NOTES

Preparation of Income and Expenditure Account and Statement of Affairs.

From the following data, prepare an Income and Expenditure Account for the year ended 31^st December 2017, and a Statement of Affairs as at that date of the Peacock Hospital:

Receipts and Payments Account for the year ended 31^st December 2017

Receipts		Rs.	Payments		Rs.
To Balances:			By Salaries (Rs. 36,000 for 2016)		1,56,000
Cash	4,000		By Hospital Equipment		85,000
Bank	26,000	30,000	By Furniture Purchased		30,000
To Subscriptions:			By Additions to Building		2,50,000
For 2016		25,500	By Printing and Stationery		12,000
For 2017		1,22,500	By Diet Expenses		78,000
For 2018		12,000	By Rent and Rates (Rs. 1,500 for 2018)		10,000
To Government Grant:			By Electricity and Water Charges		12,000
For Building		4,00,000	By Office Expenses		10,000
For Maintenance		1,00,000	By Investments		1,00,000
To Fees from Sundry Patients		24,000	By Balances:
To Donations (not to be capitalized)		40,000	Cash	7,000
To Net Collections from Benefit Shows		30,000	Bank	34,000	41,000
Total		7,84,000	Total		7,84,000

Additional information:

Particulars	Rs.
Value of Building under construction as on 31.12.2017	7,00,000
Value of Hospital Equipment on 31.12.2017	2,55,000
Building Fund as on 01.01.2016	4,00,000
Subscriptions in Arrears as on 31.12.2016	32,500

Investments in 8 % Govt. Securities were made on 1^st July 2017.

Notes of Company Accounts - Introduction to Company Accounts (Old & New)

1. Preparation of Income and Expenditure Account and Statement of Affairs.

   From the following data, prepare an Income and Expenditure Account for the year ended 31^st December 2017, and a Statement of Affairs as at that date of the Peacock Hospital:

   Receipts and Payments Account for the year ended 31^st December 2017

   Receipts		Rs.	Payments		Rs.
   To Balances:			By Salaries (Rs. 36,000 for 2016)		1,56,000
   Cash	4,000		By Hospital Equipment		85,000
   Bank	26,000	30,000	By Furniture Purchased		30,000
   To Subscriptions:			By Additions to Building		2,50,000
   For 2016		25,500	By Printing and Stationery		12,000
   For 2017		1,22,500	By Diet Expenses		78,000
   For 2018		12,000	By Rent and Rates (Rs. 1,500 for 2018)		10,000
   To Government Grant:			By Electricity and Water Charges		12,000
   For Building		4,00,000	By Office Expenses		10,000
   For Maintenance		1,00,000	By Investments		1,00,000
   To Fees from Sundry Patients		24,000	By Balances:
   To Donations (not to be capitalized)		40,000	Cash	7,000
   To Net Collections from Benefit Shows		30,000	Bank	34,000	41,000
   Total		7,84,000	Total		7,84,000

   Additional information:

   Particulars	Rs.
   Value of Building under construction as on 31.12.2017	7,00,000
   Value of Hospital Equipment on 31.12.2017	2,55,000
   Building Fund as on 01.01.2016	4,00,000
   Subscriptions in Arrears as on 31.12.2016	32,500

   Investments in 8 % Govt. Securities were made on 1^st July 2017.

   
   see in detail
   
   

2. Preparation of Income and Expenditure A/c and Balance Sheet RTP, M 96

   From the following Receipts & Payments A/c of Excellent Club for the year ended 31.03.2018 and additional information, prepare an Income & Expenditure A/c for the year ended 31.03.2018 and Balance Sheet as on 31.03.2018:

   Receipts	Rs.	Payments	Rs.
   Opening Balance of Cash & Bank	3,180	Secretary’s Salary	12,000
   Subscription	18,000	Salaries to Staff	25,000
   Sale of Old Newspapers	2,500	Charities	1,000
   Legacies	4,000	Printing and stationery	600
   Interest on investments	2,000	Postage Expenses	120
   Endowment Fund Receipts	20,000	Rates and Taxes	1,500
   Proceeds of Sport and Concerts	4,020	Upkeep of land	2,000
   Advertisement in the year book	5,000	Purchase of Sports Materials	10,000
   		Telephone Expenses	3,480
   		Closing Balance of Cash & Bank	3,000
   Total	58,700	Total	58,700

   Assets and Liabilities as on 31.03.2017 and 31.03.2018 were as follows:-

   Particulars	31.03.2017	31.03.2018
   Subscription in Arrears	2,000	1,000
   Subscription Received in Advance	500	400
   Furniture	2,000	1,800
   Land	10,000	10,000

   Additional Information:

   1. Depreciation is charged at 10% p.a. under the Diminishing Value Method.

   2. Legacies received shall be capitalized.

   3. Investments were made in securities, bearing 12% p.a. Interest, the date of investment was 01.06.2016 and the amount of Investments was Rs. 20,000. Due date of interest is 31^st March of every year.

   4. Stock of Sports Materials on 31.03.2018 was useless and valued at NIL Price.

   
   see in detail
   
   

3. Preparation of Income and Expenditure A/c and Balance Sheet.
   

   From the following Receipts and Payments account of Mumbai Club, prepare Income and Expenditure Account for the year ended 31.12.2017 and its Balance Sheet as on that date:

   Receipts	Rs.	Payments	Rs.
   Cash in Hand (Opening)	4,000	Salary	2,000
   Cash at Bank (Opening)	10,000	Repair Expenses	500
   Donations	5,000	Purchase of Furniture	6,000
   Subscriptions	12,000	Miscellaneous Expenses	500
   Entrance Fees	1,000	Purchase of Investments	6,000
   Interest on Investments	100	Insurance Premium	200
   Interest Received from Bank	400	Billiards Table	8,000
   Sale of Old Newspaper	150	Paper, Ink etc.	150
   Sale of Drama Tickets	1,050	Drama Expenses	500
   		Cash in Hand (Closing)	2,650
   		Cash at Bank (Closing)	7,200
   Total	33,700	Total	33,700

   Information:

   1. Subscriptions in Arrear for 2017 Rs. 900 and Subscriptions in Advance for 2018 - Rs. 350.

   2. Insurance Premium Outstanding Rs. 40, Miscellaneous Expenses Prepaid Rs. 90.

   3. 50% of Donation is to be capitalized.

   4. Entrance Fees are to be treated as Revenue Income.

   5. 8% Interest has Accrued on Investments for 5 months.

   6. Billiards Table costing Rs. 30,000 were purchased during the last year and Rs. 22,000 was paid for it.

   
   see in detail
   
   

4. Preparation of Income and Expenditure Account and Balance Sheet.
   

   The Accountant of Raman Club furnishes you the Receipts & Payments A/c for the year ending 31^st March 2018:

   Receipts	Rs.	Payments	Rs.
   Opening Balance: Cash and Bank	16,760	Honorarium to Secretary	9,600
   Subscription	21,420	Misc. Expenses	3,060
   Sale of Old Newspapers	4,800	Rates and Taxes	2,520
   Entertainment Fees	8,540	Groundman’s Wages	1,680
   Bank Interest	460	Printing and Stationery	940
   Bar Receipts	14,900	Telephone Expenses	4,780
   		Payment for Bar Purchases	11,540
   		Repairs	640
   		New Car (Less Sale Proceeds of Old Car - Rs. 6,000)	25,200
   		Closing Balance of Cash and Bank	6,920
   Total	66,880	Total	66,880

   Additional Information:

   Particulars	01.04.2017	31.03.2018
   Subscription due (not received)	2,400	1,960
   Cheques issued but not presented, for payment for printing	180	60
   Club Premises at Cost	58,000	-
   Depreciation on Club Premises provided so far	37,600	-
   Car at Cost	24,380	-
   Depreciation on Car provided so far	20,580	-
   Value of Bar Stock	1,420	1,740
   Amount unpaid for Bar Purchases	1,180	860

   Depreciation is to be provided at 5% p.a. on the Written Down Value of the Club Premises and at 15% on car for the whole year. Prepare an Income and Expenditure Account of Raman Club for the year ending 31^st March 2018, and a Balance Sheet as on that date.

   
   see in detail
   
   

5. Preparation of Income and Expenditure Account and Balance Sheet.

   The Receipts and Payments Account of Navkar Football Club for the year ended 31^st March 2018 was as under:

   Particulars	Rs.	Particulars	Rs.
   To balance b/d	48,000	By Purchase of Balls	80,000
   To Subscriptions	2,46,000	By Tournament Fees	10,000
   To Interest	2,000	By Affiliation Fees	2,000
   To Sale of Furniture	10,000	By Rent of Playground	5,000
   To Donations for Club building	60,000	By Refreshment to players	4,000
   		By Travelling Expenses	30,000
   		By Investment Purchased at Face Value	1,00,000
   		By Salary	12,000
   		By Miscellaneous Expenses	8,000
   		By balance c/d	1,15,000
   Total	3,66,000	Total	3,66,000

   Prepare the Club’s Income and Expenditure Account for the year ended 31^st March 2018, and the Balance Sheet as on that date, after taking the following information into account -

   • The Subscription received includes Rs. 10,000 Outstanding Subscription of the year 2012 - 2017. Subscription for the year 2017 - 2018 amounting to Rs. 16,000 is still outstanding from Members. Some Members have paid Subscription for the year 2018 - 2019 amounting to Rs. 8,000 which is included in the Subscriptions Received.

   • Interest accrued but not received Rs. 500.

   • Book Value of the Furniture sold was Rs. 14,000.

   • Rent of Playground Rs. 6,000 and Salary Rs. 5,000 of the year 2017 - 2018 are still outstanding, and Rent of Playground of the year 2012 - 2017 Rs. 1,000 has been paid during this year.

   • There is Stock of Balls with the Club Rs. 4,000 on 31^st March 2018.

   
   see in detail