Page 258 - ISCDEBK-XI

23.6 Double Entry Book Keeping—ISC XI

Or
Dr. SUNDRY EXPENSES ACCOUNT Cr.
Particulars ` Particulars `
To Prepaid Sundry Expenses A/c 8,000 By Outstanding Sundry Expenses A/c 5,000
(in the beginning) (in the beginning)
To Cash A/c 40,000 By Income & Expenditure A/c 45,000
To Outstanding Sundry Expenses A/c 9,000 (Balancing Figure)
(at the end) By Prepaid Sundry Expenses A/c 7,000
(at the end)
57,000 57,000

Illustration 5.
Show what amount will appear in Income & Expenditure Account for the year ending
31st March, 2020 and Balance Sheet as at that date in each of the following cases:
Case (a): Prize fund as at 31st March, 2019—` 12,000. Donations for prizes received during
the year 2019-20—` 2,800; Prizes awarded ` 2,000; 10% Prize Fund Investments as
at 31st March, 2019—` 12,000. Interest received on Prize Fund Investments ` 600.
Case (b): Stock of stationery on 31st March, 2019—` 3,000. Creditors of stationery on
31st March, 2019—` 2,000; advance paid for stationery carried forward from
2018-19—` 200; Amount paid for stationery during the year 2019-20—` 10,800, Stock
of stationery on 31st March, 2020—` 500, creditors for stationery on 31st March,
2020—` 1,300 and advance paid for stationery on 31st March, 2020—` 300.
Case (c): Subscription outstanding as on 31st March, 2019—` 2,000, subscription received
in advance on 31st March, 2019—` 3,000. Amount of subscription received during
2019-20—` 35,000 out of which ` 1,500 related to 2018-19 and ` 800 related
to 2020-21. On 31st March, 2020, subscription outstanding for 2019-20 amounted
to ` 1,300.
Solution:
Case (a) BALANCE SHEET (ONLY RELEVANT ITEMS)
as at 31st March, 2020
Liabilities ` Assets `
Prize Fund 12,000 Prize Fund Investments 12,000
Add: Donations for Prizes 2,800 Accrued Interest on Prize Fund Investments* 600
Interest Received on
Prize Fund Investments* 600
Accrued Interest 600
16,000
Less: Prizes Awarded 2,000 14,000

`
*Yearly interest on prize fund investment (10% of ` 12,000) 1,200
Less: Interest received during the year 600
Accrued interest 600