Question

32.Following is the receipt and Payment Account of a club for the year ended 31st March, 2020 Receipts ₹ Payments ₹ To Bal B/d 75,000 By Salaries 22,000 To Subscriptions: By Office Expenses 8,000 2018-19 35,000 By Sports Equipment 2019-20 9,50,000 (Purchased on 1st October 2019) 6,00,000 2020-21 55,000 10,40,000 By Telephone Charges 12,000 To Donations 90,000 By Electricity Charges 12,000 To Entrance Fees 60,000 By Travelling Expenses 6,000 To Locker Rent 20,000 By 10% Fixed deposits To Donation for Building 1,50,000 (Made on 1st July,2019) 7,00,000 By Balance C/d 69,000 14,35,000
14,35,000 Additional Information: o Outstanding subscription for 2019-20 ₹80,000. o Outstanding salaries as on 1st April, 2019 were ₹2,000 and as at 31st March, 2020 were ₹4,000. o Locker Rent rate is ₹2,000 per month. o Depreciation on sports equipment @10% p.a. Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2020.​

Answer 1

Answer: The Income and Expenditure A/c image is attached in the answer.

Adjustments

• During the Year, the Outstanding Subscription of Rs.80000 for the year will be added to the subscription in the income and expenditure account.
• Interest on Fixed Deposit is calculated for 9 months @10%p.a.
• Locker rent was outstanding Rs.4000 during the year.
• Salaries Outstandings for the previous year are subtracted and added for the current year.
• Depreciation of Sports Equipment was Calculated for 6 months @10p.a.

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