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Model Test Papers M.503

13. INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Expenditure ` Income `
To Salary 90,000 By Subscriptions 2,20,000
Add: Outstanding Salary 40,000 1,30,000 Add: Outstanding for 2017–18 25,000* 2,45,000
To Newspapers and Magazines 20,000 By Sale of Old Newspapers and Magazines 15,000
To Rent 70,000 By Government Grants 2,00,000
Add: Outstanding Rent 10,000 80,000 By Surplus from Entertainment 20,000
To Loss on Sale of Furniture 30,000 By Accrued Interest on Fixed Deposit 30,000
(` 90,000 – ` 60,000) (` 2,50,000 × 12/100)
To Surplus 2,50,000
(i.e., excess of Income over Expenditure)
5,10,000 5,10,000

`
* Subscription Outstanding as on 31st March, 2017 20,000
Less: Subscription Received during the year for 2016–17 15,000
Subscription still outstanding for 2016–17 5,000

Subscription Outstanding as on 31st March, 2018 30,000
Less: Subscription still Outstanding for 2016–17 5,000
Subscription Outstanding for 2017–18 25,000
Calculation of Capital Fund on 31st March, 2017:
BALANCE SHEET as on 31st March, 2017
Liabilities ` Assets `
Capital Fund (Balancing Figure) 4,50,000 Cash in Hand 50,000
Outstanding Subscriptions 20,000
Furniture 2,00,000
Books 1,80,000
4,50,000 4,50,000
14.
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets—Transfer: By Provision for Doubtful Debts A/c 2,000
Sundry Debtors 22,000 By Employees’ Provident Fund A/c 8,000
Stock 12,000 By Sundry Creditors A/c 10,000
Plant and Machinery 30,000 By Investment Fluctuation Reserve A/c 4,000
Land and Building 45,000 By X’s Capital A/c—Plant and Machinery 16,000
Investments 35,000 1,44,000 By Bank A/c—Assets Realised:
To Bank A/c (Employees’ Provident Fund) 8,000 Machineries (Remaining) 9,000
To Bank A/c (Sundry Creditors) 7,200 Land and Building 42,000
Sundry Debtors (WN) 18,900 69,900
By Y’s Capital A/c (Investments taken) 28,000
By Loss transferred to:
X’s Capital A/c 10,650
Y’s Capital A/c 6,390
Z’s Capital A/c 4,260 21,300
1,59,200 1,59,200