Important Points :
Interest of Investment is given in the question but value of investment is not shown in 'Receipts and Payments Account', it means this investment was purchased before the current year and was mentioned in the Balance Sheet at the beginning of the year. Therefore the value of the investement is calculated as under.Value of investments =
Illustration 8.
From the following information related to Amar Nath Charitable Society, prepare
Income and Expenditure Account for the year ended March 31, 2011.
Additional Information :
Subscription received includes `1,200 for 2011-12. The amount of subscription
outstanding on March 31, 2011 `1,000; Salaries unpaid for the year 2010-11
`400; 60% of the Donations are to be capitalized.
Solution :
Income and Expenditure Account
for the year ended on March 31, 2011
Important Points : Only 60% Donation is to be Capitalised as clear instruction is given in question, Remaining 40% Donation is to be treated as income.
CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari )
Email Id : [email protected]
