OMTEX CLASSES: Practical Problems | Q 9 | Page 119 Given below is the Receipts and Payments Account of “Vithai Mahila Mandal” Pandharpur for the year ending 31.03.2018

Practical Problems | Q 9 | Page 119

Given below is the Receipts and Payments Account of “Vithai Mahila Mandal” Pandharpur for the year ending 31.03.2018.

Prepare an Income and Expenditure Account for the year ended 31.03.2018 and Balance Sheet as on that date.

Receipts and Payments Account for the year ending 31.03.2018.

Receipts	Amount ₹	Amount ₹	Payments	Amount ₹	Amount ₹
To Balance b/d			By Stationery		6000
Cash in Hand	3,000		By Repairs to Furniture		950
Cash at Bank	20,000	23,000	By Rent		8,300
To Entrance Fees		3,500	By Salaries		15,000
To Subscription		19,000	By Miscellaneous Expenses		450
To Miscellaneous Receipts		850	By Balance c/d
			Cash in Hand	1,650
			Cash at Bank	14,000	15,650
		46,350			46,350

Adjustments :

1) Capital Fund on 01.04.2017 was ₹ 90,000

2) Outstanding Subscription ₹ 4,000

3) Entrance Fees are to be capitalized

4) Rent paid includes ₹ 800 paid for April 2018

5) They have the following Assets and Liabilities 01.04.2017

Furniture ₹ 9,000,

Building ₹ 70,000,

Outstanding Expenses ₹ 12,000

Solution:

In the books of Vithai Mahila Mandal, Pandharpur

Income and Expenditure Account for the year ended 31st March 2018

Expenditure	Amount ₹	Amount ₹	Income	Amount ₹	Amount ₹
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	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
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.

Book-keeping and Accountancy 12th Standard

HSC Maharashtra State Board. Latest Syllabus.

Chapter 1: Introduction to Partnership and Partnership Final Accounts

Chapter 2: Accounts of ‘Not for Profit’ Concerns

Chapter 3: Reconstitution of Partnership (Admission of Partner)

Chapter 4: Reconstitution of Partnership (Retirement of Partner)

Chapter 5: Reconstitution of Partnership (Death of Partner)

Chapter 6: Dissolution of Partnership Firm

Chapter 7: Bills of Exchange

Chapter 8: Company Accounts - Issue of Shares

Chapter 9: Analysis of Financial Statements