The Question : From the following Receipts and Payments Account and additional information provided by Ramanath Club, Prepare Income and Expenditure Account for the year ending on 31st March 2021.Additional Information: (i) Subscription received during the year includes ₹ 25,000 as donation for Building(ii) Telephone bill unpaid as on March 31, 2020 was ₹ 4,000 and on March 31, 2021 ₹ 2,600. (iii) Value of 8% Government Securities on March 31, 2020 was ₹ 80,000. (iv)Additional Government Securities worth ₹ 30,000 were purchased on March 31, 2021.
Solution for the question :
Income & Expenditure A/c For the year ended March 31, 2021Dr.Expenditure₹IncomeCr.₹To Salary and Wages1,03,200By Subscription 95,000To Sundry Expenses 47,000Less: Donations for Building 25,000 70,000To Refreshment Expense60,400By Entrance Fee1,56,000To Telephone Bill 5,000By Locker Rent 50,000Add : O/S for 2020-21 2,600By Interest on 8% Govt. Securities 5,400Less : O/S for 2019-20 4,0003,600To Rent and Rates24,000To Honorarium to Secretary5,000Add: Accrued Interest 1,000 6,400By Revenue from Refreshment52,000To Surplus(Excess of Income over Expenditure)96,800By Sale of old Newspapers4,600By Profit on Sale of Furniture10003,40,0003,40,000
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