Question

Q. 1. From the following information, prepare Income and Expenditure A/c for the
year ending on 31st March, 2019 of an Entertainment Club :
Receipts
3 ₹
Payments
₹
Cash Balance 1-4-2018
7,200 Rent
48,000
Life Membership Fees
50,000 Furniture Purchased
50,000
Locker's Rent
22,000 Salary
2,40,000
Entrance Fees
5,700 Insurance Premium
12,600
Subscriptions
Telephone Charges
18,200
2017-18
14,200
Printing
4,100
2018-19
3,46,000
Investments Purchased
3,00,000
2019-20
11,600 3,71,800 Cash Balance 31-3-2019
11,500
Donation for Swimming Pool 2,00,000
Interest
15,000
Miscellaneous Income
700
Income from Advertisement
12,000
6,84,400
6,84,400​

Answer 1

Concept:

Solving adjustments as per the respected question.

Given:

It is given that respectively transactions took place as of 31st March 2019.

Find:

We have to prepare Income and Expenditure A/c for the year ended on 31st March 2019 of an entertainment club.

Solution:

• An organization's complete accounting of all its receipts and outlays for a given fiscal year is known as an income and expense account. This account, which is prepared on an accrual basis, captures all income and outlays for a specific year, whether they are clear or not.
• In contrast to expenditure, which refers to actual costs incurred, income refers to the earnings from non-trading foundations' income created over a given fiscal year.

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