Practical Problem 09
SOLUTION:
In the books of Vithai Mahila Mandal, Pandharpur
Income and Expenditure Account for the year ended 31st March 2018 | |||||
Expenditure | Amt ₹ | Amt ₹ | Income | Amt ₹ | Amt ₹ |
To Stationery | 6,000 | By Subscription | 19,000 | ||
To Repairs to Furniture | 950 | Add: Outstanding Subscription | 4,000 | 23,000 | |
To Rent | 8,300 | By Miscellaneous receipts | 850 | ||
Less: Prepaid Rent | 800 | 7,500 | By Deficit (Excess of expenses over incomes) | 6,050 | |
To Salaries | 15,000 | ||||
To Miscellaneous Expense | 450 | ||||
29,900 | 29,900 | ||||
Balance Sheet as on 31st March 2018 | |||||
Liabilities | Amt ₹ | Amt ₹ | Assets | Amt ₹ | Amt ₹ |
Capital Fund | 90,000 | Furniture | 9,000 | ||
Add: Entrance Fees (Capitalised) | 3,500 | Building | 70,000 | ||
Less: Deficit | 6,050 | 87,450 | Outstanding Subscription | 4,000 | |
Outstanding Expenses | 12,000 | Cash in Hand | 1,650 | ||
Cash at Bank | 14,000 | ||||
Prepaid rent | 800 | ||||
99,450 | 99,450 | ||||
Working Notes :
(1) Outstanding subscription of ₹ 4,000 is first added to subscription received on the credit side of Income and Expenditure A/c and then it is shown on the Assets side of the Balance Sheet.
(2) The entire amount of the entrance fees ₹ 3,500 is added to the capital fund.
(3) Prepaid ₹ 800 is first deducted from rent paid on the debit side of Income & Expenditure A/c and then shown on the Assets side of the Balance Sheet.
(4) Outstanding expenses ₹ 12,000 is directly shown on the Liabilities side of the Balance Sheet.