800Add: Due700To Rent5009
000Add: Outstanding60560By accrued Interest on NSC100To Stationery & Postage200To help to Needy students2
000To Surplus â Excess of Income over Expenditure1
4409
1009
100Illustration: 9From the following Receipts and Payments Account and other details of Pattabhi Memorial Trust
which commences its working from 1st January
2014 with a capital of `40
000 in cash and furniture `20
0
prepare Income & Expenditure Account and Balance Sheet.Dr. Receipts and Payments Account Cr.ReceiptsAmount(`)PaymentsAmount(`)To Balance b/d40
000By Salaries15
000To Donations60
000By Conveyance6
000To Legacies16
000By Rent12
000To subscriptions14
000By Subscriptions to Journals5
400To Furniture Sold (on 31.12.2014)6
000By Stationery1
000By Books4
000By Buildings (Purchased on 1.1.2014)68
000By Balance24
6001
36
1
36
000Additional information:a) Provide for depreciation on Furniture @10% and on Buildings @10% and on Books `1
000b) Outstanding subscriptions at the end of the year 2014 `15
000 and subscriptions received in advance for 2015 were `5
000c) Outstanding expenses: Rent `1
000; Salary `2
000Solution:Pattabhi Memorial TrustIncome and Expenditure Account for the year ended 31.12.2014Dr. Cr.ExpenditureAmount (`)Amount (`)IncomeAmount (`)Amount(`)To Salaries15
000By Donations60
000Add: Outstanding2
17
000By Subscriptions14
000To Conveyance6
000Add: Outstanding Subscription15
29
000To Rent12
000Less: Received in Adv.5
24
000Add: Outstanding rent1
13
000To Subscriptions to Journals5
400
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