PREPARATION OF INCOME AND EXPENDITURE ACCOUNT AND BALANCE SHEET
(Income & Expenditure A/c/Balance Sheet) Given below is the Receipts and Payments
Account of club for the year ending 31 December, 2018:
Receipts
₹
Payments
600
To Balance bid
1,500 By Salaries
100
To Subscriptions
By Expenses
500
2017
50 By Drama Expenses
120
2018
2000 By News papers
2019
80 By Municipal Taxes -
60
To Donations
550 By Charity
400
To Sale of Drama Tickets
1.050 By Investments
2.000
To Sale of waste paper
50 By Electricity Charges
200
To Entrance fees
300 By Payment of new furniture
1,000
By Balance c/d
600
5,580
5,580
Prepare the Club's Income and Expenditure Account for the year ending 31st December, 2018 and
its Balance Sheet as at that date after taking the following information into account:
6) There are 400 members each paying 5 as annual subscription, 360 subscriptions still
outstanding for 2017
(m) Municipal taxes amounting 60 per annum have been paid upto 31st March, 2019.
(2) 6 percent has accrued on investments for five months, and
(iv) Building stands in the books at 5.000 on 1-1-2018.
Ans. Surplus 2,035, Balance Sheet total 8,725]
Hint Donations have not been capitalized, opening capital fund * 6.610)
Fees/E
Fees) The​