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

Receipts Amount Payments Amount
To Balance b/d 32,500 By Salaries 31,500
To Subscription By Postage 1,250
2016-17            1,500 By Rent 9,000
2017-18          60,000 By Printing and
2018-19            1,800 63,300 Stationery 14,000
To Donations (Billiards Table) 90,000 By Sports Material 11,500
By Miscellaneous Expenses 3,100
To Entrance Fees 1,100 By Furniture (1.10.2017) 20,000
To Sale of old magazines 450 By 10% investment
(1.10.2017) 70,000
By Balance c/d (31.3.18) 27,000
187,350 187,350

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.

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    1 Answer

    1. Pursuing ACCA
      This answer was edited.

      In the books of Youth Ltd.

      Income & Expenditure A/c for the year ended 31 March 2018

      Expenditure Amt (₹) Income Amt (₹)
      To Salaries 31,500 By Subscription (W.N.1) 75,000
      To Postage 1,250 By Entrance fees 1,100
      To Rent 9,000 By Sale of old magazines 450
      To Printing and Stationery 14,000 By Interest on investment (W.N.3) 3,500
      To Sports material consumed (W.N.2) 10,000
      To Miscellaneous expenses 3,100
      To Depreciation on furniture (W.N.4) 1,000
      To Surplus 10,200
      80,050 80,050

       

      Working Notes:

      1. Calculation of Subscription:
      Subscription for the year 60,000
      Add: Outstanding subscription 16,200
      Less: Subscription in arrears (1,200)
      75,000
      2. Calculation of sports material consumed:
      Opening stock of Sports Material 3,000
      Add: Purchased during the year 11,500
      Less: Closing stock of Sports material (4,500)
      10,000
      3. Calculation of Interest on investment:
      Investment as on 1.10.2017 = 70,000
      The investment will be calculated for 6 months i.e starting from 1.10.2017 to 31.3.2018
      For 6 months = 70,000 * 10% * 6/12
      = 3,500
      4. Calculation of Depreciation on furniture:
      Furniture as on 1.10.2017 = 20,000
      Depreciation on the furniture will be calculated for 6 months i.e starting from 1.10.2017 to 31.3.2018
      For 6 months = 20,000 * 10% * 6/12
      = 1,000

       

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