Practical Problem 12
SOLUTION:
In the books of Dhananjay Library, Mumbai
Income and Expenditure Account for the year ended 31st March 2020 | |||||
Expenditure | Amt ₹ | Amt ₹ | Income | Amt ₹ | Amt ₹ |
To Salaries | 9,000 | By Subscription | 20,000 | ||
Add: Outstanding Salary | 1,300 | 10,300 | Less: Subscription Received in Advance | 500 | 19,500 |
To Rent | 7,500 | By Admission Fees | 4,500 | ||
Add: Outstanding Rent | 950 | 8,450 | Less: 50% Capitalised | 2,250 | 2,250 |
To Stationery | 1,350 | By Lecture Hall Hire Charges | 4,200 | ||
To Electricity Charges | 850 | By Miscellaneous Income | 250 | ||
To Depreciation | By Interest on Investments | 900 | |||
Furniture | 650 | Add: Outstanding Interest | 300 | 1,200 | |
Library Books (5000 + 500) | 5,500 | 6,150 | |||
To Surplus (Excess of Income over expenditure) | 300 | ||||
27400 | 27400 | ||||
Balance Sheet as on 31st March 2020 | |||||
Liabilities | Amt ₹ | Amt ₹ | Assets | Amt ₹ | Amt ₹ |
Capital Fund | 91,000 | Machinery | 30,000 | ||
Add : 50 % Admission | 2,250 | Books | 50,000 | ||
Add: Surplus | 300 | 93,550 | Add: Purchases | 5,000 | |
Outstanding Salaries | 1,300 | 55,000 | |||
Outstanding Rent | 950 | Less: Depreciation (5000 + 500) | 5,500 | 49,500 | |
Subscription Received in Advance | 500 | Furniture | 6,500 | ||
Less: Depreciation | 650 | 5,850 | |||
Investments | 6,000 | ||||
Add: Outstanding Interest | 300 | 6,300 | |||
Cash in Hand | 4,650 | ||||
96300 | 96300 | ||||
Working Notes :
(1) Opening Balance Sheet is prepared to find out opening capital fund :