Question

The Receipts and Payments Account for the year ending 31-03-2018 of the MB Club is as follows :

Dr RECEIPTS AND PAYMENTS ACCOUNT Cr

$\begin{array}{cccc}\text{Receipts}& \text{Amount}& \text{Payments}& \text{Amount}\\ & \left(\text{Rs}\right)& & \left(\text{Rs}\right)\\ \text{To Balance b/d}& 50,000& \text{By Salaries}& 20,000\\ \text{To Subscription}& 1,15,000& \text{By Rent}& 15,000\\ \text{To Sale of newspaper}& 2,000& \text{By Printing and Stationery}& 8,000\\ \text{To Interest}& 1,500& \text{By Water and Power}& 15,000\\ & & \text{By Periodicals}& 18,000\\ & & \text{By Furniture}& 50,000\\ & & \text{By Advertisements}& 2,000\\ & & \text{By Refreshments}& 10,000\\ & & \text{By Balance c/d}& 30,500\\ & 1,68,500& & 1,68,500\end{array}$

(a) Annual subscription to be received every year is Rs 1,00,000.

(b) Rent of the club for two months is pending.

(c) Salaries of Rs 2,000 are outstanding.

(d) Assets as on 01-04-2017. Furniture Rs 80,000; 6$\%$ fixed deposit worth Rs 50,000.

(e) Depreciation on Furniture @ 10$\%$ p.a. on furniture.

Prepare Income and Expenditure Account for the year ending 31-03-2018.

Answer 1

INCOME AND EXPENDITURE ACCOUNT

for the year ending 31st March, 2018

Dr Cr

$\begin{array}{cccc}\text{Expenditure}& \text{Amount}& \text{Income}& \text{Amount}\\ & \left(\text{Rs}\right)& & \left(\text{Rs}\right)\\ \text{To Salaries}20,000& & \text{By Subscription}1,15,000& \\ \text{+ Outstanding}\underset{–}{2,000}& 22,000& \text{(-) Advance}\left(\underset{–}{15,000}\right)& 1,00,000\\ \text{To Rent}15,000& & \text{By Interest}1,500& \\ \text{+ Outstanding}\underset{–}{3,000}& 18,000& \text{+ Accrued}\underset{–}{1,500}& 3,000\\ \text{To Water and Power}& 15,000& \text{By Sale of newspapers}& 2,000\\ \text{To Printing and Stationery}& 8,000& \text{By Excess of Expenditure}& \\ \text{To Periodicals}& 18,000& \text{over Income(Deficit)}& 1,000\\ \text{To Advertisements}& 2,000& & \\ \text{To Refreshments}& 10,000& & \\ \text{To Depreciation on}& & & \\ \text{Furniture(10}\%\text{on 1,30,000)}& 13,000& & \\ & 1,06,000& & 1,06,000\end{array}$