Question

how will u deal with the following items while preparing income & expenditure account for the year ending march 2016 in respect of xyz club

particulars 31-12-15 31-12-16
outstanding
locker rent =6000 8000

advance loker = 1000 5000
rent

locker rent recieved during the year 2015 -16 = 75000​

Answer 1

Given data:

• Oustanding locker rent at the beginning [31 - 12 - 15] = Rs 6,000
• Outstanding locker rent at the end [31 - 12 - 16]= Rs 8,000
• Advance locker rent at the beginning [31 - 12 - 15] = Rs 1,000
• Advance locker rent at the end [31 - 12 - 16] = Rs 5,000
• Locker rent received during the year = Rs 75,000

To find: The total amount of locker rent to be shown in the Income and Expenditure A/c.

Answer:

The formula to calculate the adjustments of locker rent is as follows:

Total locker rent = Locker rent received during the year + Outstanding locker rent at the end + Advance locker rent at the beginning - Outstanding locker rent at the beginning - Advance locker rent at the end

Substituting the values in the formula,

Total locker rent = Rs 75,000 + Rs 8,000 + Rs 1,000 - Rs 6,000 - Rs 5,000 = Rs 73,000

Therefore, the total amount of locker rent to be shown in the Income and Expenditure A/c is Rs 73,000.