Question

From the following Receipts and Payments Account of Shyam Music Club for the year ended 31^st March, 2019 and 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		25,000	By Honorarium		71,000
Cash	10,000		By Musical Instruments		40,000
Bank	15,000		By Electricity Bill		31,000
To Subscription		2,30,000	By Balance c/d		2,05,500
2017-18	13,000		Cash	50,000
2018-19	2,00,000		Bank	40,500
2019-20	17,000		Fixed Deposit @ 7% p.a. on. 31.3.2019)	1,15,000
To Locker Rent		8,000
To Sale of old furniture (book value ₹ 10,000)		15,000
To Building Fund Donations		45,000
To Life Membership Fee		19,500
To Administration Fee		5,000
		3,47,500			3,47,500

Additional Information:

1. The Club had 225 members each paying an annual subscription of ₹ 1,000.
2. Musical instruments were purchased on 1.10.2018. Depreciation @ 15% p.a. was to be charged on musical instruments.

Answer 1

Shyam Music Club Income and Expenditure Account For the Year Ending 31st March, 2019
Expenditure	Amount (₹)	Income	Amount (₹)	Amount (₹)
To Hanorarium	71,000	By Subscriptions	2,00,000	2,25,000
To Depreciation and Music Instruments `(40,000xx15/100xx6/12)`	3,000	By Outstanding Subscription	25,000
To Electricity Bills	31,000	By Locker Rent		8,000
To Surplus (excess of Income over Expenditure)	1,38,000	By Profit on Sales of Furniture		5,000
		By Admission Fees		5,000
	2,43,000			2,43,000