Page 267 - ISCDEBK-XI

Non-Trading Organisation 23.15

Solution:
INCOME & EXPENDITURE ACCOUNT
Dr. for the year ended 31st December, 2020 Cr.
Expenditure ` Income `
To Salaries 14,000 By Subscriptions 40,000
To Sports Materials: Add: Advance Received
Opening Stock 4,500 (2019) 1,000
Add: Purchases 15,000 Outstanding
19,500 (2020) 11,750 (WN 1) 12,750
Less: Closing Stock 4,000 15,500 52,750
To Printing and Stationery 12,000 Less: Outstanding
Less: Creditors for 2019 2,500 9,500 (2019) 2,000
To Honorarium 5,000 Received in
To Newspapers, Magazines and Journals 10,000 Advance
To Depreciation on Books (2020) 750 2,750 50,000*
(` 20,000 + ` 35,000 – ` 46,000) 9,000 By Donations 15,000
To Municipal Taxes 6,000 By Interest on 10% Investments 20,000
Add: Prepaid (2019) (6,000 × 3/12) 1,500 By Sale of Newspapers (Old) 2,500
7,500 By Accrued Interest on 12% Investment 1,200
Less: Prepaid (2020) 1,500 6,000 (10,000 × 12/100) (WN 2)
To Surplus, i.e., excess of Income
over Expenditure 19,700
88,700 88,700

*It can also be calculated as (1,000 × ` 50) = ` 50,000.
BALANCE SHEET
as at 31st December, 2020
Liabilities ` Assets `
Subscriptions Received in Advance (15 × ` 50) 750 Building 1,25,000
Match fund 40,000 Furniture 10,000
Less: Match Expenses 28,000 12,000 Addition 15,000
Donation for Billiards Table 50,000 25,000
Donation for Building Fund 45,000 Less: Sold 5,000 20,000
Add: Accrued Interest 3,600 48,600 Books (` 20,000 + ` 35,000 – ` 9,000) 46,000
(` 30,000 × 12/100) Stock of Sports Materials 4,000
Capital Fund (WN 3) 3,68,000 10% Investments 2,00,000
Add: Surplus 19,700 12% Investments 40,000
Life Membership Fees 35,000 Accrued Interest on 12% Investment 4,800
Entrance Fees 10,000 4,32,700 Billiards Table 50,000
Prepaid Municipal Taxes 1,500
Subscriptions Outstanding:
2019 (` 3,000 – ` 2,000) 1,000
2020 11,750 12,750
Cash in Hand 40,000
5,44,050 5,44,050