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, 2006.
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Receipt and Payment Account for the year ending as on December 31, 2006 |
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Receipts |
Amount Rs |
Payments |
Amount Rs |
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Balance b/d |
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General Expenses |
3,200 |
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Cash in hand |
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4,000 |
News paper |
1,850 |
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Cash at Bank |
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15,550 |
Electricity |
3,000 |
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Subscriptions |
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Fixed deposit with bank (on 31.06.2006) @ 10% p.a. |
18,000 |
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2005 |
1,200 |
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2006 |
26,500 |
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Books |
7,000 |
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2007 |
500 |
28,200 |
Salary |
3,600 |
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Sale of old newspapers |
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1,250 |
Rent |
6,500 |
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Govt. grant |
|
12,000 |
Postage charges |
300 |
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Sale of old furniture (book value Rs5000) |
|
3,700 |
Furniture (purchased) |
10,500 |
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Interest received on FD |
|
450 |
Balance c/d |
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Cash in Hand |
3,000 |
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Cash at Bank |
8,200 |
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65,150 |
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65,150 |
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Information:
(i) Subscription outstanding as on 31.12.2005 Rs 2,000 and on December 31, 2006 Rs 1,500.
(ii) On December 31, 2006 Salary outstanding Rs 600, and one month Rent paid in advance.
(iii) On Jan. 01, 2005 organisation owned Furniture Rs 12,000, Books Rs 5,000.
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Books of Adult Literacy Organisation Income and Expenditure Account as on Dec. 31, 2006 |
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Dr. |
Cr. |
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Expenditure |
Amount Rs |
Income |
Amount Rs |
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Loss on Sale of Old Furniture |
1,300 |
Subscription |
26,500 |
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General Expenses |
3,200 |
Add: Outstanding for 2006 |
1,500 |
28,000 |
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Newspapers |
1,850 |
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Electricity |
|
3,000 |
Sale of Old Newspapers |
1,250 |
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Salary |
3,600 |
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Government Grant |
12,000 |
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Add: Outstanding for 2006 |
600 |
4,200 |
Interest received on F.D. |
450 |
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Add: Accrued Interest |
450 |
900 |
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Rent |
6,500 |
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Less: Prepaid for 2007 {6,500×(1/13)} |
(500) |
6,000 |
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Postages Charges |
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300 |
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Surplus (Excess of Income over Expenditure) |
22,300 |
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42,150 |
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42,150 |
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Balance Sheet as on Dec. 31, 2005 |
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Liabilities |
Amount Rs |
Assets |
Amount Rs |
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Capital Fund on Dec. 31, 2005 (Balancing Figure) |
38,550 |
Subscription Outstanding |
2,000 |
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Cash in Hand |
4,000 |
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Cash at Bank |
15,550 |
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Furniture |
12,000 |
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Books |
5,000 |
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38,550 |
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38,550 |
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Balance Sheet as on Dec. 31, 2006 |
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Liabilities |
Amount Rs |
Assets |
Amount Rs |
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Capital |
38,550 |
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Prepaid Rent |
500 |
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Add: Surplus |
22,300 |
60,850 |
Books |
5,000 |
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Add: Purchases |
7,000 |
12,000 |
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Salary Outstanding |
600 |
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Subscription Received in Advance for 2007 |
500 |
Furniture |
12,000 |
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Add: Purchases |
10,500 |
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22,500 |
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Less: Sale |
(5,000) |
17,500 |
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Fixed Deposit |
18,000 |
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Add: Accrued Interest |
450 |
18,450 |
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Cash in Hand |
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3,000 |
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Cash at Bank |
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8,200 |
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Subscription Outstanding for 2006 |
1,500 |
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Add: Outstanding for 2005 |
800 |
2,300 |
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61,950 |
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61,950 |
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NOTE: In order to match the answer with the book, Adjustment (i) - Subscription outstanding on 31.12.2005 Rs 2,000 has been taken as Subscription outstanding for 31.12.2005 Rs 2,000 and Subscription outstanding on December 31, 2006 Rs 1,500 has been taken as Subscription outstanding for December 31, 2006 Rs 1,500.