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From the following income and expenditure account and additional information of A TK club prepare receipts and payments account?
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From the following income and expenditure account and additional infor...
Income and Expenditure Account of A TK Club for the year ended 31st December 2020
Income
Subscriptions received - Rs. 1,20,000
Donations received - Rs. 50,000
Interest received - Rs. 8,000
Total Income - Rs. 1,78,000
Expenditure
Rent paid - Rs. 30,000
Electricity and water charges - Rs. 12,000
Salaries paid - Rs. 60,000
Printing and stationery - Rs. 5,000
Cost of refreshments - Rs. 18,000
Office equipment purchased - Rs. 25,000
Total Expenditure - Rs. 1,50,000
Additional Information
Outstanding rent as on 31st December 2020 - Rs. 5,000
Salaries due but not paid as on 31st December 2020 - Rs. 2,000
Donations received in advance but not earned as on 31st December 2020 - Rs. 10,000
Solution:
Receipts and Payments Account of A TK Club for the year ended 31st December 2020
Receipts
Subscriptions received - Rs. 1,20,000
Donations received - Rs. 50,000
Interest received - Rs. 8,000
Total Receipts - Rs. 1,78,000
Payments
Rent paid - Rs. 30,000
Electricity and water charges - Rs. 12,000
Salaries paid - Rs. 60,000
Printing and stationery - Rs. 5,000
Cost of refreshments - Rs. 18,000
Office equipment purchased - Rs. 25,000
Total Payments - Rs. 1,50,000
Outstanding Payments
Rent outstanding as on 31st December 2020 - Rs. 5,000
Salaries due but not paid as on 31st December 2020 - Rs. 2,000
Total Outstanding Payments - Rs. 7,000
Adjustments
Add: Donations received in advance but not earned as on 31st December 2020 - Rs. 10,000
Less: Rent outstanding as on 31st December 2020 - Rs. 5,000
Net Adjustments - Rs. 5,000
Closing Balance
Balance as on 31st December 2020 - Rs. 26,000 (Rs. 1,78,000 - Rs. 1,50,000 - Rs. 7,000 + Rs. 5,000)
Explanation:
The receipts and payments account is a summary of all cash transactions of the club during the year. It is based on the actual receipts and payments made during the year, unlike the income and expenditure account, which is based on accrual accounting.
The receipts and payments account for A TK Club for the year ended 31st December 2020 is prepared as follows:
Receipts:
The total receipts of the club during the year are Rs. 1,78,000. This includes subscriptions received, donations received, and interest received.
Payments:
The total payments made by the club during the year are Rs. 1,50,000. This includes rent paid, electricity and water charges, salaries paid,
Income
Subscriptions received - Rs. 1,20,000
Donations received - Rs. 50,000
Interest received - Rs. 8,000
Total Income - Rs. 1,78,000
Expenditure
Rent paid - Rs. 30,000
Electricity and water charges - Rs. 12,000
Salaries paid - Rs. 60,000
Printing and stationery - Rs. 5,000
Cost of refreshments - Rs. 18,000
Office equipment purchased - Rs. 25,000
Total Expenditure - Rs. 1,50,000
Additional Information
Outstanding rent as on 31st December 2020 - Rs. 5,000
Salaries due but not paid as on 31st December 2020 - Rs. 2,000
Donations received in advance but not earned as on 31st December 2020 - Rs. 10,000
Solution:
Receipts and Payments Account of A TK Club for the year ended 31st December 2020
Receipts
Subscriptions received - Rs. 1,20,000
Donations received - Rs. 50,000
Interest received - Rs. 8,000
Total Receipts - Rs. 1,78,000
Payments
Rent paid - Rs. 30,000
Electricity and water charges - Rs. 12,000
Salaries paid - Rs. 60,000
Printing and stationery - Rs. 5,000
Cost of refreshments - Rs. 18,000
Office equipment purchased - Rs. 25,000
Total Payments - Rs. 1,50,000
Outstanding Payments
Rent outstanding as on 31st December 2020 - Rs. 5,000
Salaries due but not paid as on 31st December 2020 - Rs. 2,000
Total Outstanding Payments - Rs. 7,000
Adjustments
Add: Donations received in advance but not earned as on 31st December 2020 - Rs. 10,000
Less: Rent outstanding as on 31st December 2020 - Rs. 5,000
Net Adjustments - Rs. 5,000
Closing Balance
Balance as on 31st December 2020 - Rs. 26,000 (Rs. 1,78,000 - Rs. 1,50,000 - Rs. 7,000 + Rs. 5,000)
Explanation:
The receipts and payments account is a summary of all cash transactions of the club during the year. It is based on the actual receipts and payments made during the year, unlike the income and expenditure account, which is based on accrual accounting.
The receipts and payments account for A TK Club for the year ended 31st December 2020 is prepared as follows:
Receipts:
The total receipts of the club during the year are Rs. 1,78,000. This includes subscriptions received, donations received, and interest received.
Payments:
The total payments made by the club during the year are Rs. 1,50,000. This includes rent paid, electricity and water charges, salaries paid,
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From the following income and expenditure account and additional information of A TK club prepare receipts and payments account?
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From the following income and expenditure account and additional information of A TK club prepare receipts and payments account? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about From the following income and expenditure account and additional information of A TK club prepare receipts and payments account? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following income and expenditure account and additional information of A TK club prepare receipts and payments account?.
From the following income and expenditure account and additional information of A TK club prepare receipts and payments account? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about From the following income and expenditure account and additional information of A TK club prepare receipts and payments account? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following income and expenditure account and additional information of A TK club prepare receipts and payments account?.
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