Following is the Receipt and Payment Account of Women’s Welfare Club for the year ended December 31, 2013:
| Receipt and Payment Account for the year ending December 31, 2013 | |||
| Receipts | Amount Rs | Payments | Amount Rs |
| Balance b/d | 7,250 | Salary | 12,500 |
| Subscriptions | 81,750 | Stationery | 1,700 |
| Donations | 3,000 | Electricity charges | 9,550 |
| Grant from Government | 15,000 | Insurance | 7,500 |
| Sale of newspapers | 300 | Equipments | 30,000 |
| Proceeds of charity show | 16,500 | Petty expenses | 500 |
| Interest on investments @ 10% for full year | 7,000 | Expenses on charity show | 12,900 |
| Sundries income | 400 | Newspapers | 1,000 |
|
|
| Lectures fee | 16,500 |
|
|
| Honorarium to Secretary | 12,000 |
|
|
| Balance c/d | 27,050 |
|
| 1,31,200 |
| 1,31,200 |
|
|
|
|
|
Additional Information:
|
| 01.01.2013 Rs | 31.12.2013 Rs |
| Outstanding salaries | 1,200 | 1,800 |
| Insurance prepaid | 700 | 300 |
| Subscription outstanding | 3,750 | 2,500 |
| Subscription received in advanced | 1,750 | 1,000 |
| Electricity charges outstanding | — | 1,250 |
| Stock of stationery | 2,250 | 700 |
| Equipments | 25,600 | 50,200 |
| Building | 1,20,000 | 1,14,000 |
Prepare Income and Expenditure Account for the year ended December 31, 2013 and Balance Sheet as on that date.
| Books of Women Welfare Club Income and Expenditure Account as on December 31, 2013 | |||||
| Dr. |
|
| Cr. | ||
| Expenditure | Amount Rs | Income | Amount Rs | ||
| Salary | 12,500 |
| Subscriptions | 81,750 |
|
| Add: O/s on Dec. 31, 2013 | 1,800 |
| Add: O/s on Dec. 31, 2013 | 2,500 |
|
| 14,300 |
| 84,250 |
| ||
| Less: O/s on Dec. 31, 2012 | (1,200) | 13,100 | Less: O/s on Dec. 31, 2012 | (3,750) |
|
|
|
| 80,500 |
| ||
| Stationery | 1,700 |
| Add: Advance on Dec. 31, 2012 | 1,750 |
|
| Add: Opening Stock | 2,250 |
| 82,250 |
| |
| 3,950 |
| Less: Advance on Dec.31, 2013 | (1,000) | 81,250 | |
| Less: Closing Stock | (700) | 3,250 |
|
| |
|
|
| Donations | 3,000 | ||
| Electric Charges | 9,550 |
| Grant from Government | 15,000 | |
| Add: O/s on Dec. 31, 2013 | 1,250 | 10,800 | Sale of Newspapers | 300 | |
|
|
| Profit from Charity show (16,500–12,900) | 3,600 | ||
| Insurance | 7,500 |
| Interest on Investments | 7,000 | |
| Add: Prepaid in 2012 | 700 |
| Sundries Income | 400 | |
| 8,200 |
|
|
| ||
| Less: Prepaid in 2013 | (300) | 7,900 |
|
| |
| Depreciation on Equipments | 5,400 |
|
| ||
| Petty Expenses | 500 |
|
| ||
| Newspapers | 1,000 |
|
| ||
| Lectures Fee | 16,500 |
|
| ||
| Honorarium to Secretary | 12,000 |
|
| ||
| Depreciation on Building | 6,000 |
|
| ||
| Surplus (Balancing Figure) | 34,100 |
|
| ||
|
|
|
|
| ||
|
| 1,10,550 |
| 1,10,550 | ||
|
|
|
|
| ||
| Balance Sheet as on December 31, 2012 | |||
| Liabilities | Amount Rs | Assets | Amount Rs |
| Outstanding Salaries | 1,200 | Insurance Prepaid | 700 |
| Subscription in Advance | 1,750 | Subscription Outstanding | 3,750 |
|
|
| Stock of Stationery | 2,250 |
| Capital Fund (Balancing Figure) | 2,26,600 | Equipments | 25,600 |
|
|
| Building | 1,20,000 |
|
|
| Cash and Bank | 7,250 |
|
|
| Investments {7,000 × (100/10)} | 70,000 |
|
|
|
|
|
|
| 2,29,550 |
| 2,29,550 |
|
|
|
|
|
| Balance Sheet as on December 31, 2013 | |||||
| Liabilities | Amount Rs | Assets | Amount Rs | ||
| Outstanding Salaries | 1,800 | Equipments | 25,600 |
| |
| Subscription in Advance | 1,000 | Add: Purchases | 30,000 |
| |
| Electricity Charges Outstanding | 1,250 | 55,600 |
| ||
| Capital Fund | 2,26,600 |
| Less: Depreciation | (5,400) | 50,200 |
| Add: Surplus | 34,100 | 2,60,700 |
|
| |
|
|
| Insurance Prepaid | 300 | ||
|
|
| Subscription Outstanding | 2,500 | ||
|
|
| Stock of Stationery |
| 700 | |
|
|
| Building | 1,20,000 |
| |
|
|
| Less: Depreciation | (6,000) | 1,14,000 | |
|
|
|
|
| ||
|
|
| Cash and Bank | 27,050 | ||
|
|
| Investments | 70,000 | ||
|
| 2,64,750 |
| 2,64,750 | ||
|
|
|
|
| ||
NOTE: As per the solution, the Surplus is Rs 34,100 and the Total of Balance Sheet is Rs 2,64,750; however, the answer given in the book are Rs 79,700 and Rs 1,23,800 respectively.