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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:

2. Subscriptions received ₹6,750



3. Sundry payments:

4. Sundry receipts:

5. Entrance fees received for the year 2021-22 ₹9,700

6. Balance at the end of the year,31-3-2022:

 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:

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:

5. Sundry Payments:

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

2. Subscriptions:

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:

 

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