Question

Following is the Receipts and Payments Account of You Bee Forty Club for the year ended 31st March, 2018:
Additional information:
(a) Outstanding Subscriptions for the year ended 31st March, 2018 – ​₹ 55,000.
(b) Outstanding Salaries and Wages – ₹ 40,000.
(c) Depreciate Sports Equipments by 25%.
Prepare Income and Expenditure Account of the club from the above particulars.

Answer 1

Calculating the Surplus:

Surplus= Total Income- Total expenditure

          = 5,35,000-4,41,000

          =94,000

Explanation:

Depreciation= 3,40,000×25%

                   =85,000