(Newly Started Art Circle) "Jeevan Jyoti Art Circle" a newly established concern has presented the following information.

8. (Newly Started Art Circle) "Jeevan Jyoti Art Circle" a newly established concern has presented the following information.

 Receipts and Payments account for the year ending 31.03.2018.

Dr.                                                                                                                                       Cr.

Receipts	Amt ₹	Amt ₹	Payments	Amt ₹	Amt ₹
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 Newspaper & Periodicals		300
			By Telephone Expenses		560
			By Investments		23,000
			By Balance c/d		23,000
			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. depreciation Furniture @10% p.a.
3. Full amount of admission fees and 50% Donation are top 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 he Books of Jeevan Jyoti Art Circle

Income and Expenditure Account fort the year ending 31.03.2018.

Dr.                                                                                                                           Cr.

Expenditure	Amount	Amount	Income	Amount	Amount
To Stationery		4,000	By Subscriptions	40,000
To Office Rent		2,600	(+) Outstanding Sub.	5,000	45,000
To Newspaper & Periodicals		300	By Donations 50%		9,000
To Telephone Exp		560
To Depreciation on Furniture		1,200
To Surplus		45,340
		54,000			54,000

Balance Sheet as on 31.03.2018

Cr.                                                                                                                         Dr.

Liabilities	Amount	Amount	Assets	Amount	AMOUNT
Admission fees	22,000		Furniture	12,000
Donations	9,000		(-) Depreciation	1,200	10,800
	31,000		Investments		23,000
Surplus	45,340	76,340	Cash in Hand	7,540
			Cash at Bank	30,000	37,540
			Outstanding Sub.		5,000
		76,340			76,340