From the following transactions of Receipts and Payemnts Account of "Pavan -putra Hanuman Vyayamshala" Parbhani, and the adjustments given, you are required to prepare Income and Expenditure Account and balance Sheet as on 31st March 2019.

 7. From the following transactions of Receipts and Payemnts Account of "Pavan -putra Hanuman Vyayamshala" Parbhani, and the adjustments given, you are required to prepare Income and Expenditure Account and balance Sheet as on 31st March 2019.

Dr.                                                                                                                             Cr.

Receipts	Amt ₹	Amt ₹	Payments	Amt ₹	Amt ₹
To Balance b/d			By Salaries		6,000
Cash in Hand		5,000	By Entertainment Expenses		2,480
T Subscriptions			By Sundry Expenses		1,300
2018-19	18,000		By Electricity Charges		1,200
2019-20	410	18,410	By Rent		700
To Donations		6,000	By Investment		15,000
To Receipts from Entertainment		5,400	By printing & Stationery		800
To Interest		400	By Postage		3,200
To Entrance fees		6,200	By Fixed Deposit		3,900
			By Balance c/d
			Cash in Hand	830
			Cash at Bank	6,000	6,830
		41,410			41,410

Adjustments:

1. There are 500 members paying an annual Subscription of ₹ 50 each.

2. Outstanding Salary was ₹ 1,200.

3. The Assets on 01.04.2018 were as follows:

Building ₹ 50,000, Furniture ₹ 15,000.

4. Provide Depreciation on Building and Furniture at 5% and 10% respectivey.

5. 50% Entrance fees is to be Capitalized.

6. Interest on Investments at 5% p.a. has accrued for 6 months.

7. Capital Fund ₹ 70,000 on 01.04.2018.

Solution:

In the Books of "Pavan -putra Hanuman Vyayamshala" Parbhani

Income and Expenditure Account for the year ended 31.04.2019.

Dr.                                                                                                                                 Cr.

Expenditure	Amount	Amount	Income	Amount	Amount
To salaries	6,000		By Subscription	18,000
(+) Outstanding Salary	1,200	7,200	(+) Outstanding Sub	7,000	25,000
To Entertainment exp		2,400	By Donation		6,000
To Sundry exp		1,300	By Receipts from Entertainments		5,400
To Electricity charges		1,200	By Interest		400
To Rent		700	By 50% Entrance fees		3,100
To Printing & Stationery		800	By Interest on Investments		375
To Postage		3,200
To Depreciation on
Furniture	1,500
Building	2,500	4,000
To Surplus		19,395
		40,275			40,275

Balance Sheet as on 31st March 2019.

Cr.                                                                                                                                     Dr.

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital fund	70,000		Building	50,000
(+) Entrance fees	3,100		(-) Depreciation	2,500	47,275
	73,100		Furniture	15,000
(+) Surplus	19,395	92,495	(-) Depreciation	1,500	13,500
			Investments	15,000
Outstanding salaries		1,200	(+) Interest	375	15,375
Prepaid Subscriptions  2019-20		410	Fixed deposit		3,900
			Cash in Hand		830
			Cash at Bank		6,000
			Outstanding sub.		7,000
		94,105			94,105