Page 268 - ISCDEBK-XI

23.16 Double Entry Book Keeping—ISC XI

Working Notes:
1. Calculation of Subscription Due at the end of the year:
Dr. SUBSCRIPTION ACCOUNT Cr.
Particulars ` Particulars `
To Subscriptions Due A/c 3,000 By Subscriptions Received in Advance A/c
To Income & Expenditure A/c (1,000 × ` 50) 50,000 2019 (20 × ` 50) 1,000
To Subscriptions received in Advance By Bank A/c 40,000
2020 (` 50 × 15) 750 By Subscription Due:
2019 (` 3,000 – ` 2,000) 1,000
2020 (Balancing Figure) 11,750
53,750 53,750
2. 12% Investment on 1st January, 2020—` 40,000

[Includes ` 30,000 invested from donations received [Remaining investment (` 40,000 – 30,000 = ` 10,000)
for building, so interest of this (30,000 × 12/100 is general investment, so interest on 12% investment
= ` 3,600) should be credited to Building Fund] (10,000 × 12/100 = ` 1,200) is treated as income and
credited to Income & Expenditure A/c]
3. BALANCE SHEET as at 31st December, 2019
Liabilities ` Assets `
Creditors for Printing 2,500 Cash in Hand 7,500
Subscriptions Received in Advance (20 × ` 50) 1,000 Prepaid Municipal Taxes 1,500
Capital Fund (Balancing Figure) 3,68,000 Subscriptions Outstanding 3,000
Furniture 10,000
Books 20,000
Building 1,25,000
10% Investments (` 20,000 × 100/10) 2,00,000
Stock of Sports Materials 4,500
3,71,500 3,71,500
Illustration 10.
Prepare the Income & Expenditure Account of Lions Club for the year ended 31st March, 2020
and the Balance Sheet as at that date from the following:
Dr. RECEIPTS & PAYMENTS ACCOUNT for the year ended 31st March, 2020 Cr.
Receipts ` Payments `
To Balance b/d: By Salary:
Cash 20,000 Secretary 60,000
Bank 1,20,000 1,40,000 Staff 50,000 1,10,000
To Subscriptions: By Canteen Expenses 1,20,000
2018–19 5,000 By Newspapers, Magazines and Journals 9,000
2019–20 55,000 By Miscellaneous Expenses 16,000
2020–21 4,000 64,000 By Construction of Building 1,50,000
To Interest from Bank 10,000 By Balance c/d:
To Sale of Old Furniture 20,000 Cash 13,000
To Sale of Old Newspapers 4,000 Bank 40,000 53,000
To Canteen Collections 1,20,000
To Donation for Building 1,00,000
4,58,000 4,58,000