Question

From the following informations, prepare the Income and

Expenditure Account for the year ending 31st March 2019 :

Fees collected 3,00,000

Salary paid 2,00,000

Tournament expenses 16,000

Travelling Expenses 17,000

Stationary Expenses 12,000

Rent paid 10,000

Postage and Telephone expenses 8,000

Purchase of Books 18,000
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Answer 1

Answer:

Income and Expenditure Account for the year ending 31st march 2019

Answer 2

Answer:

$\sf Income \: and \: Expenditure \: ac \: is \: in \: the \\ \sf \: attachment..\: Go \: Through \: it$

Here, All are expenses except Fees collected.

Fees Collected is the income to the firm. And all are expenses to firm.

Income And Expenditure account :

Not - for profit organizations prepare income and expenditure ac which is similar to a profit and loss ac of trading concern. It is a nominal ac and is debited with all Expenses or losses and credited with all incomes and gains.

The result of income and expenditure ac is Surplus or deficit to firm.

The surplus has to be either added to Capital fund or can be utilised in the manner provided in the specific provisions of such organisation and deficit decreases the capital fund.