Question

From the following Receipts and Payments Account of Vandana Music Club for the year ended 31^st March, 2019 and additional information. Prepare Income and Expenditure Account for the year ended 31-03-2019.

Receipts and Payments Account of Vandana Music Club for the year ended 31-03-2019
Receipts	Amount (₹)	Amount (₹)	Payments	Amount (₹)	Amount (₹)
To Balance b/d		50,000	By Honorarium		1,42,000
Cash	20,000		By Musical Instruments		70,000
Bank	30,000		By Electricity Bill		40,000
To Subscriptions:		4,60,000	By Balance c/d		4,43,000
2017-18	13,000		Cash	22,000
2018-19	4,00,000		Bank	1,91,000
2019-20	47,000		Fixed deposit
To Locker Rent		30,000	@ 7% p.a. on 31.3.2019	2,30,000
To Sale of Old furniture (book value ₹ 12,000)		16,000
To Building Fund Donation		38,000
To Life Membership Fees		91,000
To Entrance Fees		10,000
		6,95,000			6,95,000

Additional Information:

The Club had 450 members each paying an annual subscription of ₹ 1,000. Musical Instruments were purchased on 1-10-2018. Depreciation @ 20% pa. was to be charged on Musical Instruments.

Answer 1

Vandana Music Club
Dr.	Income and Expenditure Account For the year ending 31st March, 2019			Cr.
Expenditure	Amount (₹)	Income	Amount (₹)	Amount (₹)
To Honorarium	1,42,000	By Subscriptions	4,00,000	4,50,000
To Depreciation on Musical Instruments	7,000	Add: Outstanding Subscription for 2018-19	50,000
To Electricity Bill	40,000	By Locker Rent		30,000
To Surplus (excess of Income over Expenditure)	3,05,000	By Profit on sale of old furniture		4,000
		By Entrance Fees		10,000
	4,94,000			4,94,000