receipts side of Receipts and Payments Account and credited to Income and Expenditure Account Concept 6:Consumption of stationery etc.
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(Q.) On the basis of information given below calculate the amount of medicines to be debited in the Income and Expenditure Account of Good Health Hospital for the year ended 31.3.2007: 1.4.2006 Rs. Stock of Medicines Creditors for Medicines 1,75,750 15,06,900 31.3.2007 Rs. 1,44,650 18,20,700
Medicine purchased during, the year ended 31.3.2007 were Rs. 60,80,700.
(Ans)
Calculation of Amount to be debited in Income and Expenditure account. Particulars Medicine purchased during the year. Add Opening stock of medicine (i.e. on 1.4.2006) Less Closing stock of medicine (i.e. on 31.3.2007) Less Opening Creditors for medicine (i.e. on 1.4.2006) Add Closing Creditors for medicine (i.e. on 31.3.2007) Amount to be debited in Income and Expenditure account. Amount (Rs.) 60,80,700 1,75,750 (1,44,650) (15,06,900) 18,20,700 64,25,600
On the basis of following information, calculate the amount of stationery to be shown in Income and expenditure account for the year ended 31 s t march 2007.
(Q.)
Stock of stat ionery on 1.4.2006 Stock of stat ionery on 1.4.2007 Amount paid fo r stat ioner y during the year
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Calculation of the amount of stationery to be shown in Income and expenditure account Particulars
Amount paid for stationery during the year Add opening stock Less closing stock Less Creditors beg. Add Creditors end Stationery consumed during the year
Q.) Prepare Receipts and Payments A/c from given information for Dec 31, 1996.
Rs. Opening Cash in hand Opening Cash at Bank Subscriptions Sale of old Newspapers Entrance Fees Donation Sale of old furniture Salaries Insurance Premium Purchase of Books Stationery & Postage Purchase of Sports Materials Interest on Securities Locker Rent 450 6,250 12,500 400 1,000 4,000 2,000 8,000 600 900 4,000 9,000 3,500 4,500 Purchase of Radio set Bicycle Purchased Sale of investment Life membership fees Purchase of Defence Bonds Rent paid Balance Closing Cash in hand Cash at Bank 800 8,200 1,000 1,200 Rs 2,900 2,000 3,000 1,000
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Receipts To Balance b/d Cash in hand Cash at bank To Subscriptions To Sale of newspaper To Sale of old furniture To Entrance Fees To Donation To Sale of Investment To Life Membership Fees To Interest on Securities To Locker Rent TOTAL
(Q.)Prepare
Receipts and Payments A/c for year ending on Dec 31, 1996 Amount (Rs) 450 6,250 12,500 400 2,000 1,000 4,000 3,000 1,000 3,500 4,500 38,600
Payments By Salaries
Amount (Rs) 8,000 4,000 600 900 9,000 2,900 1,000 2,000 1,200 800 8,200 38,600
By Stationery & Postage By Insurance Premium By Books By Sports Materials By Radio Set By Defence Bonds By Bicycle By Rent By Balance c/d Cash in hand Cash at Bank TOTAL
Receip ts
Income and Expenditure Account relating to year 1996 from the figures given below: Amount Payments (Rs.) 1,800 9,000 2,000 By Salaries By Rent By Station ery By Defence Bonds 300 100 By Furniture purch ased By Bicycle purchas ed By closing Balan ce
Amount (Rs.) 4,800 500 2000 3,000 2,000 300 2,400 13, 200
To Op eni ng Balan ce To Subscrip tio ns To Sale o f Investm en t To sale o f old furni ture (Books value Rs. 400) To Do nations
TOTAL
(Ans)
13, 200
TOTAL
Dr. Expenditure To Salaries To Rent To Stationery To Loss on sale of Furniture To surplus (Excess of income over Expenditure) TOTAL
Income and Expenditure A/c For the year ending Dec 1996 Amount (Rs) Income 4,800 By Subscriptions 500 By Donation 200 100 3,500 9,100 TOTAL
9,100
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Following Receipts and Payments Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2007: Receipts Balance b/d Cash in Hand Cash at Bank Donation Subscription Legacies Interest on Investment Sale of Old Newspaper 11,500 12,600 9,000 42,800 18,000 4,500 200 Rs. Payments Charity Rent and Taxes Salary Printing Postage Advertisements Insurances Furniture Investment Balance c/d Cash in Hand Cash at Bank 98,600 9,900 16,600 98,600 Rs. 11,500 3,200 6,000 600 300 4,500 2,000 21,000 23,000
Prepare Income and Expenditure Account for the year ended December 31, 2006 and a Balance Sheet as on that date after the following adjustments: (a) It was decided to treat one -third of the amount received on account of donation as income. (b) Insurance premium was paid in advance for three months. (c) Interest on investment Rs. 1,100 accrued was not received. (d) Rent Rs. 600, salary Rs. 900 and advertisement expenses Rs. 1,000 outstanding as on December 31, 2007.
(Ans) Balance
sheet as on 1-1-2007 Assets Cash in Hand Cash at Bank Rs. 11,500 12,600 24,100 Cr.
Rs. 24,100
24,100 Dr. Income and Expenditure Account For the year ending 31-12-2007 Expenditure To Insurance Less Insurance 2000 500 Rs. Income By Donations (9000 x 1/3)
Rs. 3,000
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Balance Sheet as on 31-12-2007 Liabilities Capital fund 24,100 Add surplus 21,500 Legacies Donations (9000-3000) Rent outstanding Salary outstanding Advertising Expenses Outstanding Total 45,600 18,000 6,000 600 900 1,000 72,100 Total 72,100 Rs. Assets Furniture Investment Prepaid Insurance Interest Accrued Cash in Hand Cash at Bank Rs. 21,000 23,000 500 1,100 9,900 16,600
The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2006:
.(Q.)
Receipts
Amount (Rs.)
Payments
Amount (Rs.)
Balance from last year Subscriptions Life membership fee Donation Profit from entertainment Sale of old Books (Books value Rs. 1,000)
Rent Electric charges Lecturers fee Office expenses Printing and Stationery Legal fee.
750
Books
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Total
48,870
Total
You are required to prepare an Income and Expenditure Account after the following adjustments. (a) Subscription still to be received are Rs. 750, But subscription include Rs. 500 for the year 2007. (b) In the beginning of the year the Sangh owned building Rs. 20,000 and furniture Rs. 3,000 and Books Rs. 2,000. (c) Provide depreciation on furniture @5% (including purchase), books @ 10% and building @ 5%.
(Ans)
Income and expenditure a/c. for the year ending 31-12-2006 Expenditure To rent To electric charges To lecturers fee To office expenses To printing & stationery To legal fee To exp. on nukar drama To dep. on Fur. (150 + 430) To dep. on Books To dep. on Building To loss on sale of books. Rs. 6,600 3,200 730 1,480 1,050 1,870 1,300 580 200 1,000 250 24,590 42,850 Balance sheet as on 1.1.2006 Liabilities Capital fund (balancing figure) Rs. 27,270 Assets Cash in hand Building Furniture Books 27,270 Rs. 2,270 20,000 3,000 2,000 27,270 Total 42,850 Income By subscription 32,500 Add o/s subscription 750 Less subscription in advance 500 By donations By profit from entertainment By interest 32,750 2,500 7,250 350 Rs.
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The following is the receipts and payments account of Bombay Nursing society for the year ended 31 s t march 2007.
(Q.)
By car (purchased) By expenses of car By salaries By board laundry By rent and taxes By drugs and incidental exp. By closing cash balance
To interest
To fees from non members
5,993
Other Information: (1) Donation received for building fund Rs. 100 was wrongly added to subscriptions account. (2) Depreciate car @ 10% pa for full year. (3) Medicines bill due as on 31.3.2007 was Rs. 128. Prepare Income and expenditure account.
(Ans)
Books of Bombay Nursing Society Income and expenditure a/c For the year ended 31.3.2007 Rs. Income 840 By subscriptions 1,115 656 Less building fund 100 380 By interest 200 798 200 3,074 By fees from non members By municipal grant By deficit
To rent and taxes To drugs and incidental expenses 670 Add o/s bill 128 To depreciation on car
Balance Sheet as on 31.12.2006 Liabilities Capital fund Opening Add surplus 27,270 24,590 500 3,250 Rs. 51,860 Assets Cash in hand Cash at bank Building Furniture (8,600+ 3,000- 580) Books(6,500+2,000 1,000 - 200) Outstanding subscriptions 55,610 Rs. 8,040 9,500 19,000 11,020 7,300 750 55,610
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( Q . ) How
will you deal with the given items while preparing the final accounts of a club for the year ended 31 s t March 2007: Particulars Outstanding Locker Rent Advance Locker Rent 31,3,2006 920 600 31,3,2007 1,260 800
Locker rent received during the year 2006 -07 Rs. 6,400
(Ans)
Income and Expenditure Account (An extract) for the year ended 31 March, 2007 Amount
By Locker Rent received during the year
6,540
Add: Outstanding Locker Rent (31.3.2007) Advance Locker Rent ( 31-3-2006) Less: Outstanding Locker Rent (31-3-2006) Advance Locker Rent(31.3.2007)
AMOUNT
AMOUNT 920
600
BALANLESHEET (AN EXTRACT) As at 31 March, 2007 LIABILMEES Advance Locker Rent AMOUNT 800 ASSETS Outstanding Locker Rent AMOUNT 1,260
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Following is the Receipt and Payment Account of Literacy Club for the year -ended 31.3.2006: Receipts Amount Rs. 19,550 Payment Amount Rs.
Balance b/d Subscriptions: 2004 2005 1,200 2005-2006 26,500 2006-2007 500 Sale of old newspapers Government Grants Sale of old furniture (Book value Rs. 7,000) Interest on fixed deposits
Salary
gh
28,200 1,250 10,000 n 5,700 450
Newspaper Electricity bill Fixed deposit (on 1.7.2005 @ 9% p.a.) Books. Rent Furniture Balance c/d
65,150 Additional Information: Subscriptions outstanding as on 31.3.2005 were Rs. 2,000 and on 31.3.2006 Rs. 2,500. On 31.3.2006 salary outstanding was Rs. 600 and rent outstanding was Rs. 1,200.
65,150
The Club owned furniture Rs. 15,000 and books Rs. 7,000 on 1.4.2005. Prepare Income and Expenditure Account of the Club for the year ended 31.3.2006 and ascertain Capital Fund on 31.3.2005.
(Ans) Calculation
Rs. 43,550
43,550
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Expenditure To salary 3,000 Add out. End 600 To newspaper To Electricity bill To rent 6,800 Add out. End 1,200 To loss on sale of furniture To surplus (balancing figure)
Income By interest on fixed deposits 450 Add outstanding 900 By subscription 26,500 Add outstanding end 2,500 By sale of old news papers By government grants
41,600
41,600
Following is the Receipts and payments account of Indian Sports club, prepare Income and Expenditure account and balance sheet as on December 31,2006:
(Q.)
Receipts To balance b/d To subscriptions To Life memb. Fee To entrance fee To tournament fund To locker rent To sale of sports good (Costing Rs. 2200 ) To sale of newspaper To legacy
Payments By salary By electric charges By Billiard table By office expenses By printing & stationery By tournament exp. By repair of ground
Rs. 11,000 5,500 17,500 4,100 2,300 18,500 2,000 7,700 12,000 12,690 10,000
By furniture purchased By sports equipment BY cash in hand By cash at bank By fixed deposit ( on 1.10.06 for 10% p.a.)
30,000 1,33,290
Subscription outstanding was on December 31 ,2005 Rs. 1,200 and Rs. 3,200 on December 31 , 2006. Locker rent outstanding on December 31, 2006 Rs. 250. Salary outstanding on December
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31, 2006 Rs. 1,000. On January 1, 2006, club has building Rs. 36,000, fur niture Rs. 12,000, and Sports equipment Rs. 17,500. Depreciation charged on these items @ 10 % (including purchase).
(Books
Income and Expenditure a/c For the year ending 31st December 2006 Dr. Expenditure To salary Add o/s salary To electric charges To office expenses To printing & stationery To repair of ground To depreciation on building To depreciation on sports equipment To dep. on furniture To surplus 11,000 1,000 12,000 5,500 4,100 2,300 2,000 3,600 2,730 1,970 26,300 60,500 Balance Sheet As on 31.12.2006 Liabilities Capital fund 74,590 Add surplus 26,300 Life membership fee Legacy Tournament fund 26000 Less expenses 18500 Outstanding salary 7,500 1,000 1,00,890 2,200 37,500 Rs. Assets Billiard table Furniture (12,000+7,700-1,970) Sports equipment (17500+12000-2200-2730) Building Locker rent outstanding Subscription out. Accrued int. on FD Cash in hand Cash at bank 10% fixed deposit 24,570 32,400 2,50 3,200 7,50 12,690 10,000 30,000 Rs. 17,500 17,730 60,500 Rs. Income By subs. Add outstanding (End) Less outstanding (beg.) By entrance fees By locker rent Add outstanding By sale of old newspapers By interest accrued on FD By gain on sale of sports goods 1,250 250 1,500 7,50 7,50 3,00 52,000 3,200 1,200 54,000 3,200 Cr. Rs.
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The following is the Receipts and Payments Account of Free Aid Medical society for the year ended 31-3-2000.
(Q.)
for the year ending 31 s t March, 2000 To Balance b/d To Subscriptions To Donations To Interest on Investments 14,000 1,00000 29,000 By Payment for Medicine By Honorarium to Doctors By Salaries By Sundry Expenses By Equipment At 7 % for the year To Charity Show collections 14,000 20,000 1,77,000 Additional Information: (a) Subscription due (b) Subscription received in advance (c) Medicine Stock (d) Creditors for medicine (e) Equipments (f) Buildings 1,000 2,000 20,000 16,000 42,000 80,000 2,000 1,000 30,000 24,000 60,000 76,000 By Charity show expenses By Balance c/d 60,000 20,000 55,000 1,000 30,000 2,000 9,000 1,77,000
You are required to prepare Income and Expenditure Account for the year ended 31 -3-2000 and Balance Sheet as at that date.
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(Ans) Free
Aid Medical Societys Income and Expenditure AccountFor the year ended 31-3-2000 Expenditure Amount Rs. Income Amount Rs.
To Medicine *1 To Honorarium to Doctors To Salaries To Sundry Expenses To Depreciation on : Equipments 12,000*2 Buildings [80,000 76,000] 4,000 To Charity Show Expenses To Surplus Excess of Income Over expenditure
By Subscription 1,00,000 Add: Due on 31-3-00 2,000 Advance 1-4-99 2,000 1,04,000 Less: Due on 1-4-99 1,000 1,03,000 Adv. 31-3-00 1,000 1,02,000 29,000 14,000 20,000
16,000 2,000
Liabilities
Amount Rs.
Assets Buildings
Capital Fund *4 3,39,000 Add: Surplus 13,000 Subscription Received in Advanced Creditors for Medicine 3,52,000 1,000 24,000
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Cr. Rs. 60,000 24,000 84,000 Particulars By Balance b/d By Purchases (Balancing Figure) Rs. 16,000 68,000 84,000
Medicine consumed = Opening Stock + Purchases Closing Stock = *2 Dr. Particulars To Balance b/d To Bank Purchases 30,000 Rs. 42,000 Equipments A/c Particulars By Income & Expenditure Depreciation (Balancing Figure) By Balance c/d 72,000 *3 Calculation of Investments Interest is received at 7% p.a. for full year = Rs. 14,000 Investments = Rs. 14,000 100/7 = Rs. 2,00,000 *4 Calculation of Capital Fund as on 1-4-1999 Balance Sheet As on 1-4-1999 Liabilities Creditors for medicine Subscription received in Advance Capital fund (Balancing Figure) 3,39,000 2,000 Rs. 16,000 Assets Buildings Equipments Medicine Stock Subscription due Investments Cash in Hand 3,57,000 Rs. 80,000 42,000 20,000 1,000 2,00,000 14,000 3,57,000 60,000 72,000 12,000 Cr. Rs. Rs. 20,000 + Rs. 68,000 30,000 = Rs. 58,000
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From the following Receipts and Payments Account of Cricket Club and the additional information given, prepare the Income and Expenditure Account for the year ending 31 -12-99 and the Balance Sheet on that date : Receipts and Payments A/c for the
6,820 2,650 13,240 11,000 820 4,240 1,050 9,720 2,000 5,700 18,800
Dr.
Cricket Club Income and Expenditure Account For the year ending 31-12-1999
Cr.
Expenditure To Maintenance
Rs. 6,820
Rs.
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900
2,800
10,130 2,000
Rs. 72,660
Assets Cash in Hand Cash at Bank Fixed Deposit Subscription Due Stock of Postage stamps Stock of Cricket Goods Crockery
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Liabilities Tournament fund Less: Tournament Exp. Salary Outstanding Capital Add: Excess of Income Over Expenditure 2,210 72,660 20,000 18,000
Rs.
Assets Cash
1,200 1,000
74,870
Accrued Interest on Fixed Deposit Subscription Due 1998 (6,600 6,000) 1999 Stock of: Postage stamps Cricket Goods 900 2,800 77,070 600 8,000 900
77,070
From the following particulars relating to a Charitable Hospital, Prepare Income and Expenditure Account for the year ended 31 s t March, 1993 and Balance sheet as at that time:
(Q.)
Payments By Doctors Honorarium By suppliers of Medicines By Petty Expenses By Salaries By Equipments Purchased
To Balance b/d To subscriptions To Donations To Legacies To Interest on Investment @ 10% for full year To proceeds from Charity Show
7,000 10,450
By Balance c/d
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Additional Information : 1-4-1992 Subscriptions Due Subscriptions received in advance Stock of medicines Supplies of medicines Outstanding salaries Equipment Buildings (cost less depreciation)
(Ans)
Income and Expenditure A/c (for the year ending 31 st March, 1993)
Amount Rs. Particular
Amount
Particular
Rs.
Less:
O.S. Stock
254 47,600
Less:
4,000 35,500
Add:
Due
800 48,400
9,800 25,700
Less:
Recd. In Adv.
300
Add:
Still payable
2,500
28,200 461
Less:
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due
To expenses on Charity
To Depreci ation
Equipment Building
4,600 9,000
82,711 Balance Sheet of Charitable Hospital As on 31st March, 1993 82,711
Particular
Amount Rs.
Particular
Amount Rs.
Subs. Recd. in Advance Suppliers of Medicines Salaries Outstanding Capital Fund As on 1-4-92 Less: Deficit 1,90,036 2,661
Cash in Hand Investments (10%) Equipment as on 1-1-92 Add: Purchase 21,200 15,000 36,200
1,775 70,000
1,87,375
31,600
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Liabilities Subs. recd. in Advance Due to suppliers of Medicines Due for Salaries Capital Funds (Balancing Figure)
Assets Cash in Hand Investments (10%) Subscriptions Due Stock of Medicines Equipments Buildings
1,97,890
( Q . The
following is the Receipts and Payments a/c of Super Time Club for the year ended 31 s t December 2004: Receipts To Cash
To subscript ions
Rs. 10,000
By furniture By Salaries By Printing & stationery By Postage and telegrams By Cost of drama By sundry expenses By balance 400 Cash in hand Cash at bank 89,840
To Proceeds from Drama To interest from securities To sale proceeds from old Furniture (cost Rs. 320)
You are required to compile the Income and Expenditure account for the year ended 31 s t December 2004 and the balance sheet as on that date after taking into account the following information: (1) On 1 s t Jan 2004, the club premises stood at Rs. 1,00,000, Investments at Rs. 24,000, and furniture at Rs. 12,000. (2) The club had 720 members each paying an annual subscription of Rs. 100. (3) Salaries for December 2002 amounting to Rs. 1,600 are outstanding.
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(4) Half of the entrance fees are to be capitalized. (5) Stock of stationery on 31 December 2003 was Rs. 360 and on 31 s t December 2004 was Rs. 400.
Dr. Income and Expenditure account Cr. Expenditure Amount Rs. Income Amount Rs. To Salaries Add o/s salary 20,400 1,600 22,000 By Subscriptions Add o/s subs By Entrance fees 3,520 By Proceeds from drama To Postage and telegrams To Sundry expenses To surplus i.e. excess of income over expenditure 41,060 76,580 Balance Sheet As on 31st December 2004 Liabilities Salaries outstanding Subscription received in advance Capital fund Add entrance Fees Add surplus 41,060 1,75,960 1,33,560 1,340 Rs. 1,600 600 Assets Outstanding subscriptions Cash in hand Cash at bank Stock of stationery Investment Add purchases Furniture Add purchases Less old fur. Sold Club Premises 1,78,160 13,600 24,000 12,000 5,960 320 17,640 1,00,000 1,78,160 37,600 Rs. 7,200 3,320 12,000 400 4,400 5,600 Less cost of drama By interest from securities By profit on sale of furniture (400-320) 80 76,580 8,160 7,000 1,160 2,000 64,800 7,200 72,000 1,340
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1,47560
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