"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.

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