For considering adjustments relating to subscription only Receipts and Payments Account for the year ended 31st March 2018 Dr. Cr.ReceiptsAmount ₹Amount ₹PaymentsAmount ₹Amount ₹To Subscription 2016-171,500 2017-1880,000 2018-193,50085,000 Adjustments : 1) Subscription outstanding for current year was ₹ 7,000 2) Outstanding subscription for 2016 - 17 was ₹ 2,000 Subscription received in advance during last year was ₹ 8,000. With the help of above information show the effects in final account.

For considering adjustments relating to subscription only Receipt…

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Sr.No.	Total (₹)	Prepaid/Outstanding	₹	Expenditure for the year
1	1,100	Prepaid	100	?
2	2,700	Prepaid	?	2,000
3	8,250	Prepaid	?	6,650
4	1,200	Outstanding	200	?
5	?	Outstanding	600	5,100
6	1,800	Outstanding	?	2,200

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Prem, Verma, Sharma were partners sharing profits and losses in the ratio 2 : 1 : 1 Their Balance sheet as on 31st March 2019 is as follows.

Balance Sheet as on 31st March 2019
Liabilities	Amt ₹	Assets	Amt ₹
Creditors	20,000	Premises	2,40,000
Bank Loan	90,000	Debtors	2,00,000
Bill Payable	10,000	Furniture	60,000
General Reserve	64,000	Stock	1,00,000
Capital Account :		Cash	2,00,000
Prem	2,40,000
Verma	2,00,000
Sharma	1,76,000
	8,00,000		8,00,000

1. Prem died on 30th June 2019 and the following adjustments were made Prem’s share of profit is to be calculated on the average profit of the last two years.
2. Prem’s share in the Goodwill of the firm be given him. Goodwill will be valued at three times of the average profits of the last four years. The profits were.
2015-16 ₹ 1,60,000
2016-17 ₹ 1,20,000
2017-18 ₹ 80,000
2018-19 ₹ 40,000
3. Premises be valued at ₹ 2,80,000 and R.D.D. of ₹ 8,000 be created on debtors.
4. Drawing of Prem up to the date of his death were ₹ 15000 per month.
5. Interest on capital is allowed at 10% p.a. and to be charged on drawing at ₹ 4000
6. The amount due to Prem be transferred to his executors loan account.
Prepare : Prem’s Capital Account, Give working of Prem’s share in Goodwill, and Interest on capital.

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The following is the Receipts and Payments Account of Young Pensior's Association. Leh for the year ended 31st March 2020.

Dr.	Receipts & Payments Account for the year ended 31st March 2020				Cr.
Receipts	Amount ₹	Amount ₹	Payments	Amount ₹	Amount ₹
To Bal b/d		7,000	By Stationery		8,000
To Subscriptions			By Postage		1,000
2018-19	5,000		By Picnic Exp		8,000
2019-20	83,000		By Salaries		8,000
2020-21	2,000	90,000	By Annual		4,500
To Entrance fees		13,000	General meeting
(Capital Receipt)			Expenses
To Donations		60,000	By Traveling Exp		7,500
To Legacies		40,000	By Rent		12,000
To Interest on			By charity		7,800
Deposit		7,000	By Sundry Exp.		3,200
To Picnic Receipts		10,000	By Fixed Deposit		1,10,000
			By Furniture		50,000
			By Balance c/d		7,000
		2,27,000			2,27,000

Adjustment :
1) Outstanding subscription for current year ₹ 7,000.
2) Furniture was purchased on 1st Oct, 2019 and it is to be depreciated by 10 % p.a.
3) Outstanding picnic receipts ₹ 7,500.
4) Stock of stationery on 1-4-2019 was ₹ 350 and on 31st March, 2020 was ₹ 1,700.
5) 50 % of legacies and full amount of donations are to be capitalised.
With the above information, you are required to prepare Income and Expenditure Account for the year ended 31st March 2020.

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Simple Example - Prepare Income and Expenditure Account only
From the following Receipts & Payments Account and Adjustments given below you are required to prepare Income and Expenditure Account for year ended 31st March 2020 of Venna Cultural Association, Satara.

Dr.	Receipts & Payments Accounts for the year ended 31st March 2020				Cr.
Receipts	Amount	Amount _(₹)	Payments	Amount _(₹)	Amount _(₹)
To Balance b/d			By Rent
Cash in Hand	10,000		2018-19	700
Cash at Bank	19,200	29,200	2019-20	54,300	55,000
To Subscriptions	-		By Fixed Deposit		47,000
2018-19	15,000		By Sundry Exp.		8,000
2019-20	1,00,000		By Insurance		12,000
2020-21	8,000	1,23,000	By Printing & Stationery		6,000
To Donations	-	25,000	By Picnic Expenses		18,000
(General)			By Salaries		20,000
To Entrance fees		15,000	By Traveling Expenses		13,000
To Interest on Fixed		4,800	By Advt. (2018 - 19)		7,000
Deposit			By Balance c/d
To Picnic Receipts		20,000	Cash in Hand	15,000
			Cash at Bank	16,000	31,000
		2,17,000			2,17,000

Adjustments :
1) Outstanding Rent for the current year was ₹ 7,000.
2) 60 % Entrance fees should be capitalised.
3) Outstanding subscription for the current year was ₹ 20,000.
4) Prepaid Insurance ₹ 1,000.

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Sr. No.	Income (₹)	Expenditure (₹)	Surplus/Deficit (₹)
1	10,000	?	5,000 (Deficit)
2	8,000	?	4,000 (Surplus)
3	?	15,000	8,000 (Surplus)
4	7,500	9,000	?
5	15,000	11,300	?

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Ajay, Sanjay and Vijay were partners sharing profits and losses in the proportion to their capital. Their Balance Sheet as on 31st March 2019 was as follows.

Balance Sheet as on 31st March 2019
Liabilities	Amt ₹	Assets		Amt ₹
Capital Account :		Land & Building		80,000
Ajay	60,000	Motor Lorry		40,000
Sanjay	40,000	Debtors	32,000
Vijay	20,000	Less: R. D. D.	4,000	28,000
Creditors	50,000	Furniture		36,000
Outstanding Salary	6,000	Bank		28,000
Reserve Fund	36,000
	2,12,000			2,12,000

Vijay died on 1 st August 2019 and the following adjustments were made.
1. Assets to be revalued as under Land & Building ₹ 88,000, Motor Lorry ₹ 36,000 and Furniture ₹ 34,000
2. All Debtors were good.
3. Goodwill of the firm valued at two times the average profit of the last 4 years profit.
4. Vijay’s share of profit to be calculated on the basis of average profit of last three years.
5. Profit for 4 years were 1st year ₹ 12,000, 2nd year ₹ 24,000, 3rd year ₹ 14,000, 4th year ₹ 22,000
Prepare : 1. Vijay’s Capital Account, showing amount payable to his executor.
2. Give working of Vijay’s share of Goodwill and profit upto the date of his death.

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From the following Receipts and Payments Account of Bahurao Patil Polytechnic College, Nagpur for the year ending 31st March 2019 and additional information. Prepare Income and Expenditure Account for the year ended 31st March 2019 and a Balance Sheet as on that date.

Dr.	Receipts & Payments Account for the year ended 31st March 2019		Cr.
Receipts	Amount ₹	Payments	Amount ₹
To Balance b/d		By Salaries to teaching staff	15,00,000
Cash	12,000	Office Staff	8,55,000
Bank	2,00,000	By Printing & Stationery	27,000
To Interest	60,000	By Books	88,000
To Donations	7,00,000	By Furniture	78,000
To Tution fees	15,00,000	(Purchased on 1-1-2019)
To Admission fees	65,000	By Drama Expenses	90,000
To Term fees	4,00,000	By Postage	7,000
To Drama Receipts	1,00,000	By Telephone Charges	6,000
To Rent from use of hall	6,000	By Electricity	61,000
To Legacies (capital)	60,000	By Magazines and Newspaper	6,000
		By Balance c/d
		Cash	62,000
		Bank	3,23,000
	31,03,000		31,03,000

Additional Information :
1)

Particulars	1/4/2018(₹)	31/3/2019(₹)
Books	9,00,000	8,88,000
Furniture	3,26,000	3,00,000
Building Fund	8,27,000	?
Capital Fund	6,11,000	?

2) 60 % Donations are for Building Fund and balance is to be treated as revenue income.
3) Outstanding office staff Salaries ₹ 70,000.

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Dr.					Cr.
Receipts	Amount ₹	Amount ₹	Payments	Amount ₹	Amount ₹
To Subscription
2016-17	1,500
2017-18	80,000
2018-19	3,500	85,000

Accounts of ‘Not for Profit’ Concerns — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

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