Question

60) The following is the Receipts & Payments Account of Queen's club for the year ended March 31" 2008.
Dr.
Cr.
Receipts & Payments A/c
Receipts
Payments
To Balance b/d
1,82,000 By Salaries
1,66,000
To Subscriptions
1,80,000 By Stationary
32,000
To Tournament Fund
1,64,000 By Rent
48,000
To Interest investments)
65,000 By Telephone Exp.
8,000
To Donations
1,12,000 By Sports Material
78,000
To Sale-concert tickets
2,47,000 By Investment 6%
5,00,000
By Misc. Exp
24,000
By Concert Exp.
58,000
By Balance c/d
36,000
9,50,000
9,50,000
Additional Information:
1
a) Subscription includes 12,000 for 2006-07 and 18,000 for 2008-09.
of stock
Renchen
b) Stock of stationery-on 31st March, 2007 and 2008 was 7,200 & 5,400 respectively do silny srok
c) Stock of Sports material at the beginning and end of the year was 12,000 and 21,000 respectively
d) Rent includes 4,000 paid for March, 2007. Rent for March, 2008 is outstanding.
e) Telephone expenses include 3,000 as quarterly rent up to May 31st 2008.
1) The value of building as on 31st March 2007, was * 8,00,000 and you are required to write off
depreciation at 10%
g) The value of investment on 31st March, 2007 was ? 10,00,000 and the club made similar additional
investment during the year on 1" October 2007.
You are required to prepare the Income & Expenditure Account of the club for the year ended March 31"
2008

Answer 1

Answer:

Here Is the answer

Explanation:

The answer is in the pics

Answer 2

Answer:

The income and expenditure account exists framed by the non-trading entities to define surplus or deficit of income over expenditures for a certain time frame.

Explanation:

The income and expenditure account exists framed by the non-trading entities to define surplus or deficit of income over expenditures for a certain time frame. The accumulated or accrual notion of accounting is rigidly pursued while designing income and expenditure a/c of non-trading concerns.

Income & Expenditure Account of the club for the year ended March 31"

2008 is as follows,

Working note

Calculation of interest on investment

Interest on Investment$\left(10,00,000 \times \frac{6}{100}\right)$ = 60000

(+) Interest on Additional Investment$\left(5,00,000 \times \frac{6}{100} \times \frac{6}{12}\right)$ = 15000

(-) Interest Received during the Year (65,000)

Amount of Accrued Interest 10,000

#SPJ3