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Q.

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

ReceiptsAmount (₹)PaymentsAmount (₹)
To Balance10,000By Salaries8,000
To Subscriptions27,000By Grass making Machine4,000
To Tournament fund10,000By Rent1,800
To Legacies6,000By General expenses14,000
To Entrance fee1,000By Tournament expenses4,000
To Donation for ground16,000By office expenses9,000
To Sale of grass800By Purchase of sports material6,000
By Balance c/d24,000
Total70,800Total70,800

Additional Information:

  1. Subscriptions received included an amount ₹ 4,200 related to the previous year.
  2. Outstanding subscription ₹ 1000.
  3. Sports materials opening balance ₹ 4,000 and closing balance ₹ 5,000.
Telangana TsbieTSBIE Telangana Intermediate (2nd Year) Commerce Board 2018Subjective· 10mImportance★★★★★est
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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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