Page 285 - ISCDEBK-XI

Non-Trading Organisation 23.33

1st April, 2019 31st March, 2020
` `
(i) Subscriptions due 2,400 1,960
(ii) Cheques issued, but not presented for payment
of printing and stationery 180 60
(iii) Club premises at cost 58,000 ...
(iv) Depreciation on club premises provided so far 37,600 ...
(v) Car at cost 24,380 ...
(vi) Depreciation on car provided so far 20,580 ...
(vii) Value of bar stock 1,420 1,740
(viii) Amount unpaid for bar purchases 1,180 860
(ix) Depreciation is to be provided @ 5% p.a. on the
written down value of the club premises and
@ 15% p.a. on the car for the whole year.
You are required to prepare an Income & Expenditure Account of Diana Club for the year ending
31st March, 2020 and Balance Sheet as on that date. (P.E. (Examination)—I, Nov. 2001, Modified)

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

To Honorariun to Secretary 9,600 By Subscriptions (WN 6) 20,980
To Miscellaneous Expenses 3,060 By Bar Receipts (Sales) 14,900
To Rates and Taxes 2,520 By Sale of Old Newspapers 4,800
To Ground Man’s Wages 1,680 By Entertainment Fees 8,540
To Printing and Stationery* 940 By Bank Interest 460
To Telephone Expenses 4,780 By Profit on Sale of Car (WN 5) 2,200
To Bar Stock Used (WN 1 and WN 2) 10,900
To Repairs 640
To Depreciation:
On Club Premises (WN 3) 1,020
On Car (WN 4) 4,680
To Surplus (Excess of Income over Expenditure) 12,060
51,880 51,880

BALANCE SHEET as at 31st March, 2020
Liabilities ` Assets `
Capital Fund: Club Premises (WN 3) 58,000
Opening Balance (WN 7) 43,600 Less: Accumulated Depreciation 38,620 19,380
Add: Surplus 12,060 55,660 Car (WN 4) 31,200
Creditors for Bar Purchases 860 Less: Accumulated Depreciation 4,680 26,520
Short-term Credit by Secretary 40 Bar Stock 1,740
Subscription Due 1,960
Cash and Bank 6,960
56,560 56,560
* In the question, opening and closing cash and bank balances are as per Cash Book and therefore, there
is no need for adjustment of cheques issued and not presented for payment for printing and stationery.
Adjustment is neither required in the bank balance nor in the Printing and Stationery Account.