OMTEX CLASSES: Practical Problems | Q 8 | Page 119 “Jeevan Jyoti Art Circle” a newly established concern has presented the following information.

Practical Problems | Q 8 | Page 119

“Jeevan Jyoti Art Circle” a newly established concern has presented the following information.

Receipts and Payments Account for the year ending 31.03.2018.

Receipts	Amount ₹	Amount ₹	Payments	Amount ₹	Amount ₹
To Admission fees		22,000	By Furniture		12,000
To Subscriptions		40,000	By Stationery		4,000
To Donations		18,000	By Office Rent		2,600
			By Newspapers & Periodicals		300
			By Telephone Expenses		560
			By Investments		23,000
			By Balance c/d
			Cash in Hand	7,540
			Cash at Bank	30,000	37,540
		80,000			80,000

Adjustments:

1) Subscription Outstanding for the year was ₹ 5,000

2) Depreciate Furniture @10 % p.a

3) Full amount of Admission Fees and 50*% Donations are to be capitalized.

You are required to prepare Income and Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that date.

Solution:

In the books of Jeevan Jyoti Art Circle

Income and Expenditure Account for the year ended 31st March 2018

Expenditure	Amount ₹	Amount ₹	Income	Amount ₹	Amount ₹
To Stationery		4,000	By Donations	18,000
To Office rent		2,600	Less: 50 % Capitalised	9,000	9,000
To Newspapers and Periodicals		300	By Subscription	40,000
To Telephone Expenses		560	Add: Outstanding of Current Year	5,000	45,000
To Depreciation Furniture		1,200
To Surplus (Excess of income over expenditure)		45,340
		54000			54000

Balance Sheet as on 31st March, 2018

Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
Capital Fund	-		Furniture	12,000
Add: Surplus	45,340		Less: Depreciation	1,200	10,800
Add: Admission Fees (Capitalised)	22,000		Investments		23,000
Add : Donations (50 % Capitalised)	9,000	76,340	Cash in Hand		7,540
			Cash at Bank		30,000
			Outstanding Subscription		5,000
		76,340			76,340

Working Notes:

The full amount of admission fees and 50% of donations are added to the surplus amount to get the capital funds. (Opening balance of the capital fund is not given.)

Book-keeping and Accountancy 12th Standard

HSC Maharashtra State Board. Latest Syllabus.

Chapter 1: Introduction to Partnership and Partnership Final Accounts

Chapter 2: Accounts of ‘Not for Profit’ Concerns

Chapter 3: Reconstitution of Partnership (Admission of Partner)

Chapter 4: Reconstitution of Partnership (Retirement of Partner)

Chapter 5: Reconstitution of Partnership (Death of Partner)

Chapter 6: Dissolution of Partnership Firm

Chapter 7: Bills of Exchange

Chapter 8: Company Accounts - Issue of Shares

Chapter 9: Analysis of Financial Statements

Chapter 10: Computer In Accounting