Question

From the following items of Receipts and Payments A/c of South India Club, prepare an Income and Expenditure Account for the year ended 31.3.2010: 

Particulars	Rs
Salaries Paid	55,000
Lighting expenses	5,500
Stationery (Including Rs 400 for the previous year)	4,000
Subscription received (including 1,000 received in advance	44,000
and Rs 750 for the previous year)
Net Proceeds of Refreshment Room	30,000
Miscellaneous Expenses	3,000
Interest paid on loan for three months	1,200
Rent and Rates (Including Rs 500 pre-paid)	4,500
Lockers Rent received

Additional Information:

Subscriptions in arrears on 31.3.2010 were Rs 4,700 and nine months 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			55,000	Subscription		44,000
Lighting Expenses			5,500	Less: Advance for 2010-11		(1,000)
Stationery		4,000		Less: Arrears for 2008-09		(750)
Less: Outstanding for 2008-09		(400)	3,600			42,250
Miscellaneous Expenses			3,000	Add: Arrears 2009-10		4,700	46,950
Interest on Loan		1,200		Net Proceeds from Refreshment Room			30,000
Add: Outstanding Interest on Loan		3,600	4,800	Locker Rent			4,900
Rent and Rates		4,500
Less: Prepaid		(500)	4,000
Surplus			5,950
			81,850				81,850