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Q.1. From the following particulars taken from the Cash Book of a health club, prepare a Receipts and Payments Account.
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Q.2. The Receipt and Payment Account of Harimohan charitable institution is given:
Receipt and Payment Account for the year ending March 31, 2015
Prepare the Income and Expenditure Account for the Year ended on March 31, 2007 after considering the following:
(i) It was decided to treat Fifty per cent of the amount received on account of Legacies and Donations as income.
(ii) Liabilities to be provided for are:
Rent Rs 800; Salaries Rs 1,200; advertisement Rs 200.
(iii) Rs 2,000 due for interest on investment was not actually received.
NOTE: As per the solution, Excess of Income over Expenditure is Rs 1,500; however, as per the book, it is Rs 2,500.
Q.3. From the following particulars, prepare Income and Expenditure account:
From the following particulars, prepare Income and Expenditure account:
NOTE: As per the solution, Excess of Income over Expenditure is Rs 3,23,000; however, as per the book, it is Rs 3,07,000.
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Q.4. Following is the information given in respect of certain items of a Sports Club. Show these items in the Income and Expenditure Account and the Balance Sheet of the Club:
Q.5. How will you deal with the following items while preparing for the Bombay Women Cricket Club its income and expenditure account for the year ending 31.3.2017 and its Balance Sheet as on 31.3.2017:
Give reasons for your answers
Donation for construction of Pavilion is a donation for specific purpose.
Expenses on construction on Pavilion is a capital expenditure.
All funds received are treated as capital receipts and expenses related to any fund are deduced from the concerned funds.
Life Membership Fees are considered as capital receipts and are shown on the Liabilities side of the Balance Sheet, if nothing is specified about its treatment. But if it is to be treated as revenue item, then it is shown on the credit side of the Income and Expenditure Account.
Q.6. From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2013.
(i) Subscription outstanding as on 31.12.2016 Rs 2,000 and on December 31, 2017 Rs 1,500.
(ii) On December 31, 2017 Salary outstanding Rs 600, and one month Rent paid in advance.
(iii) On Jan. 01, 2016 organisation owned Furniture Rs 12,000, Books Rs 5,000.
Books of Adult Literacy Organisation
Income and Expenditure Account
as on Dec. 31, 2017
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Q.7. The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017:
You are required to prepare an Income and Expenditure Account after the following adjustments:
(a) Subscription still to be received are Rs 750, but subscription include Rs 500 for the year 2018.
(b) In the beginning of the year the Sangh owned building Rs 20,000 and furniture Rs 3,000 and Books Rs 2,000.
(c) Provide depreciation on furniture @ 5% (including purchase), books @ 10% and building @ 5%.