Practical Questions on Receipt & Payment Account
Here are some questions and their solutions related to preparation of Receipt and Payment A/c:
Illustration 1:
From the following information of GG Organisation, calculate cash at bank at the end of the year and prepare Receipts and Payment Account for the year ending 2021-22:
1. Balance at the beginning of the year,1-4-2021:
- Cash at Bank ₹43,200
- Cash in Hand ₹17,940
2. Subscriptions received ₹6,750
3. Sundry payments:
- Rent and Taxes ₹1,900
- Printing and Stationery ₹3,160
- Salaries ₹14,700
4. Sundry receipts:
- Interest on Investment ₹5,500
- Sale of Furniture ₹11,400
- Bank Interest ₹800
5. Entrance fees received for the year 2021-22 ₹9,700
6. Balance at the end of the year,31-3-2022:
- Cash at Bank ?
- Cash in Hand ₹21,870
Solution:
Illustration 2:
From the following information of GFG Club, prepare Receipts and Payment Account for the year ending on 31st March, 2022. Cash at Bank at the year end was ₹1,97,300. Find Cash in Hand at the year ending:
1. Balance on 1st April,2021:
- Cash at Bank ₹83,200
- Cash in Hand ₹27,000
2. Subscriptions received ₹64,200 (including ₹11,100 for 2020-21 and ₹16,300 for 2022-23)
3. Special Subscriptions for Governor’s Party ₹49,000
4. Sundry Receipts:
- Locker rent ₹31,500
- Sale of Old Newspapers ₹1,750
- Profit from Entertainment ₹22,800
- Rent realized from Club Hall ₹35,500
- Interest received from Investment ₹8,000
5. Sundry Payments:
- Salaries ₹28,000 (₹6,500 includes for 2020-21)
- Postage and Stationery ₹2,020
- Electricity charges ₹1,765
- Purchase of Library Books ₹30,200
- Expenses on Dance and Socials ₹1,980
6. Life Membership Fees ₹12,630 and Entrance fees ₹1,590 of the club
7. Investments purchased by the Organisation worth ₹20,000
8. Honorarium paid by the Organisation ₹3,050
Solution:
Illustration 3:
Prepare Receipt and Payment Account of Beginner Organisation from the following information given:
1. Opening balance on 1.4,2021
- Cash in Hand ₹36,400
- Bank overdraft ₹9,020
2. Subscriptions:
- 2020-21 ₹32,000
- 2021-22 ₹1,15,500
- 2022-23 ₹17,500
3. Expenses made by Organisations during the year ₹30,900(including ₹1,600 salary unpaid on 31.3.2021 and ₹2,200 salary unpaid on 31.3.2022) for Salary,₹2,350 for Postage and Stationery,₹5,600 for Electricity charges,₹7,070 on purchase of periodicals and ₹950 on advertisement.
4. Incomes of the Organisation during the year ₹1,900 for sale of old newspaper,₹8,500 for interest on investment,₹11,000 for Donations.
5. ₹4,200, which were bad debts in the year 2019-20, realized 75% from his state this year.
6. Grants of ₹4,030 and Legacies of ₹7,770 received.
7. Purchased furniture for ₹25,555.
8. ₹28,080 received on account of donations for building.
9. The Organisation received ₹96,400 as Entrance Fees and ₹1,30,500 as Life Membership fees.
10. ₹27,00 was paid as Audit fees for this year’s audit of books of accounts and ₹18,405 for Rates and Taxes.
11. Closing Balance of Cash at Bank was ₹1,66,600.
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