Page 262 - ISCDEBK-XI

23.10 Double Entry Book Keeping—ISC XI

6. Dr. EQUIPMENT ACCOUNT Cr.
Date Particulars ` Date Particulars `
2019 2020
April 1 To Balance b/d 21,000 March 31 By Income & Expenditure A/c 6,000
? To Cash A/c (Purchases) 15,000 (Bal. Fig.) (Depreciation)
March 31 By Balance c/d 30,000
36,000 36,000
Illustration 7.
Following is the summary of the cash transactions of a literary society for the year ended
31st March, 2020:
Dr. EQUIPMENT ACCOUNT Cr.
Receipts ` Payments `
Cash Balance on 1st April, 2019 31,900 Rent and Rates 16,800
Entrance Fees 25,500 Wages 24,500
Subscriptions 1,60,000 Lighting 7,200
Donations 16,500 Lecture Fees 43,500
Life Membership Subscriptions 25,000 Books 21,300
Interest on Fixed Deposit 1,200 Office Expenses 45,000
Profit from Entertainment 4,400 Fixed Deposit @ 6% p.a. on 1st October, 2019 80,000
Cash at Bank on 31st March, 2020 24,200
Cash in Hand on 31st March, 2020 2,000
2,64,500 2,64,500
In the beginning of the year, the society possessed books worth ` 2,00,000 and furniture valued
at ` 85,000. Ordinary subscriptions in arrear in the beginning of the year amounted to ` 3,500 and
at the end of the year ` 4,500. Six months rent, ` 6,000 was due both in the beginning and at the
end of the year. Provide ` 5,000 as depreciation on furniture and ` 11,300 as depreciation on books.
Prepare the society’s Income & Expenditure Account for the year ended 31st March, 2020 and
its Balance Sheet as at that date. [CS (F), June 2010, Modified]
Solution: INCOME & EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2020 Cr.
Expenditure ` Income `
To Rent and Rates 16,800 By Subscriptions 1,60,000
Add: Outstanding (End) 6,000 Add: Arrears at the end 4,500
22,800 1,64,500
Less: Outstanding (Beginning) 6,000 16,800 Less: Arrears in the beginning 3,500 1,61,000
To Wages 24,500 By Donations 16,500
To Lighting 7,200 By Interest on Fixed Deposit 1,200
To Lecture Fees 43,500 Add: Interest Outstanding 1,200 2,400
To Office Expenses 45,000 (WN 1)
To Depreciation On: By Profit from Entertainment 4,400
Furniture 5,000
Books 11,300 16,300
To Surplus i.e., Excess of
Income over Expenditure 31,000
1,84,300 1,84,300