DOUBT: in NPO problem it is given in quetion in receipt and payment account that repair for period ended 31 dec 2010 that repair to equipment RS 50,000. and in additional information is also given that following detail
| 1jan,2010 | DEC 31,2010 | |
|
cheque unpresented being payment for repairs |
300 | 260 |
what is treatment of above in preparing income and expenditure account for the year ended 31dec 2010.kindly explain me bcoz iam really confused for this
harish ragav
(student-IPCC)
(407 Points)
Replied 03 May 2014
hi... pls take a screen shot of that question and post it here....
Chandan Singh
(Professional)
(270 Points)
Replied 05 May 2014
Dear frnd !!!
R&P = show the cash basis that means 50000 paid for repair.
I&E = shown the all the exp. on due basis for that year..
that's why we should shown in I&E 50000+260-300=49960
Ankush sharma
(Auditor Article Assistant)
(816 Points)
Replied 05 May 2014
| Originally posted by : Knowledge gainer | ||
 |
Hi ankush thankyou for your suggestion.Your solution is ok. kindly suggest me regarding that Q has asked to prepare I&E a/c then this year expenditure is already incurred. we should debit entire Rs50000,why U have done calculation for entire additional information |
 |
actually receipts and payment account shows the amount paid on expenditure whether it is for previous year or next year, in this question amount paid is 50,000 which includes 300 paid for the last year so 300 will be deducted and 260 amount is currently not paid in this year so it will be added as O/S for current year.
300 will be shown as o/s balance in SOA
260 will showns as o/s balance in Balance sheet
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