Page 284 - ISCDEBK-XI

23.32 Double Entry Book Keeping—ISC XI

Solution: INCOME & EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2020 Cr.
Expenditure ` Income `
To Stock of Balls Consumed: By Subscriptions A/c (WN) 2,44,000
Purchase of Ball 65,000 By Interest on Investments 6,900
Less: Closing Stock 6,000 59,000 [` 1,800 + (` 1,70,000 × 12/100 × 3/12)]
To Tournament Fees 10,000 By Sale of Tickets for Variety Programme 20,000
To Affiliation Fees (` 2,000 × 1/5) 400
To Rent of Playground 6,000
To Expenses on Variety Programme 15,000
To Refreshment Expenses 4,000
To Travelling Expenses 20,000
To Repairs to Building 13,000
(` 5,000 + ` 12,000 – ` 4,000)
To Salaries 15,000
To Telephone Charges 1,200
(` 1,500 + ` 300 – ` 600)
To Miscellaneous Expenses 5,000
To Honorarium 3,000
To Loss on Sale of Furniture 1,800
To Depreciation on Furniture 1,700
To Surplus, i.e., Excess of Income Over Exp. 1,15,800
2,70,900 2,70,900

Working Note:
Dr. SUBSCRIPTIONS ACCOUNT Cr.
Particulars ` Particulars `
To Outstanding Subscriptions A/c 9,000 By Bank A/c 2,45,000
(Beginning) By Outstanding Subscriptions A/c 16,000
To Income & Expenditure A/c 2,44,000 (at the end)
(Balancing figure)
To Advance Subscriptions A/c 8,000
(at the end)
2,61,000 2,61,000

Illustration 19 (Unpresented Cheques, Balance as per Cash Book and Cash Supplied by the Secretary
for use of the Organisation).
The Accountant of Diana Club furnishes you the following Receipts & Payments Account for
the year ended 31st March, 2020:

Dr. RECEIPTS & PAYMENTS ACCOUNT Cr.
Receipts ` Payments `
To Balance b/d: By Honorariun to Secretary 9,600
Cash and Bank 16,760 By Miscellaneous Expenses 3,060
To Subscriptions 21,420 By Rates and Taxes 2,520
To Sale of Old Newspapers 4,800 By Ground Man’s Wages 1,680
To Entertainment Fees 8,540 By Printing and Stationery 940
To Bar Receipts 14,900 By Telephone Expenses 4,780
To Bank Interest 460 By Payment for Bar Purchases 11,540
To Short-term Credit by Secretary 40 By Repairs 640
By New Car (Less Sale Proceeds of
Old Car ` 6,000) 25,200
By Balance c/d:
Cash and Bank 6,960
66,920 66,920