"Bhartiya Kala Kendra", Solapur gives you the following information, for the year ended on 31.03.2018 Prepare income and Expenditure account for the year ending 31.02.2018

5. "Bhartiya Kala Kendra", Solapur gives you the following information, for the year ended on 31.03.2018 Prepare income and Expenditure account for the year ending 31.02.2018

Receipts and Payments Account for the year ending 31.03.2018

Dr.                                                                                                                            Cr.

Receipts	Amt ₹	Amt ₹	Payments	Amt ₹	Amt ₹
To Balance b/d			By Stationery		600
Cash in Hand		200	By Furniture Purchased		7,000
Cash at Bank		12,500	By Investments in Govt. Securities		14,000
To Locker Rent		400	By Expenses of Drama		3,000
To Entrance fees		2,900	By Postage		450
To Sale of old newspaper		250	By Magazine and Newspaper		600
To Receipts from Drama		9,000	By Salaries		4,400
To Legacies		12,000	By Balance c/d
To Interest of Govt. Securities		400	Cash in Hand		700
To Miscellaneous Receipts		400	Cash at Bank		7,300
		38,050			38,050

 Additional Information:

1. Legacies are to be Capitalized

2. Outstanding Salary  200

3. 50% of Entrance Fees are to be Canalized

Solution:  

In the books of Bhartiya kala kendra

Income and Expenditure Account for the year ended 31.03.2018

Dr.                                                                                                                                 Cr.

Expenditure	Amount	Amount	Income	Amount	Amount
To Stationery		600	By Locker Rent		400
To Expense of Drama		3,000	By 50% entrance fees		1,450
To Postage		450	By Sale of old newspaper		250
To Magazines & Newspaper		600	By receipts from drama		9,000
To salaries	4,400		By Interest of Govt. Securities		400
(+) Outstanding Salary	200	4,600	By Miscellaneous receipts		400
To Surplus		2,650
		11,900			11,900

Explanation:

Legacies are to be Capitalized

Legacies are gifts received under any thing to the firm.  It can be for specific purpose or general gift.  It is the important term in the NPO Chapter. Legacy can treat as Capital if motioned otherwise state in the Income side.