Question

From the given Receipts and Payments Account and additional information of Shine Club for the year ended 31^st March 2019, prepare Income and Expenditure Account for the year ended 31^st March 2019.

Receipts and Payments Account of Shine Club for the year ended 31^st March, 2019

Receipts	Amount (₹)	Payments	Amount (₹)
To balance b/d	50,000	By Furniture & equipments	1,22,000
To donations	45,000	By Salaries	32,000
To subscriptions :		By balance c/d	13,400
2017-18   - 1,600
2018-19  - 60,000
2019-20   - 5,000	66,600
To interest received	5,800
	1,67,400		1,67,400

Additional Information :
(i) Furniture and equipments were purchased on 1-10-2018. Depreciation @ 10% p.a. was to be provided on furniture and equipments.
(ii) Subscriptions in arrears for the year 2018-19 were ₹ 2,000
(iii) Outstanding salary ₹ 6,000.

Answer 1

In the books of Shine Club
Income & Expenditure A/c for the year ended 31^st March 2019

Dr.			Cr.
Expenditure	Amount(₹)	Income	Amount(₹)
To Depreciation on Furniture A/c	6,100	By Donations	45,000
(1,22,000 × 10/100 × 6/12)		By Subscriptions - 60,000
To Salaries                    32,000		Add: Outstanding - 2,000	62,000
Add: Outstanding Salary 6000	38,000	By Interest Received	5,800
To Surplus transferred to Capital Fund	68,700
	1,12,800		1,12,800