Practical Problem 05
Practical Problems | Q 5 | Page 117
“Bhartiya Kala Kendra”, Solapur gives you the following information, for the year ended on 31.03.2018 Prepare Income and Expenditure Account for the year ending 31.03.2018
Receipts and payments Account for the year ending 31.03.2018. | |||
Receipts | Amount ₹ | Payments | Amount ₹ |
To Balance b/d | By Stationery | 600 | |
Cash in Hand | 200 | By Furniture Purchased | 7,000 |
Cash at Bank | 12,500 | By Investments in govt securities | 14,000 |
To Locker Rent | 400 | By Expenses of Drama | 3,000 |
To Entrance fees | 2,900 | By Postage | 450 |
To Sale of old newspapers | 250 | By Magazine and newspaper | 600 |
To Receipts from Drama | 9,000 | By Salaries | 4,400 |
To Legacies | 12,000 | By Balance c/d | |
To Interest of Govt. Securities | 400 | Cash in Hand | 700 |
To Miscellaneous Receipts | 400 | Cash at Bank | 7,300 |
38050 | 38050 | ||
Additional Information:
1) Legacies are to be capitalized
2) Outstanding Salary ₹ 200
3) 50 % of Entrance Fees are to be capitalised
SOLUTION:
In the books of Bhartiya Kala Kendra, Solapur
Income and Expenditure Account for the year ended 31st March | |||||
Expenditure | Amt (₹) | Amt (₹) | Income | Amt (₹) | Amt (₹) |
To Stationery | 600 | By Locker rent | 400 | ||
To Expenses of Drama | 3,000 | By Entrance Fees | 2,900 | ||
To Postage | 450 | Less: 50 % Capitalised | 1,450 | 1,450 | |
To Magazine and Newspaper | 600 | By Sale of Old Newspapers | 250 | ||
To Salaries | 4,400 | By receipts from Drama | 9,000 | ||
Add: Outstanding Salaries | 200 | 4,600 | By Interest on Govt. Securities | 400 | |
To Surplus (Excess of income over expenditure) | 2,650 | By Miscellaneous receipts | 400 | ||
11900 | 11900 | ||||