Page 269 - ISCDEBK-XI

Non-Trading Organisation 23.17

Additional Information: 31st March, 2019 31st March, 2020
` `

(i) Subscriptions outstanding as on 10,000 6,000
(ii) Subscriptions in advance as on 2,000 4,000

(iii) Outstanding salary of staff 10,000 20,000
(iv) Prepaid canteen expenses 10,000 15,000

(v) Furniture at book value 1,40,000 ...
(vi) Building (under construction) 1,50,000 4,00,000

(vii) Fixed Deposits with Bank 1,00,000 1,00,000
(viii) Building fund 2,00,000 ...

Book value of furniture sold during the year was ` 15,000 and depreciation on furniture is
charged @ 10% p.a. on closing balance.

Solution:
Lions Club
INCOME & EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2020 Cr.
Expenditure ` Income `

To Salary: By Subscriptions (WN 2) 58,000
Secretary 60,000 By Interest from Bank 10,000
Staff 50,000 By Profit on Sale of Furniture (WN 1) 5,000
1,10,000 By Sale of Old Newspapers 4,000
Add: Outstanding Salary of Staff By Canteen Collections 1,20,000
(31st March, 2020) 20,000 By Excess of Expenditure over Income
1,30,000 transferred to Capital Fund (Deficit) 75,500
Less: Outstanding Salary of Staff (Balancing Figure)
(31st March, 2019) 10,000 1,20,000
To Canteen Expenses 1,20,000
Add: Prepaid
(31st March, 2019) 10,000
1,30,000
Less: Prepaid
(31st March, 2020) 15,000 1,15,000
To Newspapers, Magazines and Journals 9,000
To Miscellaneous Expenses 16,000
To Depreciation on Furniture (WN 1) 12,500
2,72,500 2,72,500