From the following particulars, prepare Income and Expenditure account:
Details
Amount Rs
Fees collected, including Rs 80,000 on account of the previous year
5,20,000
Fees for the year outstanding
30,000
Salary paid, including Rs 5,000 on account of the previous year
68,000
Salary outstanding at the end of the year
3,000
Entertainment expenses
8,000
Tournament expenses
25,000
Meeting Expenses
18,000
Traveling Expenses
7,000
Purchase of Books and Periodicals, including Rs 31,000 for purchase of Books
40,000
Rent
15,000
Postage, telegrams and telephones
6,000
Printing and Stationery
18,000
Donations received
25,000
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Income and Expenditure Account |
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Dr. |
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Cr. |
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Expenditure |
Amount Rs |
Income |
Amount Rs |
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|
Salaries |
68,000 |
|
Fees Collected |
5,20,000 |
|
|
|
Less: Previous year's Outstanding |
(5,000) |
|
Less: Previous year's Outstanding |
(80,000) |
|
|
|
|
63,000 |
|
|
4,40,000 |
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|
|
Add: Current year's Outstanding |
3,000 |
66,000 |
Add: Current year's Outstanding |
30,000 |
4,70,000 |
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|
Entertainment Expenses |
|
8,000 |
Donations |
25,000 |
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Tournament Expenses |
25,000 |
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Meeting Expenses |
18,000 |
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Traveling Expenses |
7,000 |
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Purchases of Periodicals (40,000 – 31,000) |
9,000 |
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Postage, Telegrams and Telephone’s |
6,000 |
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Rent |
15.000 |
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Printing and Stationery |
18,000 |
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Surplus (Excess of Income over Expenditure) |
3,23,000 |
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|
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|
|
|
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|
|
4,95,000 |
|
4,95,000 |
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NOTE: As per the solution, Excess of Income over Expenditure is Rs 3,23,000; however, as per the book, it is Rs 3,07,000.