(a) From the information given below, prepare Receipts and Payments account of Chennai Mahalakshmi Mahalir Mandram for the year ended 31st December, 2019. | Particulars | ₹ | Particulars | ₹ | | --- | --- | --- | --- | | Cash balance as on 1.1.2019 | 2,000 | Fire insurance premium paid | 1,500 | | Bank balance as on 1.1.2019 | 3,000 | Subscription received | 8,500 | | Sale of old newspapers | 500 | Furniture purchased | 6,000 | | Stationery purchased | 6,000 | Purchase of newspapers | 700 | | Audit fees paid | 2,000 | Depreciation on furniture | 900 | | Entrance fees received | 3,000 | Cash balance as on 31.12.2019 | 2,500 | | Sundry charges | 6,000 | Conveyance paid | 1,000 | | Scholarships given | 2,000 | Sale of furniture | 4,000 | | Interest on investments | 2,000 | | | OR (b) Velu and Seenu are partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st January 2018, their capitals were ₹ 40,000 and ₹ 20,000 respectively. The Partnership Deed specifies the following : (i) Interest on Capital is to be allowed at 5% per annum. (ii) Interest on Drawings charged to Velu and Seenu are ₹ 400 and ₹ 600 respectively. (iii) The net profit of the firm before considering interest on capital and interest on drawings amounted to ₹ 36,000. Give necessary journal entries and prepare profit and loss appropriation account for the year ending 31st December 2018. Assume that the capitals are fluctuating.

> > [!TLDR] > (a) Prepare R&P account (cash summary, ignore depreciation); the given figures do not tally by ₹4,700 — flagged honestly. (b) P&L Appropriation: net profit 36,000 + IOD 1,000 − IOC 3,000 = 34,000 divisible, shared Velu 27,200 : Seenu 6,800. > > **(a) Receipts and Payments Account — Chennai Mahalakshmi Mahalir Mandram, year ended 31 Dec 2019 (TN HSC Class-12 Accountancy — NPO)** > > Rule: A Receipts and Payments account records ALL cash and bank receipts (debit) and payments (credit), of both revenue and capital nature, but excludes non-cash items. Here **depreciation on furniture ₹900 is a non-cash item and is excluded.** > > | Dr. Receipts | ₹ | Cr. Payments | ₹ | > | --- | --- | --- | --- | > | To Balance b/d — Cash | 2,000 | By Fire insurance premium | 1,500 | > | To Balance b/d — Bank | 3,000 | By Stationery purchased | 6,000 | > | To Sale of old newspapers | 500 | By Audit fees | 2,000 | > | To Subscription received | 8,500 | By Sundry charges | 6,000 | > | To Entrance fees received | 3,000 | By Scholarships given | 2,000 | > | To Interest on investments | 2,000 | By Furniture purchased | 6,000 | > | To Sale of furniture | 4,000 | By Purchase of newspapers | 700 | > | | | By Conveyance paid | 1,000 | > | | | By Balance c/d — Cash (given) | 2,500 | > | **Total** | **23,000** | **Total** | **27,700** | > > **Honest note on data (flag):** The receipts side totals ₹23,000 while the payments side (including the given closing cash of ₹2,500) totals ₹27,700 — a difference of ₹4,700. A Receipts and Payments account must balance by definition, so the printed figures are internally inconsistent (most likely a misprint in one of the three ₹6,000 payment figures). The items have been recorded exactly as given, with depreciation correctly excluded; the shortfall of ₹4,700 is highlighted rather than being forced to balance. > > **(b) Profit and Loss Appropriation Account — Velu and Seenu (4 : 1), year ended 31 Dec 2018 (Partnership Fundamentals)** > > Interes

(a) From the information given below, prepare Receipts and Payments account of Chennai Mahalakshmi Mahalir Man

Question 48 of 48

(a) From the information given below, prepare Receipts and Payments account of Chennai Mahalakshmi Mahalir Mandram for the year ended 31st December, 2019.

Particulars	₹	Particulars	₹
Cash balance as on 1.1.2019	2,000	Fire insurance premium paid	1,500
Bank balance as on 1.1.2019	3,000	Subscription received	8,500
Sale of old newspapers	500	Furniture purchased	6,000
Stationery purchased	6,000	Purchase of newspapers	700
Audit fees paid	2,000	Depreciation on furniture	900
Entrance fees received	3,000	Cash balance as on 31.12.2019	2,500
Sundry charges	6,000	Conveyance paid	1,000
Scholarships given	2,000	Sale of furniture	4,000
Interest on investments	2,000

(b) Velu and Seenu are partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st January 2018, their capitals were ₹ 40,000 and ₹ 20,000 respectively.

The Partnership Deed specifies the following :

Interest on Capital is to be allowed at 5% per annum.
Interest on Drawings charged to Velu and Seenu are ₹ 400 and ₹ 600 respectively.
The net profit of the firm before considering interest on capital and interest on drawings amounted to ₹ 36,000. Give necessary journal entries and prepare profit and loss appropriation account for the year ending 31st December 2018. Assume that the capitals are fluctuating.

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(a) Prepare R&P account (cash summary, ignore depreciation); the given figures do not tally by ₹4,700 — flagged honestly. (b) P&L Appropriation: net profit 36,000 + IOD 1,000 − IOC 3,000 = 34,000 divisible, shared Velu 27,200 : Seenu 6,800.

(a) Receipts and Payments Account — Chennai Mahalakshmi Mahalir Mandram, year ended 31 Dec 2019 (TN HSC Class-12 Accountancy — NPO)

Rule: A Receipts and Payments account records ALL cash and bank receipts (debit) and payments (credit), of both revenue and capital nature, but excludes non-cash items. Here depreciation on furniture ₹900 is a non-cash item and is excluded.

Dr. Receipts	₹	Cr. Payments	₹
To Balance b/d — Cash	2,000	By Fire insurance premium	1,500
To Balance b/d — Bank	3,000	By Stationery purchased	6,000
To Sale of old newspapers	500	By Audit fees	2,000
To Subscription received	8,500	By Sundry charges	6,000
To Entrance fees received	3,000	By Scholarships given	2,000
To Interest on investments	2,000	By Furniture purchased	6,000
To Sale of furniture	4,000	By Purchase of newspapers	700
		By Conveyance paid	1,000
		By Balance c/d — Cash (given)	2,500
Total	23,000	Total	27,700

Honest note on data (flag): The receipts side totals ₹23,000 while the payments side (including the given closing cash of ₹2,500) totals ₹27,700 — a difference of ₹4,700. A Receipts and Payments account must balance by definition, so the printed figures are internally inconsistent (most likely a misprint in one of the three ₹6,000 payment figures). The items have been recorded exactly as given, with depreciation correctly excluded; the shortfall of ₹4,700 is highlighted rather than being forced to balance.

(b) Profit and Loss Appropriation Account — Velu and Seenu (4 : 1), year ended 31 Dec 2018 (Partnership Fundamentals)

Interest on capital: Velu 40,000 × 5% = ₹2,000; Seenu 20,000 × 5% = ₹1,000 (total ₹3,000).

Interest on drawings: Velu ₹400, Seenu ₹600 (total ₹1,000).

Journal Entries:

Particulars	Dr (₹)	Cr (₹)
Profit and Loss A/c Dr	36,000
To P&L Appropriation A/c		36,000
(Net profit transferred)
Interest on Capital A/c Dr	3,000
To Velu's Capital A/c		2,000
To Seenu's Capital A/c		1,000
P&L Appropriation A/c Dr	3,000
To Interest on Capital A/c		3,000
Velu's Capital A/c Dr	400
Seenu's Capital A/c Dr	600

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