Question

From the following 'Receipts and Payments Account' of Golden Club for the year ended 31.3.2022, prepare Income and Expenditure Account:

Receipts and Payments Account of Golden Club for the year ended 31.3.2022
Receipts	Amount (₹)	Amount (₹)	Payments	Amount (₹)	Amount (₹)
Balance b/d			Honorarium		75,000
Cash	70,000	2,70,000	Stationery		15,000
Bank	2,00,000		Electricity Bill		35,000
Subscriptions		2,00,000	Rent		1,20,000
Entrance Fees		50,000	Furniture		1,80,000
Sale of old newspaper		2,000	Fixed Deposit @ 9% p.a. on 31.03.2022		1,00,000
Sale of old furniture (book value ₹ 10,000)		4,000	Balancec/d
Donations		45,000	Cash	26,000	76,000
Life membership fees		30,000	Bank	50,000
		6,01,000			6,01,000

Additional Information:

1. Club had 1750 members each paying an annual subscription of ₹ 100.
2. Furniture was purchased on 31.3.2022.

Answer 1

Dr.	In the books of Golden Club Income and Expenditure A/c for the year ended 31st March, 2022			Cr.
Expenditure	Amount (₹)	Income	Amount (₹)	Amount (₹)
To Honorarium	75,000	By Subscriptions	2,00,000	1,75,000
To Stationery	15,000	Less: Advance	25,000
To Electricity Bill	35,000	By Entrance fees		50,000
To Rent	1,20,000	By Sale of old newspaper		2,000
To Loss of Sale of Furniture	6,000	By Donations		45,000
To Excess of Income over expenditure	21,000
	2,72,000			2,72,000