The Receipt and Payment Account of Harimohan charitable institution is given:
Receipt and Payment Account for the year ending March 31, 2015

Prepare the Income and Expenditure Account for the Year ended on March 31, 2015 after considering the following:
(i) It was decided to treat Fifty per cent of the amount received on account of Legacies and Donations as income.
(ii) Liabilities to be provided for are:
Rent Rs. 800, Salaries Rs. 1,200, advertisement Rs. 200.
(iii) Rs. 2,000 due for interest on investment was not actually received.

Answer

Excess of income over Expenditure Rs. 1,500.