Question

From the following Receipts and Payments Account and additional information provided by Ramanath Club, Prepare Income and Expenditure Account for the year ending on 31st March 2021.

Receipts and Payments Account for the year ending 31st March, 2021
Receipts	Amount (₹)	Payments		Amount(₹)
To Balance b/d	48,000	By Salaries and Wages:
To Subscription	95,000	2019-20	10,600
To Entrance Fee	1,56,000	2020-21	1,03,200	1,13,800
To Locker rent	50,000	By Sundry expenses		47,000
To Interest on 8% govt. Securities	5,400	By Refreshment expenses		60,400
To Revenue from refreshment	52,000	By Telephone bill		5,000
To Sale of old newspapers	4,600	By Rent & Rates		24,000
To Sale of furniture (Book value: ₹ 11,000)	12,000	By Library Book		25,000
		By 8% Govt. Securities		30,000
		By Honorarium to Secretary		5,000
		By Balance c/d		1,12,800
	4,23,000			4,23,000

Additional Information:

1. Subscription received during the year includes ₹ 25,000 as donation for Building.
2. Telephone bill unpaid as on March 31, 2020, was ₹ 4,000 and on March 31, 2021, ₹ 2,600.
3. Value of 8% Government Securities on March 31, 2020, was ₹ 80,000.
4. Additional Government Securities worth ₹ 30,000 were purchased on March 31, 2021.

Answer 1

Income & Expenditure A/c
Dr.            For the year ended March 31, 2021              Cr.
Expenditure		₹	Income		₹
To Salary and Wages		1,03,200	By Subscription	95,000
To Sundry Expenses		47,000	Less: Donations for Building	25,000	70,000
To Refreshment Expense		60,400	By Entrance Fee		1,56,000
To Telephone Bill	5,000		By Locker Rent		50,000
Add : O/S for 2020-21	2,600		By Interest on 8% Govt. Securities	5,400
Less : O/S for 2019-20	4,000	3,600	Add: Accrued Interest	1,000	6,400
To Rent and Rates		24,000	By Revenue from Refreshment		52,000
To Honorarium to Secretary		5,000	By Sale of old Newspapers		4,600
To Surplus(Excess of Income over Expenditure)		5,000	By Profit on Sale of Furniture		1,000
		3,40,000			3,40,000