From the following information, prepare the income and expenditure account for the year ended 31-03-2015 of Warangal Town Club:
Receipts and Payments account
| Receipts | Amount (₹) | Payments | Amount (₹) |
|---|---|---|---|
| To Balance | 10,000 | By Salaries | 8,000 |
| To Subscriptions | 27,000 | By Grass making Machine | 4,000 |
| To Tournament fund | 10,000 | By Rent | 1,800 |
| To Legacies | 6,000 | By General expenses | 14,000 |
| To Entrance fee | 1,000 | By Tournament expenses | 4,000 |
| To Donation for ground | 16,000 | By office expenses | 9,000 |
| To Sale of grass | 800 | By Purchase of sports material | 6,000 |
| By Balance c/d | 24,000 | ||
| Total | 70,800 | Total | 70,800 |
Additional Information:
- Subscriptions received included an amount ₹ 4,200 related to the previous year.
- Outstanding subscription ₹ 1000.
- Sports materials opening balance ₹ 4,000 and closing balance ₹ 5,000.
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Start your 14-day free trial to unlock the full solution →Revenue expenditure = Salaries 8,000 + Rent 1,800 + General expenses 14,000 + Office expenses 9,000 + Sports material consumed 5,000 = ₹37,800. Revenue income = Subscriptions 23,800 + Entrance fee 1,000 + Sale of grass 800 = ₹25,600. Deficit = ₹12,200.
Working 1 — Subscriptions for the current year.
- Received during the year = 27,000
- Less: amount relating to the previous year = (4,200)
- Add: outstanding for the current year = 1,000
- Subscriptions income = ₹23,800
Working 2 — Sports material consumed. Opening 4,000 + Purchased 6,000 − Closing 5,000 = ₹5,000 (only the consumption, not the purchase, is an expense).
Items excluded from Income and Expenditure (capital / fund items): opening and closing cash balances; Legacies ₹6,000 (capital receipt); Donation for ground ₹16,000 (specific/capital donation); Tournament fund ₹10,000 and Tournament expenses ₹4,000 (fund-based — set off against the fund, not routed through I&E); Grass-making machine ₹4,000 (capital expenditure shown as an asset).
Income and Expenditure Account for the year ended 31-03-2015
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