The Recipt and Payment Account of Harimohan charitable institution is given:
Recipt and Payment Account
for the year ending March 31,2015
for the year ending March 31,2015
| Receipts | Amount | Payments | Amount |
| Opening balance: | Furniture | 3,000 | |
| cash in hand | 22,000 | Investment | 55,000 |
| cash at bank | 8,800 | Advanced for building | 20,000 |
| Donation | 32,000 | Charities | 60,000 |
| subscription | 50,200 | Salaries | 10,400 |
| Endowment fund | 60,000 | Rent and Taxes | 4,000 |
| Legacies | 24,000 | Printing | 1,000 |
| Interest on Investment | 3,800 | Postage | 300 |
| Interest on Deposits | 800 | Advertisements | 1,100 |
| Sale of old newspapers | 500 | Insurance | 4,800 |
| Balance c/d: | |||
| cash in hand | 32,000 | ||
| cash at bank | 10,500 | ||
| 2,02,100 | 2,02,100 | ||
Prepare the Income and Expenditure Account for the Year ended on March 31, 2015 after considering the following:
(i) It was decided to treat 50%.of the amount received on account of Legacies and Donations as Income.
(ii) Liabilities to be provided for are: Rent Rs. 800; Salaries Rs. 1,200; advertisement Rs. 200.
(iii) Rs. 2,000 due for interest on Investment was not actually received
Books of Harimohan Charitable Institution
Income and Expenditure Account
Income and Expenditure Account
| Expenditure | Amount | Income | Amount |
| Rent and Taxes 4,000 | Donations | 16,000 | |
| Add: Outstanding 800 | 4,800 | Legacies | 12,00 |
| Salaries 10,400 | Subscriptions | 50,200 | |
| Add: Outstanding 1,200 | 11,600 | Interest on Investment 3,800 | |
| Advertisement 1,100 | Add: Accrued Interest 2,000 | 5,800 | |
| Add: Outstanding 200 | 1,300 | Interest on Deposits | 800 |
| Charities | 60,000 | Sale of Old Newspapers | 500 |
| Printing | 1,000 | ||
| Postage | 300 | ||
| Insurance | 4,800 | ||
| 85,300 | 85,300 | ||
NOTE: As per the solution, Excess of Income over Expenditure is Rs 1,500; however, as per the book, it is Rs 2,500.
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