Page 272 - ISCDEBK-XI

23.20 Double Entry Book Keeping—ISC XI

Solution:
INCOME & EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2010 Cr.
Expenditure ` Income `
To Salaries (WN 1) 2,52,000 By Subscription (WN 4) 4,92,800
To Rent (WN 2) 72,000 By Interest on 8% Government Bonds (WN 4) 8,000
To Printing and Stationery (WN 3) 3,845 By Bank Interest 160
To Conveyance 10,600
To Depreciation on Scooter 5,000
(` 50,000 × 20/100 × 6/12)
To Surplus, i.e., Excess of Income
over Expenditure 1,57,515
5,00,960 5,00,960
Working Notes: `
1. Salary Paid 2,58,000
Less: Salary paid in Advance 6,000
2,52,000
2. Rent Paid 71,500
Add: Outstanding Rent (31st March, 2010) 6,000
77,500
Less: Outstanding Rent (31st March, 2009) 5,500
Rent for 2009–10 72,000
3. Printing and Stationery 3,870
Add: Opening Stock 340
4,210
Less: Closing Stock 365
Printing and Stationery used during the Year 2009–10 3,845
4. Interest on Government Bonds Received 4,000
Add: Interest due but not Received 4,000
Interest for the year 2009–10 8,000
5. Subscription Received 4,94,700
Add: Accrued Subscription as on 31st March, 2010 12,800
5,07,500
Less: Accrued Subscription as on 31st March, 2009 14,000
Advance for April, 2010 700 14,700
Subscription Income for 2009–10 4,92,800