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From the Given Receipts and Payments Account and Additional Information of Shine Club for the Year Ended 31st March, 2019, Prepare Income and Expenditure Account for the Year Ended 31st March, 2019. - Accountancy

Ledger

From the given Receipts and Payments Account and additional information of Shine Club for the year ended 31st March 2019, prepare Income and Expenditure Account for the year ended 31st March 2019.

Receipts and Payments Account of Shine Club for the year ended 31st March, 2019

Receipts

Amount ()

Payments

Amount ()

To balance b/d

50,000

By Furniture & equipments

1,22,000

To donations

45,000

By Salaries

32,000

To subscriptions :

 

By balance c/d

13,400

2017-18   - 1,600

 

 

 

2018-19  - 60,000

 

 

 

2019-20   - 5,000

66,600

 

 

To interest received

5,800

 

 

 

1,67,400

 

1,67,400

Additional Information :
(i) Furniture and equipments were purchased on 1-10-2018. Depreciation @ 10% p.a. was to be provided on furniture and equipments.
(ii) Subscriptions in arrears for the year 2018-19 were ₹ 2,000
(iii) Outstanding salary ₹ 6,000.

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Solution

In the books of Shine Club
Income & Expenditure A/c for the year ended 31st March 2019

Dr.   Cr.
Expenditure
Amount(₹)
Income Amount(₹)
To Depreciation on Furniture A/c
6,100
 
By Donations 45,000
(1,22,000 × 10/100 × 6/12)
 
By Subscriptions - 60,000   
To Salaries                    32,000
 
Add: Outstanding - 2,000  62,000
Add: Outstanding Salary 6000
 
38,000
By Interest Received 5,800
To Surplus transferred to Capital Fund
68,700
   
 
1,12,800
 

1,12,800

Concept: Preparation of Income and Expenditure Account
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