Given below is the Balance Sheet of ‘Bhanubai Mahila Seva Kendra’ as on 1st April 2019 and Receipts and Payments account for the year ending 31st March 2020:Balance Sheet as on 1st April 2019LiabilitiesAmount (₹)AssetsAmount (₹)Capital fund40,000Mach…

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Q.6 Given below is the Balance Sheet of ‘Bhanubai Mahila Seva Kendra’ as on 1st April 2019 and Receipts and Payments account for the year ending 31st March 2020: Balance Sheet as on 1st April 2019 LiabilitiesAmount (₹)AssetsAmount (₹) Capital fund40,000Machinery10,000 Outstanding Expenses:Furniture20,000 Wages8,000Government Bonds6,500 Electricity7,000Outstanding Subscription8,500 Stationery1,000Cash at bank10,000 Cash in hand1,000 56,00056,000 Receipts and Payments Account for the year ended 31st March 2020 ReceiptsAmount (₹)PaymentsAmount (₹) To Balance b/d: Cash in hand 1,000 Cash at bank 10,00011,000By Electricity Charges25,000 To Subscription: 2018-2019 2,000 2019-2020 45,000 2020-2021 3,00050,000By Wages22,000 To Entrance fees28,000By Stationery3,000 To Other receipts5,000By Rent and Taxes11,800 By Travelling Expenses8,000 By Balance c/d: Cash in hand 4,000 Cash at bank 20,20024,200 94,00094,000 Additional information: Outstanding wages ₹ 450 Entrance fees should be capitalised. Depreciate furniture at 10% p.a. Subscription for 2019-20 was outstanding ₹ 3,000 Prepare: (a) Income and Expenditure account for the year ended 31st March 2020. (b) Balance Sheet as on 31st March 2020.

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Answer: Deficit ₹ 3,250; Capital Fund on 31st March 2020 ₹ 64,750; Balance Sheet total ₹ 68,200. Working notes Electricity: paid ₹ 25,000 – outstanding of last year ₹ 7,000 = ₹ 18,000. Wages: paid ₹ 22,000 – last year outstanding ₹ 8,000 + current outstanding ₹ 450 = ₹ 14,450. Stationery: paid ₹ 3,000 – last year outstanding ₹ 1,000 = ₹ 2,000. Subscription income 2019-20: received ₹ 45,000 + outstanding ₹ 3,000 = ₹ 48,000. Subscription for 2018-19 (₹ 2,000) reduces last year’s outstanding: ₹ 8,500 – ₹ 2,000 = ₹ 6,500 still outstanding. Subscription for 2020-21 (₹ 3,000) is received in advance (liability). Depreciation on furniture: 10% of ₹ 20,000 = ₹ 2,000. Entrance fees ₹ 28,000 are capitalised, i.e. added to the Capital Fund and not shown as income. (a) Income and Expenditure Account for the year ended 31st March 2020 Dr. ExpenditureAmount (₹)Cr. IncomeAmount (₹) To Electricity Charges 25,000 Less: Outstanding (2018-19) 7,00018,000By Subscription 45,000 Add: Outstanding (2019-20) 3,00048,000 To Wages 22,000 Less: Outstanding (2018-19) 8,000 Add: Outstanding (2019-20) 45014,450By Other receipts5,000 To Stationery 3,000 Less: Outstanding (2018-19) 1,0002,000By Excess of Expenditure over Income (Deficit) transferred to Capital Fund3,250 To Rent and Taxes11,800 To Travelling Expenses8,000 To Depreciation on Furniture2,000 56,25056,250 (b) Balance Sheet as on 31st March 2020 LiabilitiesAmount (₹)AssetsAmount (₹) Capital Fund 40,000 Add: Entrance fees 28,000 Less: Deficit 3,25064,750Machinery10,000 Outstanding Wages450Furniture 20,000 Less: Depreciation 2,00018,000 Subscription received in advance (2020-21)3,000Government Bonds6,500 Outstanding Subscription: 2018-19 6,500 2019-20 3,0009,500 Cash at bank20,200 Cash in hand4,000 68,20068,200

Given below is the Balance Sheet of ‘Bhanubai Mahila Seva Kendra’ as on 1st April 2019 and Receipts and Payments account for the year ending 31st March 2020:Balance Sheet as on 1st April 2019LiabilitiesAmount (₹)AssetsAmount (₹)Capital fund40,000Mach…

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Liabilities	Amount (₹)	Assets	Amount (₹)
Capital fund	40,000	Machinery	10,000
Outstanding Expenses:		Furniture	20,000
Wages	8,000	Government Bonds	6,500
Electricity	7,000	Outstanding Subscription	8,500
Stationery	1,000	Cash at bank	10,000
		Cash in hand	1,000
	56,000		56,000

Receipts	Amount (₹)	Payments	Amount (₹)
To Balance b/d: Cash in hand 1,000 Cash at bank 10,000	11,000	By Electricity Charges	25,000
To Subscription: 2018-2019 2,000 2019-2020 45,000 2020-2021 3,000	50,000	By Wages	22,000
To Entrance fees	28,000	By Stationery	3,000
To Other receipts	5,000	By Rent and Taxes	11,800
		By Travelling Expenses	8,000
		By Balance c/d: Cash in hand 4,000 Cash at bank 20,200	24,200
	94,000		94,000

Dr. Expenditure	Amount (₹)	Cr. Income	Amount (₹)
To Electricity Charges 25,000 Less: Outstanding (2018-19) 7,000	18,000	By Subscription 45,000 Add: Outstanding (2019-20) 3,000	48,000
To Wages 22,000 Less: Outstanding (2018-19) 8,000 Add: Outstanding (2019-20) 450	14,450	By Other receipts	5,000
To Stationery 3,000 Less: Outstanding (2018-19) 1,000	2,000	By Excess of Expenditure over Income (Deficit) transferred to Capital Fund	3,250
To Rent and Taxes	11,800
To Travelling Expenses	8,000
To Depreciation on Furniture	2,000
	56,250		56,250

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund 40,000 Add: Entrance fees 28,000 Less: Deficit 3,250	64,750	Machinery	10,000
Outstanding Wages	450	Furniture 20,000 Less: Depreciation 2,000	18,000
Subscription received in advance (2020-21)	3,000	Government Bonds	6,500
		Outstanding Subscription: 2018-19 6,500 2019-20 3,000	9,500
		Cash at bank	20,200
		Cash in hand	4,000
	68,200		68,200