Page 100 - VIRANSH COACHING CLASSES

11 : Following is the Balance Sheet on 1 April 2019 and Receipts and Payments Account of
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Dayanand Library Ambajogai. You are required to prepare Income and Expenditure
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Account of the year ended 31 March 2020 and Balance Sheet as on that date.
Balance Sheet as on 31 March 2019
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Liabilities Amount Assets Amount
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Capital Fund 7,50,000 Furniture 50,000
Subscription received in Advance 3,000 Books 6,50,500

Outstanding Expenses 2,000 Stock of Postage stamps 500
Investments in Securities 7,000
Cash in Hand 7,000
Cash at Bank 40,000

7,55,000 7,55,000

Receipts and Payments Account
for the year ended 31 March 2020
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Dr. Cr.
Receipts Amount Payments Amount
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To Balance b/d By Salaries 24,000
Cash 7,000 By Purchase of Postage Stamps 1,500
Bank 40,000 By Books (Purchased on 1-10-19) 1,00,000
To Members Subscription 1,80,000 By Outstanding Expenses Paid 2,000
To Entrance fees 30,000 By Investments in Fixed Deposit 50,000

To Sale of old News Papers 2,000 By Furniture 30,000
To Hire of Lecture Hall 10,000 (Purchases on 1-7-2019)
To Interest on securities 5,000 By Printing & Stationery 6,000
To Life Members Fee 10,000 By Rent 18,000
By Balance c/d

Cash 9,500
Bank 43,000
2,84,000 2,84,000

Adjustments :
1) Depreciation on Books at 10 % p.a.
2) Depreciation on Furniture at 8.5 % p.a.
3) 50 % Entrance fees and whole amount of Life Membership Fees should be capitalised.

4) Library had 2,000 members paying Subscription ` 100 each.
5) The value of unused Postage Stamps was ` 200.

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