Page 264 - ISCDEBK-XI

23.12 Double Entry Book Keeping—ISC XI

Other Information:
1.4.2019 31.3.2020

` `
(i) Subscriptions Due 400 900
(ii) Salaries Due 1,000 2,000
(iii) Value of Equipment 10,000 11,000

(iv) Value of Building 20,000 18,000
(v) Municipal Tax Paid in Advance ... 120
(vi) Stock of Tinned Provision 1,000 1,400
(vii) Telephone Bill Outstanding 50 100

(viii) Donations and Surplus Amount from Tournament should be kept in a Reserve Account.
(ix) Loan from Bank was taken on 1st September, 2019 at 18% p.a.

You are required to prepare the Income & Expenditure Account for the year ended
31st March, 2020 and the Balance Sheet as at that date. (ISC 1996, Modified)

Solution: Marigold Cricket Club
INCOME & EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2020 Cr.
Expenditure ` Income `
To Telephone 300 By Subscriptions 30,000
Add: Telephone Bill Add: Due (31.3.2020) 900
Outstanding (31.3.2020) 100 30,900
400 Less: Due (1.4.2019) 400 30,500
Less: Telephone Bill By Profit from Catering (WN 2) 1,400
Outstanding (1.4.2019) 50 350 By Profit on Sale of Lawn mower 200
To Grass Seeds 200 By Sale of Old Balls and Bats 50
To Municipal Tax (` 400 – ` 120) 280
To Salaries 5,000
Add: Due (31.3.2020) 2,000
7,000
Less: Due (1.4.2019) 1,000 6,000
To Interest on Bank Loan 1,050
(` 10,000 × 18/100 × 7/12)
To Depreciation:
On Building 2,000
On Equipment 400 2,400
To Surplus, i.e., Excess of Income over
Expenditure transferred to Capital Fund 21,870
32,150 32,150