MENU
Question -

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

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 Rs1,000 outstanding as on December 31, 2017.



Answer -

Books of Delhi Charitable Trust

Income and Expenditure Account 

as on December 31, 2017

Dr.

Cr.

Expenditure

Amount

 Rs

Income

Amount

 Rs

Insurance

2,000

 

Donation {9,000 × (1/3)}

3,000

Less: Prepaid {2,000 × (3/15)}

(400)

1,600

Interest on Investments

4,500

 

 

 

Add: Accrued Interest

1,100

5,600

Charity

11,500

 

 

Rent and Taxes

3,200

 

Subscription

42,800

Add: Outstanding

600

3,800

Sale of Old Newspapers

200

 

 

 

 

Salary

6,000

 

 

 

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 December 31, 2016

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 December 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital Fund

24,100

 

Prepaid Insurance {2,000 × (3/15)}

400

Add: Donation {9,000 × (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

Rent Outstanding

600

Cash in Hand

9,900

Salary Outstanding

900

Cash at Bank

16,000

Advertisement Expenses Outstanding

1,000

 

 

 

72,000

 

72,000

 

 

 

 

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
NodeJS Interview Questions Answers
ASP.Net Interview Questions Answers
Interview Questions Answers
×