Question

From the following items of Receipts and Payments Account of Young Ladies Club, prepare an Income and Expenditure Account for the year ended 31-3-2010. 

Particulars	Amount Rs
Salaries paid	50,000
Lighting and Heating	5,000
Printing and Stationery (Including Rs 500 for the previous year)	3,500
Subscription received (Including Rs 2,000 received in advance	40,000
and Rs 5,000 for the previous year)
Net proceeds of Refreshment Room	45,000
Miscellaneous Expenses	16,000
Interest paid on Loan of half year	1,200
Rent and Rates (Including Rs 1,000 prepaid)	7,500
Locker rent received	4,500

Additional Information:   

Subscriptions in arrears on 31-3-2010 were Rs 8,000 and half year’s interest on loan was also outstanding. 

Answer 1

Income and Expenditure Account                   for the year ended March 31, 2010
Dr.							Cr.
Expenditure			Amount Rs	Income			Amount Rs
Salaries			50,000	Subscription		40,000
Lighting and Heating			5,000	Less: Subscription received in advance	2,000
Printing and Stationery		3,500		Subscription arrear previous year	5,000	(7,000)
Less: Outstanding for previous year		(500)	3,000			33,000
Miscellaneous Expenses			16,000	Add: Subscription Arrear (31.3.2010)		8,000	41,000
Interest on loan	1,200			Net proceeds of Refreshment Room			45,000
Add: Outstanding	1,200		2,400	Locker Rent Received			4,500
Rent and Rates	7,500
Less: Prepaid	(1,000)		6,500
Surplus (i.e. Excess of Income over
Expenditure)			7,600
			90,500				90,500