### Following is the Balance Sheet as on 1.4.2012 and receipts and payments account of Mahakavi Kalidas Library, Nashik.

Following is the Balance Sheet as on 1.4.2012 and receipts and payments account of Mahakavi Kalidas Library, Nashik.

Solution: In the books of Mahakavi Kalidas Library, Nashik

Income and Expenditure Account for the year ended 31.3.2013

 Expenditure Amount Amount Payments Amount Amount To Electricity Charges 6980 By Members Subscription 180000 To Postage and Telegram 6100 Add: Outstanding Subscription 7500 To Sundry Expenses 10500 Less: Pre - received Subscription 15000 172500 To Depreciation: By Entrance Fees 25000 Furniture 8650 Less: Capitalised 12500 12500 Books 100000 108650 By Sale of Old Newspapers 1500 By Hire of lecture hall 18000 By Interest on securities 4000 To Income Over Expenditure [Surplus] 76270 208500 208500

Balance Sheet of Mahakavi Kalidas Library as on 31.3.2013

 Liabilities Amount Amount Assets Amount Amount Capital Fund 690000 Furniture 72500 Add: Entrance Fees 12500 Add: Purchased 28000 Add: Surplus 76270 778770 100500 Pre - received Subscription 15000 Less: Depreciation 8650 91850 Books 551000 Add: Purchased 80000 631000 Less: Depreciation 100000 531000 Investment in securities 50000 Add: Purchased 100000 150000 Cash inHand 6420 Cash at Bank 7000 Outstanding Subscription 7500 793770 793770

1. How come the Depreciation on Furniture is 8650? I got it 5025. I calculated it as- 100500×10/100×6/12.

1. Depreciation is to be calculated on 72,500 @10% for complete year and which comes to 7250. And on according to the adjustment given in the problem it says that 10% depreciation should be charged for 6 months as it was purchased on 1 october on rs 28000 which comes rs.1400 and therefore total amount of depreciation on furniture is 7250+1400=8650.

2. It is correct calculate it as 2800×10/100×6/12 then of previous 72500×10/100 add both you will get

3. Plz tell me where is payment of expens due gone??

1. It has been paid as you can see on payment side

2. It is canled bcz it is give in liability side also and in payment side also

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5. From where did interest on investments come??

1. it's in posting

6. Where is expense due?

1. Expense due is paid of the last year in current year...so we can ignore that amount

7. Furniture 72500*10/100=7250
additional furniture ...purchased on 1 oct 2012
28000*6/12*10/100=1400
So,7250+1400 = 8650.

8. Thanks yarrrrr...

9. Thanks