Question

As at 31st March 2015 the following balances have been extracted from the books of the Indian chartered accountants recreation club and you are asked to prepare (1) Trading account for ascertaining gross profit derived from running restaurant and dining room and (2) Income and expenditure account for the year ended 31st March 2015 (3) and a balance sheet as at that date. Debit balance:- stock in hand = 1170 , purchase =24660 , Dining room =32370,rent = 10470 , wages =18690 , repair and renewals = 5400, fuel and light =5280, miscellaneous expenses =4050, cash in hand =560, cash at bank =2760, fixed deposit =8500, sundry debtors =2250 ,China glass= 600, billiard table=2070, fixtures and fittings =870, furniture =4140, club premises = 30000. credit balance :- Receipts Dining room =87660, subscription =9450, billiards receipts =7300,sundry receipt =410, interest on fixed deposit =270, sundry creditors =5310, grant from institute= 42000, income and expenditure account (1.4.14) = 1380, on March 31,2014 stock of restaurant SCERT KERALA TEXTBOOKS SOLUTIONS of Rs. 900 and Rs. 60 respectively. provide depreciationso Rs. 60 on fixtures and fittings, Rs. 390 on billiard table and Rs . 560 on furniture.​

Answer 1

Explanation:

Income and expenditure account for the year ended 31st March 2015 (3) and a balance sheet as at that date. Debit balance:- stock in hand = 1170 , purchase =24660 , Dining room =32370,rent = 10470 , wages =18690 , repair and renewals = 5400, fuel and light =5280, miscellaneous expenses =4050, cash in hand.