Practical Problem 08
SOLUTION:
In the books of Jeevan Jyoti Art Circle
Income and Expenditure Account for the year ended 31st March 2018 | |||||
Expenditure | Amt ₹ | Amt ₹ | Income | Amt ₹ | Amt ₹ |
To Stationery | 4,000 | By Donations | 18,000 | ||
To Office rent | 2,600 | Less: 50 % Capitalised | 9,000 | 9,000 | |
To Newspapers and Periodicals | 300 | By Subscription | 40,000 | ||
To Telephone Expenses | 560 | Add: Outstanding of Current Year | 5,000 | 45,000 | |
To Depreciation Furniture | 1,200 | ||||
To Surplus (Excess of income over expenditure) | 45,340 | ||||
54000 | 54000 | ||||
Balance Sheet as on 31st March, 2018 | |||||
Liabilities | Amt ₹ | Amt ₹ | Assets | Amt ₹ | Amt ₹ |
Capital Fund | – | Furniture | 12,000 | ||
Add: Surplus | 45,340 | Less: Depreciation | 1,200 | 10,800 | |
Add: Admission Fees (Capitalised) | 22,000 | Investments | 23,000 | ||
Add: Donations (50 % Capitalised) | 9,000 | 76,340 | Cash in Hand | 7,540 | |
Cash at Bank | 30,000 | ||||
Outstanding Subscription | 5,000 | ||||
76,340 | 76,340 | ||||
Working Notes:
The full amount of admission fees and 50% of donations are added to the surplus amount to get the capital funds. (Opening balance of the capital fund is not given.)