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Following is the Receipts and Payments Account of a Star Club for the year ending Dec. 31, 2015:

Receipts

Rs.

Payments

Rs.

To Balance b/d

1,90,000

By Salaries

4,40,000

To Subscriptions

6,70,000

By Sports Equipment

4,00,000

To interest on investments

@8% p.a. for full year

40,000

By Balance c/d

1,60,000

 

 

 

 

 

Additional information:

 i. The club had received Rs.30,000 for subscription in 2014 for 2015.

 ii. Salaries had been paid only for 11 months

 iii. Stock of sports equipment on 31st December 2014 was Rs.3,50,000 and on 31st December 2015 Rs.7,00,000. Prepare Income and Expenditure Account.

Asked by Topperlearning User 4th July 2016, 8:16 AM
Answered by Expert
Answer:

 Income and Expenditure Account

For the year ended 31st December, 2015

Dr.

Cr.

Expenditure

 

Rs. 

Income

 

Rs. 

To Salaries

4,40,000

 

By Subscription

6,70,000

 

Add: outstanding

40,000

4,80,000

Add: Advance Subscription received (PY)

 

 

 

30,000

 

 

 

7,00,000

To Dep. on sports equipment:

 

 

By Interest on investments

 

40,000

Opening stock

3,50,000

 

 

 

 

Add: Purchases

4,00,000

 

 

 

 

 

7,50,000

 

 

 

 

Less: closing stock

7,00,000

50,000

 

 

 

 

 

 

 

 

 

To Excess of income over expenditure, i.e., Surplus

 

2,10,000

 

 

 

 

 

7,40,000

 

 

7,40,000

 

Answered by Expert 4th July 2016, 10:16 AM
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