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+4 votes
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in Accounts by (55.7k points)
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From the following Receipts and Payments Account and additional information given below, prepare Income and Expenditure Account and Balance Sheet of Rural Literacy Society as on 31st March, 2018:

Additional information: 

(i) Subscription outstanding as on 31st March, 2017 Rs. 20,000 and on 31st March, 2018 Rs.15,000. 

(ii) On 31st March, 2018, salary outstanding Rs. 6,000 and one month rent paid in advance. 

(iii) On 1st April, 2017, society owned furniture Rs. 1,20,000 and books Rs. 50,000.

by (10 points)
How 7000 is added to subscription
by (10 points)
+1
See, Subscription O/s as on 31/3/2019 is 20000 means O/s was 8000 and remaining recieved in Current year that is 12000.
Now , Subscription O/s as on 31/3/2020 is 15000 means question I silent that's assume that previous year O/s was still O/s = 8000 and remaining from 15000 means 7000 is of this year which was received in Current year.

That only added in Subscription.
Summary:
                          20000 divided into :
1) Recieved: 12000
2) O/s: 8000

                          15000 divided into:
1) still O/s : these upper 8000
2) Remaining Recieved : 7000

3 Answers

+1 vote
by (15.0k points)
selected by
 
Best answer

Income and Expenditure Account
for the year ending March 31, 2018

Dr.

Cr.

Expenditure

Amount

(₹)

Income

Amount (₹)

General Expenses

32,000

Subscriptions

2,65,000

Newspaper

18,500

Add: Current O/s

7,000

2,72,000

Electricity

30,000

Legacy

12,500

Salary

36,000

Government Grant

1,20,000

Add: Outstanding

6,000

42,000

Interest on Fixed Deposit

9,000

Rent

65,000

(18,000 @ 10% for 6 months)
Less: Prepaid

5,000

60,000

Postage Charges

3,000

Loss on Sale of Furniture

13,000

Surplus

2,15,000

4,13,500

4,13,500

Balance Sheet
as on March 31, 2018

Liabilities

Amount

(₹)

Assets

Amount (₹)

Capital Fund Books

50,000

Opening Balance

3,85,500

Add: Purchases

70,000

1,20,000

Add: Surplus

2,15,000

6,00,500

Prepaid Rent

5,000

Salary Outstanding

6,000

Furniture

1,20,000

Subscription Received in Advance

5,000

Add: Purchases

1,05,000

Less: Sale

50,000

1,75,000

Fixed Deposit

1,80,000

Add: Accrued Interest

4,500

1,84,500

Subscriptions Outstanding

15,000

Cash

30,000

Bank

82,000

6,11,500

6,11,500

+5 votes
by (57.7k points)

Working Notes:

+1 vote
by (15.0k points)

Working Notes:

1. Ascertainment of Capital Fund

Balance Sheet
as on March 31, 2017

Liabilities

Amount

(₹)

Assets

Amount (₹)

Capital Fund 3,85,500 Subscriptions Outstanding

20,000

Books

50,000

Furniture

1,20,000

Cash

40,000

Bank

1,55,500

3,85,500

3,85,500

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