Chapter 17

The Account of Making organizations

Questions # 1

Income and Expenditure Accounts for the year ended 31st December 2017

Expenditure Rs. Income Rs.

Printing and Stationery 465 Subscriptions 8565
Newspapers 1110 Interest on investment 200
Repairs 650 Sale old paper 465
Loss on Sale of Furniture 315 Receipts from recreation 865
Depreciation on Sports Materials 1000 Miscellaneous receipts 125
Salaries 1500
Excess of income over expenditure 5180

10220 10220

Balance Sheet as 31.12.2017

Assets Rs. Liabilities Rs.

Cash Balance 3165 Capital Fund 3485
Books 6150 Add: Entrance fees 650
Sports Material 5000 Donation 6000
Less: Depreciation 1000 4000 Excess of income
Investment 2000 over Expenditure 5180 15,315

15,315 15,315
Note :As there are no particulars assets and liabilities of the society , the opening balance is
treated as capital fund .
Questions # 2

Income and Expenditure Accounts of music club for the year ended 31 st March 2016

Expenditure Rs. Income Rs.

Concert expenses 10,000 Entrance fees 2000

Salaries 800 Subscriptions 6000
Add: Accrued
Add: Outstanding 125 925 200
Printing Stationery 600 6200
Telephone expenses 300 Less: Received in Advance 400 5800
Award 3800 interest on securities 400
Add: Accrued
Depreciation: 100 500
Buildings 1000 Rent 6000
Furniture 125 Government Grant 9600
Public address system 80 1205
Excess of income over expenditure 7070

23,900 23,900
Balance Sheet as 31.03.2016

Assets Rs. Liabilities Rs.

Cash in Hand 1000 Capital fund:
Cash at Bank 2000 Life member fees 8000
Building 20000 Donations 12000
Less: Depreciations 1000 19000 Entrance fees 4000
Furniture 2500 24000
Less: Depreciations 125 2375 Add: Excess of income
Public address system 4000 over expenditure 7070 31,070
Less :Depreciation 80 3920 Subscriptions received
Investment 3000 in advance 400
Add: Accrued interest 100 3100 Salaries outstanding 125
Subscriptions receivable 200

31,595 31,595
Questions # 3

(Opening ) Balance Sheet as 1.01.2017

Assets Rs. Liabilities Rs.

Cash Balance 2476 Capital Fund 2476
 2476 2476
st
Income and Expenditure Accounts of Leo’s club for the year ended 31 December 2017

Expenditure Rs. Income Rs.

General Expenses 1084 Subscription 3260
Salaries 1100 Add: Receivable 700 3960
Rent 1120 Entrance fees 400
Printing 250 Miscellaneous receipts 466
Repairs 300 Interest 80
Depreciation on Furniture 200 Life membership fees (500 x 10/100) 50
Excess of income 852

4956 4956
Balance Sheet as 31st .Dec.2017
Assets Rs. Liabilities Rs.
Furniture 1600 Capital Fund 2476
Less: Depreciation 200 1400 Add: Life membership fees 450
Cash Balance 1728 Excess of income
Subscriptions receivable 700 Over expenditure 902 3828

3828 3828
Note: Proceeding year’s Assets and liabilities were not given except for the opening cash
balance therefore this balance cash at the beginning is to be cosine red as capital
Fund .Suppose 10% of life membership fees is treated as revenue receipts.

Questions # 4

(Opening ) Balance Sheet as 1 .1.2016

Assets Rs. Liabilities Rs.

Cash Balance 7000 Capital Fund (Balance Fig.) 2,29,500
Buildings 2,00,000
Cutlery 6000
 Kitchen Ware 8000
Telephones Deposits 8000
Subscriptions receivable 500

2,29,500 2,29,500
Income and Expenditure Accounts of Young Association for the year ended 31 st December 2016

Expenditure Rs. Income Rs.

Salaries 3000 Subscriptions 9000
Printing & Stationery 300 Add: Receivable 1000 10,000
Postage and Telephones 1800 Annual Dinner Receipts 6000
Municipal Taxes 1600 Hall Rent 3000
Less: prepaid 400 1200 Miscellaneous Income 600
Electricity Charges 1200 Excess of Expenditure over income 7100
Annual admit charges 4800
Depreciation:
Building 10,000
Cutlery 2400
Kitchenware 2000 14,400

26700 26700

Balance Sheet as 31st .Dec.2016

Assets Rs. Liabilities Rs.

Fixed Deposit Capital Fund 2,29,500
Cash Add: Entrance fees 1000
Buildings 2,00,000 Life Membership fees 5000
less: Depreciation
10,000 Less : Excess of Expenditure
over income 2,28,40
Cutlery 6000 71000 0
Add: Purchases
3000 Subscriptions received in advance 10,000
 9000
Less: Depreciation 2400
Kitchenware 8000
Less: Depreciation 2000
Telephone deposits 8000
Subscriptions receivable 1000
Prepaid Taxes 400

2,29,40 2,29,40
0 0
Note :The Depreciation on cutlery purchased during the year ,need not be calculated ,unless
the date of purchase given