Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017
Receipt and Payment Account
for the year ending December 31, 2017
for the year ending December 31, 2017
Receipts | Amount (Rs.) | Payments | Amount (Rs.) |
Balance b/d | Charity | 11,500 | |
Cash in Hand | 11,500 | Rent and taxes | 3,200 |
Cash at Bank | 12,600 | Salary | 6,000 |
Donation | 9,000 | Printing | 600 |
Subscription | 42,800 | Postage | 300 |
Legacies | 18,000 | Advertisements | 4,500 |
Interest on investment | 4,500 | Insurances | 2,000 |
Sale of old newspapers | 200 | Furniture | 21,600 |
Investment | 23,000 | ||
Balance c/d: | |||
Cash in Hand | 9,900 | ||
Cash at Bank | 16,000 | ||
98,600 | 98,600 |
Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments:
(a) | It was decided to treat one-third of the amount received on account of donation as income. |
(b) | Insurance premium was paid in advance for three months. |
(c) | Interest on investment Rs1,100 accrued was not received. |
(d) | Rent Rs600: salary Rs900 and advertisement expenses Rs 1,000 outstanding as on December 31, 2007. |
Books of Delhi Charitable Trust
Income and Expenditure Account
as on Dec 31,2017
Income and Expenditure Account
as on Dec 31,2017
Expenditure | Amount (Rs.) | Income | Amount (Rs.) | ||
Insurance | 2,000 | Subscription | 42,800 | ||
Less:Prepaid [2,000X(3/15)] | (400) | 1,600 | Donation[9,000 x (1/3)] | 3,000 | |
Charity | 11,500 | Interest on Investment | 4,500 | ||
Rent and Taxes | 3,200 | Add:Accrued interest | 1,100 | 5,600 | |
Add:Outstanding | 600 | 3,800 | Subscription | 42,800 | |
Salary | 6,000 | Sale of old news paper | 200 | ||
Add:Outstanding | 900 | 6,900 | |||
Printing | 600 | ||||
Postage | 300 | ||||
Advertisements | 4,500 | ||||
Add:Outstanding | 1,000 | 5,500 | |||
Surplus (Balancing figure) | 21,400 | ||||
51,600 | 51,600 |
Balance Sheet
as on Dec 31,16
as on Dec 31,16
Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
Capital Fund (balancing figure) | 24,100 | Cash in hand | 11,500 |
Cash at Bank | 12,600 | ||
24,100 | 24,100 |
Balance Sheet
as on Dec 31,2017
as on Dec 31,2017
Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | ||
Capital fund | 24,100 | Prepaid Insurance | 400 | ||
Add:Donation [9,000x(2/3)] | 6,000 | Investment | 23,000 | ||
Add: Legacies | 18,000 | Add: Accrued Interest | 1,100 | 24,100 | |
Add: Surplus | 21,400 | 69,500 | Furniture | 21,600 | |
Outstanding Rent | 600 | Cash in hand | 9,900 | ||
Outstanding Salary | 900 | Cash at Bank | 16,000 | ||
Outstanding Advertisement Expenses | 1,000 | ||||
72,000 | 72,000 |
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