Question

From the following particulars, prepare Income and Expenditure account:

Details	Amount (RS)
Fees collected, including Rs 80,000 on account of the previous year	520000
Fees for the year outstanding	30000
Salary paid, including Rs 5,000 on account of the previous year	68000
Salary outstanding at the end of the year	3000
Entertainment expenses	8000
Tournament expenses	25000
Meeting Expenses	18000
Traveling Expenses	7000
Purchase of Books and Periodicals, including Rs 31,000 for purchase of Books	40000
Rent	15000
Postage, telegrams and telephones	6000
Printing and Stationery	18000
Donations received	25000

Answer 1

Income and Expenditure Account

Dr.                                                                           Cr.

Expenditure		Amount (Rs)	Income		Amount (Rs)
Salaries	68000	66000	Fees Collected	520000	470000
Less : Previous year's Outstanding	(5000)		Less :  Previous year's outsranding	(80000)
	63000			440000
Add: Current year's outstanding	3000		Add : Current year outstanding	30000
Entertainment Expenses		8000	Donations		25000
Tournament Expenses		25000
Meeting Expenses		18000
Traveling Expenses		7000
Purchases of Periodicals (40,000 – 31,000)		9000
Postage, Telegrams and Telephone’s		6000
Rent		15000
Printing and Stationery		18000
Surplus (Excess of Income over Expenditure)		323000
		495000			495000

NOTE: As per the solution, Excess of Income over Expenditure is Rs 3,23,000; however, as per the book, it is Rs 3,07,000.