Question

From the following Receipts and Payments Account of Jai Bharat Music Club for the year ended 31- 03-2019 and the additional information, prepare Income and Expenditure Account for the year ended 31-3-2019.

Receipts and Payments Account of Shyam Music Club for the year ended 31.3.2019
Receipts	Amount (₹)	Amount (₹)	Payments	Amount (₹)	Amount (₹)
To Balance b/d		12,500	By Honorarium		35,500
Cash	5,000		By Musical Instruments		20,000
Bank	7,500		By Electricity Bill		10,000
To Subscription		1,15,000	By Balance c/d		1,08,250
2017-18	6,500		Cash	30,500
2018-19	1,00,000		Bank	20,500
2019-20	8,500		Fixed Deposit @ 7% p.a. on 31.3.2019)	57,500
To Locker Rent		4,000
To Sale of old furniture (book value rupees 5,000)		7,500
To Building Fund Donations		22,500
To Life Membership Fee		9,750
To Admission Fee		2,500
		1,73,750			1,73,750

Additional Information:

1. The Club had 300 members each paying an annual subscription of ₹ 500.
2. Musical instruments were purchased on 1-10-2018. Depreciation @ 10% p.a. was to be provided on musical instruments.

Answer 1

Jai Bharat Music Club
Dr.	Income and Expenditure Account For the year ending 31st March, 2019			Cr.
Expenditure	Amount (₹)	Income	Amount (₹)	Amount (₹)
To Harmonium	35,500	By Subscription received for the year	1,00,000	1,50,000
To Depreciation in Musical Instruments (20,000 × 10% × 6/12)	1,000	Add: Outstanding for current year	50,000
To Electricity Bill	10,000	By Locker Rent		4,000
To Surplus (Excess of income over expenditure)	1,12,500	By Profit on Sale of Furniture		2,500
		By Admission Fee		2,500
	1,59,000			1,59,000