Question

Illustration 27.
From the following Receipts and Payments Account of Dee Club for the year ending 31st March,
2019 and additional information, prepare an Income and Expenditure Account for the year ending
31st March, 2019:
Fro
an
Dr.
Cr.
Dr
₹
RE
TO
TO
RECEIPTS AND PAYMENTS ACCOUNT OF DEE CLUB for the year ending 31st March, 2019
Receipts
Z ₹ Payments
To Balance b/d
2,000
By Salaries
To Subscription:
By Printing and Stationery
2017-18
1,200
By Furniture (1.10.2018)
2018-19
49,200
By, 9% Investments
2019-20
2,300 52,700 By Balance cld
To Sale of Old Furniture
500
(Book value * 800)
To Donatiion for Prizes
43,000
To Interest on Investment
650
98,850
42,500
21,500
15,000
3,000
16,850
98,850
(i) The club has 400 members, each paying an annual subscription of 150.
(ii) Salaries paid included * 3,150 for the year 2017–18 and outstanding salaries for the year
2018–19 were * 4,250.
(iii) 9% Investments were made on 30th November, 2018. The club had a similar investment
of 8,000 at the beginning of the year.​

Answer 1

Answer:

the answer is as follows . hope it helps.

Answer 2

Answer:

Working Note - :

1. Interest accrued on Investment during 2018-19:

For full-year on Rs. 8000 = 8000 X 9/100                            720

For Four months in Rs. 3000 = 3000 X 9/100 X 4/12           90

Total interest accrued during the year                                  810

Less: Interest received during the year                               (650)

Accrued interest but not received                                       160            

2. Club has 400 members each paying an annual subscription of

Rs. 150. So, subscription income for 2018-2019 is Rs.60000, out of which only Rs. 49200 has been received.

So the balance of Rs 10800 (=60000-49200) is outstanding for 2018-2019.

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