Question 1
From the following Receipt & Payment Account of western gymkhana has for the
year ended 31st December, 2007 and other information, prepare Income & Expenditure
account for the Year ended on and a Balance Sheet as at that date.
Receipts & Payments A/c
for the year ended 31st , December 2007
Receipts Amt. Payments Amt.
Rs. Rs.
To Balance b/f 1,040 By salaries 1,300
To Subscription for: By Entertainment Expanses 645
2006 85 By Electric Charges 234
2007 4,000 By General Expanses 350
2008 103 By Rates and taxes 120
To Donation 1,200 By Investment 3,000
To Entertainment Receipts 876 By Stationary and printing 241
To Interest 81 By expenses of 2006 600
To Entrance Fees 1,000 By Fixed Deposit 1,000
- By balance c/f 895
8,385 8,385
The gymkhana has 450 members paying an annual subscription of Rs. 10 each.
Rs. 20 is still in arrears towards subscription for the year 2006. Carry forward Rs. 20 for
each rates paid in advance. Provided Rs. 200 for salaries outstanding. The Gymkhana
owns land & standing in the books of Rs. 15,000 and furniture standing at Rs. 1,150; on
which depreciation at 5% and 15% respectively is to be written off. Interest for 3 months
at 12% p.a. is accrued on Investment. The Capital fund as on 1st January, 2006 was Rs.
16,695. 50% of the entrance fees are to be capitalized. Donations are capitalized.
Question 2
From the following Receipt & Payment Account for the year ended 30th June, 2007;
prepare Income & Expenditure Account after taking into consideration the following
information:
a) Treat 75% of Donation and 60% legacies as Capital Receipts.
b) Book Value of Furniture sold was Rs. 1,200.
c) Salaries paid in advance as on 30th June, 2007 were Rs. 900.
d) Rent & Taxes were unpaid Rs. 200 at the end of the year.
e) Furniture was sold on 30th June, 2007. Depreciate Furniture @ 15% p.a.
Receipts & Payments A/c
for the year ended 30th, June 2007
Receipts Amt. Payments Amt.
Rs. Rs.
To Balance b/d By Advertisements 2,400
Cash in Hand By Rent & Taxes 4,600
150 By Purchase of Furniture 15,000
Cash in By Charity 8,400
Deposit A/c By Investment 2,000
2,500 10,000 By salaries 4,900
Cash in Bank 20,000 By Postage 600
???? 5,000 By printing 500
To Donation 1,200 By balance c/d
To Subscription 2,400 Cash in Hand
To legacies 200
To Interest on Invest 42,400 Cash in
To sales of Furniture Deposit A/c
???? 42,400
Cash in Bank
1,300
Question 3
From the following Receipt & Payment Account of Bajarang Vyayam Shala,
Amravati; and the adjustment given, you are required to prepare Income & Expenditure
Account and a Balance Sheet.
Receipts & Payments A/c
for the year ended 31st March, 2007
Receipts Amt. Payments Amt.
Rs. Rs.
To Balance b/d 4,160 By Salaries 5,500
To Subscription By Entertainment Expenses 2,580
2007 By Lighting 1,000
16,000 16,412 By general Expenses 1,536
2008 5,000 By Taxes 500
412 By Investments 12,000
To Donation 3,644 By Printing & Stationery 944
To Receipts from 324 By Expenses of 2006 pain 2,400
Entertainment 4,500 By Fixed Deposit 4,000
To Interest - By Balance c/d 3,580
To Entrance Fee 34,040 34,040
Adjustment:
1) There are 450 members paying an annual subscription of Rs. 40 each.
2) Salary outstanding was Rs. 1,000.
3) Land & Building stood in the book at Rs. 60,000 and Furniture at Rs. 4,600 ant it is
required to write
off depreciation at 2% and 10% respectively.
4) Interest on Investment at 5% p.a. has accrued for 3 months.
5) The Capital fund was Rs. 66,030 on 1st January, 2007.
6) 50% of the Entrance Fee is to be capitalized.
Question 4
From the following Receipt & Payment Account of a Charitable Institute, and other
additional information supplied to you, prepare an Income & Expenditure Account for the
year ended 31st December, 2008.
Receipts & Payments A/c
for the year ended 31st, December 2008
Receipts Amt. Payments Amt.
Rs. Rs.
2008 To Balance b/d 2008 By Charities 8,500
Jan. Cash I Hand 150 Dec. By Salaries 2,500
1 Cash in Deposit A/c 2,500 31 By Rent and Taxes 1,300
Cash in Current A/c 1,200 By printing & Stationery 400
To Donation 4,000 By Postage 150
Dec. To Subscription 2,000 By advertisement 350
31 To Endowment Fund 16,000 By Purchase of Furniture 850
Receipts 8,000 By Investment 16,000
To Legacies 8,000 By Advance against
To Interest on Investment 200 contract for- Extension of 2,500
To Interest on Deposit 50 premises
To Sale of Old Furniture 34,040 By Balance c/d 1,050
Cash I Hand 6,000
Cash in Deposit A/c 2,500
Cash in Current A/c 34,040
Question 5
The following is an Receipt & Payment Account of Pensioners’ Association for the year
ending 31st March, 2008:
Receipts & Payments A/c
for the year ended 31st March 2008
Receipts Amt. Payments Amt.
Rs. Rs.
To Balance 1.4.2008 1,500 By Travelling Expenses 2,000
To Entrance fees 375 By Stationery 1,500
To Subscription: By Salaries 3,700
2005-06 200 By Wages 8,000
2006-07 15,000 By Repair 1,250
2007-08 700 By Interest 470
To Special Subscription for By balance 31.03.2008 4,105
chairman’s party 3,250
21,025 21,025
Stationery expenses include Rs. 300 for the year 2006-07
Similarly, salary for the month of March 2008 Rs. 700 is not yet paid. Subscription
unpaid for the current year is Rs. 300 Special subscription or the chairman’s Party Rs.
100 is yet outstanding.
From above information, you are requested to make out an Income & Expenditure
Account of the Association for the year ending 31sd March, 2008.
Question 6
From the following Receipt & Payment A/c of Vikas Club and the adjustment given,
you are required to prepare Income & Expenditure Account and a balance Sheet.
Receipts & Payments A/c
for the year ended 31st March 2006
Receipts Rs. Payments Rs.
To Balance b/d 14,160 By Salaries 5,500
To Subscription: By Entertainment Expenses 2,580
2005 By Lighting 1,000
16,000 16,412 By General Expenses 1,536
2006 5,000 By Taxes 500
412 3,644 By Investment 12,000
To Donation 324 By Printing & Stationery 944
To Receipt from Entertainment 4,500 By Expenses 2,400
To Interest 44,040 By Fixed Deposit 14,000
To Entrance Fee By Balance c/d 3,580
44,040
Adjustment:
(a) There are 400 members paying an annual subscription of Rs. 50/- each.
(b) Salary outstanding was Rs. 1,000/-
(c) Land & Building stood in the books at Rs. 60,000/- and Furniture at Rs. 4,600 on
1.4.2005 and it is required to write off depreciation at 2% and 10% respectively.
(d) The Capital Fund was Rs. 78,760 on a 1st April, 2005.
(e) Entrance fee to be Capitalised.
Question 7
From the following Receipt & Payment A/c of Vijay Library for the year ending 31.3.2008.
Receipts Rs. Payments Rs.
To Balance b/d 4,500 By Salaries & Wages 6,800
To Admission Fees 3,500 By Rent 8,250
To Subscription 19,500 By Investment 3,500
To Lecture Hall Hire Charges 2,500 By Stationery 1,250
To Miscellaneous Income 350 By Electric Charges 730
To Interest on Investment 600 By Book 6,000
30,950 By Outstanding Exp. (2003- 700
04) 3,720
By Balance c/d 30,950
You are required to prepare an Income & Expenditure Account for the year ended
31.3.2006, and a Balance Sheet as at 31.3.2006. The following further information is also
made available to you.
(a) On 31.3.2005, the library had the following assets also:
Furniture Rs.5,500, Books valued at Rs.45000and land at a cost of Rs.20,000
(b) Subscription realized un advance this year amounted to Rs.600 and outstanding
liabilities on 31.3.2006 for salaries and wages Rs.1,200 and for rent Rs.750
(c) 60%of the admission fees should be capitalized
(d) Furniture and library books are to be deprecated at 6% & 10% p.a. respectively
(e) The investments were purchased on 1.4.2005 and they carry interest of 20% p.a.
Question- 8
Following is the receipts and payments account of a club for the year ended 31.3.2006.
Receipts Rs. Payments Rs.
Balance b/d Salaries : 11,000
Cash Canteen Expenses 12,000
2,000 14,000 Miscellaneous of Building 2,500
Bank 6,400 Construction of Building 15,000
12,000 1,000 Balance c/d:
Subscription 2,400 Cash
Interest from Bank 12,000 1,300 5,300
Sale proceeds of old news 10,000 Bank 30,950
paper 30,950 4,000
Canteen Collections
Donation for Building Fund
With the additional information given below, prepare the Income & Expenditure
Account for the year ended 31.3.2006 and the balance Sheet as on that Date.
31.3.2005 31.3.2006
(a Subscription Receivable 1,000 600
)
(b Subscription Received in Advance 200 400
)
(c Salary of Staff outstanding 1,000 2,000
)
(d Misc. Expenses Prepaid 1,000 1,500
)
(e Furniture at book Bank 14,000 ?
)
(f) Building 15,000 ?
(g Fixed Deposit with Bank 10,000 10,000
)
(h Charge depreciation on Furniture at 10% p.a. on the Closing
) Balance.
