Question

Prepare Income and Expenditure Account from the following particulars of Youth Club, for the year ended on 31st March,2018:

Additional Information:

i. Subscription outstanding as at March 31st 2018 Rs. 16,200

ii. Rs.1200 is still in arrears for the year 2016-17 for subscription

iii. Value of sports material at the beginning and at the end of the year was Rs 3,000 and Rs. 4,500 respectively.

iv. Depreciation to be provided @ 10% p.a. on furniture.

Answer 1

Income And Expenditure A/c For the year ended 31st March, 2018

Working Notes:-

(i) Consumption of Sports Material = Opening stock of sports material+ Purchases of sports material during the year – Closing stock of sports material = Rs.3,000 + Rs. 11,500 – Rs. 4,500= Rs. 10,000

(ii) Depreciation of furniture = Rs.20,000 x (6/12) x (10/100) = Rs. 1,000

(iii) Interest on investment = Rs 70,00 x (10/100) x (6/12) = Rs. 3,500