question_answer

The following is the receipts and payments account of Dhara Sports Club for the year ended 31st March, 2018. Receipts and Payments Account Dr                                             for the year ending 31st March, 2018                                                         Cr

Receipts	Amt (Rs.)	Payments	Amt (Rs.)
To Advertisement in Club's Year Book	39,900	By Rent	1,26,000
To Grant	70,000	By Salary	1,96,000
To Entrance Fees	24,500	By Telephone	17,500
To Table Tennis Fees	28,000	By Postage	22,400
To Billiard Fees	36,400	By Rent and Tax	50,400
To Bar Receipts	4,20,000	By Bar Purchases	3,15,000
To Subscription	1,75,000	By furniture	35,000
To Donation	84,000	By Stationery	56,000
		By Balance
		Cash	5,600
		Bank	53,900
	8,77,800		8,77,800

Additional Information (i) Donations are for specifically building fund. (ii) Salary is paid @ Rs. 17,500 p.m and salary of Rs. 7,000 is prepaid. (iii) Subscription in arrear Rs. 21,000 and received in advance Rs. 3,500. (iv) Rent is paid for 3 years in advance. (v) Sundry person owed Rs. 10,500 for advertisement in club's year book. (vi) Bar stock at the end Rs. 56,000 and stationery at the end Rs. 7,500. You are required to prepare income and expenditure account for the year ended 31st March, 2018.

Answer:

                                                Income and Expenditure Account Dr                                             for the year ending 31 St March, 2018                                                       Cr

Expenditure		Amt (Rs.)	Income		Amt (Rs.)
To Rent	1,26,000		By Subscription	1,75,000
(-) Prepaid	(84,000)	42,000	(+) Arrear	21,000
To Salary	1,96,000			1,96,000
(+) Outstanding	21,000		(-) Advance	(3,500)	1,92,500
	2,17,000		By Bar Receipts		4,20,000
(-) Prepaid	(7,000)	2,10,000	By Billiards Fees		36,400
To Rent and Taxes		50,400	By Table Tennis Fees		28,000
To Bar Purchase	3,15,000		By Entrance Fees		24,500
(-) Stock at the End	(56,000)	2,59,000	By Grant		70,000
To Stationery	56,000		By Advertisement in Club?s
(-) Stock at the End	(17,500)	38,500	Year Book	39,900
To Telephone		17,500	(+) Outstanding	10,500	50,400
To Postage		22,400
To Surplus i.e. Excess of Income
over Expenditure		1,82,000
		8,21,800			8,21,800