Prepare income and Expenditure account from the following Receipts and Payments Account of Delhi Nursing socity for the year ended 31st March 2019,

Donation of Rs 10,000 received for Building Fund was wrongly include in the Subscriptions Account A bill of Medicines purchased during the year amounted to Rs. 12,800 was outstanding . Goverment Grant is not for a specific purpose.

Answer

Deficit i.e., Excess of Expenditure over income -Rs 55,100

Explanation

1. Donation of Rs 10,000 for Builiding Fund being a Specific Donation will be shown on the Liabilities side of the Balance Sheet hence will not be included in income and Expenditure Account.
2. Goverments Grant being not for specific purpose will be shown in icome and Expenditure Account