Question

From the following particulars, prepare Income and Expenditure account:

Details	Amount Rs
Fees collected, including Rs 80,000 on account of the previous year	5,20,000
Fees for the year outstanding	30,000
Salary paid , including Rs 5,000 on account of the previous year	68,000
Salary outstanding at the end of the year	3,000
Entertainment expenses	8,000
Tournament expenses	25,000
Meeting Expenses	18,000
Traveling Expenses	7,000
Purchase of Books and Periodicals, including Rs 31,000 for purchase of Books	40,000
Rent	15,000
Postage, telegrams and telephones	6,000
Printing and Stationery	18,000
Donations received	25,000

Answer 1

Income and Expenditure Account
Dr.						Cr.
Expenditure			Amount Rs	Income		Amount Rs
Salaries		68,000		Fees Collected	5,20,000
Less: Previous year's Outstanding		(5,000)		Less: Previous year's Outstanding	(80,000)
		63,000			4,40,000
Add: Current year's Outstanding		3,000	66,000	Add: Current year's Outstanding	30,000	4,70,000
Entertainment Expenses			8,000	Donations		25,000
Tournament Expenses			25,000
Meeting Expenses			18,000
Traveling Expenses			7,000
Purchases of Periodicals (40,000 − 31,000)			9,000
Postage, Telegrams and Telephone’s			6,000
Rent			15.000
Printing and Stationery			18,000
Surplus (Excess of Income over Expenditure)			3,23,000
			4,95,000			4,95,000

NOTE: As per the solution, Excess of Income over Expenditure is Rs 3,23,000; however, as per the book, it is Rs 3,07,000.