Question

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

$\begin{array}{cccc}\text{Receipts}& \text{Amount}& \text{Payments}& \text{Amount}\\ & (Rs.)& & (Rs.)\\ \text{To Balance b/d}& 77,000& \text{By Salaries}& 30,000\\ \text{To Subscription (Outstanding of 2017}& 1,15,000& \text{By Rent}& 25,000\\ \text{Rs. 20,000 and advance of 2019 Rs 5,000)}& & \text{By Printing and Stationery}& \text{18,000}\\ \text{To Sale of Periodicals}& 2,000& \text{By Electricity}& 15,000\\ & & \text{By Periodicals}& 18,000\\ & & \text{By Sports Equipment}& 50,000\\ & & \text{By Advertisements}& 2,000\\ & & \text{By Refreshments}& 10,000\\ & & \text{By Balance c/d}& 26,000\\ & 1,94,000& & 1,94,000\end{array}$

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

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

(c) Electricity charges worth Rs. 3,000 are prepaid.

(d) Assets as on 01-04-2017 : Sports Equipment Rs. 80,000; 6% Fixed Deposit worth Rs. 50,000.

(e) Depreciation @ 10 % p.a on Sports Equipment.

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

$$\begin{array}{cccccc}\text{Expenditure}& & \text{Amount}& \text{Income}& & \text{Amount}\\ & & \text{Rs.}& & & \text{Rs.}\\ \text{To Salaries}& & \text{30,000}& \text{By Subscription}& \text{1,15,000}& \\ \text{To Rent}& \text{25,000}& & \text{(-) Advance}& (5,000)& \\ \text{+Outstanding}& \underset{–}{\text{5,000}}& 30,000& \text{(-) Outstanding of 2017}& (20,000)& \\ \text{To Electricity}& \text{15,000}& & \text{+ Outstanding of 2018}& \underset{–}{(10,000)}& 1,00,000\\ \text{(-)Prepaid}& \underset{–}{(3,000)}& 12,000& \text{By Interest Accrued}& & 3,000\\ \text{To Printing and Stationery}& & 18,000& \text{By Sale of Periodicals}& & 2,000\\ \text{To Periodicals}& & 18,000& \text{By Excess of Expenditure}& & \\ \text{To Advertisements}& & 2,000& \text{Over Income(Deficit)}& & 28,000\\ \text{To Refreshments}& & 10,000& & & \\ \text{To Depreciation on Sports}& & & & & \\ \text{Equipment(10\% on 1,30,000)}& & 13,000& & & \\ & \text{Total}& \text{1,33,000}& & \text{Total}& \text{1,33,000}\end{array}$$