Open In App

Practical Questions on Receipt & Payment Account

Last Updated : 05 Apr, 2023
Improve
Improve
Like Article
Like
Save
Share
Report

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 Geeks 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. 

Solution:

 


Like Article
Suggest improvement
Previous
Next
Share your thoughts in the comments

Similar Reads