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 |
Income and Expenditure Account |
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Dr. |
|
Cr. |
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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 |
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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 |
|||
|
|
|
|
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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.