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M.318 An Aid to Accountancy—CBSE XII

13. INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Expenditure ` Income `
To Salaries 12,000 By Entrance Fees 3,000
To Electric Charges 1,200 By Subscription 35,000
To Other Expenses 5,250 Add: Outstanding Subscription 750 35,750
To Depreciation on: By Accrued Interest on Fixed Deposit 250
Furniture (10% of ` 25,000) 2,500 By Refreshment 1,000
Utensils [15/100 (` 8,000 + ` 2,000)] 1,500 4,000 By Miscellaneous Income 3,200
To Consumable Stores 0
(` 3,500 + ` 3,500 (WN 2) – ` 7,000)
To Surplus (i.e., excess of Income over Expenditure) 20,750
43,200 43,200
BALANCE SHEET as on 31st March, 2018
Liabilities ` Assets `
Subscription Received in Advance 750 Cash in Hand 21,500
Creditors 5,500 Utensils (` 8,000 + ` 2,000 – ` 1,500) 8,500
Capital Fund (WN 2) (1.4.2017) 58,500 Furniture (` 25,000 – ` 2,500) 22,500
Add: Surplus 20,750 79,250 Consumable Stores 7,000
Subscription Outstanding 750
Fixed Deposit 25,000
Accrued Interest on Fixed Deposit 250
85,500 85,500
Working Notes:
1. Calculation of Capital Fund as on 1st April, 2017:
BALANCE SHEET as on 1st April, 2017
Liabilities ` Assets `
Creditors 12,000 Cash in Hand 33,500
Capital Fund (Balancing Figure) 58,500 Utensils 8,000
Furniture 25,000
Consumable Stores 3,500
Subscription Outstanding 500
70,500 70,500

2. Dr. CREDITORS FOR CONSUMABLE STORES ACCOUNT Cr.
Particulars ` Particulars `
To Bank A/c 10,000 By Balance b/d 12,000
To Balance c/d 5,500 By Purchases A/c (Balancing Figure) 3,500
15,500 15,500

14. (a) PROFIT AND LOSS ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To Manager’s Commission (5% of ` 1,50,000) 7,500 By Profit before Manager’s Commission 1,50,000
To Net Profit transferred to Profit and
Loss Appropriation A/c 1,42,500
1,50,000 1,50,000