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Q.

From the following Receipts and Payments account of 'Sri Kala Nilayam' for the year ended 31-03-2019, prepare the Income and Expenditure account.

Receipts and Payments Account for the year ended 31-03-2019

ReceiptsAmount (Rs.)PaymentsAmount (Rs.)
To Balance b/d5,000By Salaries3,000
To Subscriptions 2017-18200By Entertainment Expenses1,600
To Subscriptions 2018-194,500By General Expenses600
To Subscriptions 2019-20400By Investments2,000
To Entertainment Receipts2,080By Painting1,400
To Sale of old furniture (Book Value Rs. 120)320By Furniture800
By Balance c/d3,100
Total12,500Total12,500

Additional Information:

  1. Outstanding salaries Rs. 500
  2. Subscriptions outstanding for 2018-19 Rs. 1,000
  3. Depreciate furniture by 10%.
Telangana TsbieTSBIE Telangana Intermediate (2nd Year) Commerce Board 2022Subjective· 10mImportance★★★★★est
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Take only current-year (2018-19) revenue items: subscriptions Rs. 4,500 + outstanding Rs. 1,000 = Rs. 5,500, entertainment receipts Rs. 2,080 and profit on sale of furniture Rs. 200; against salaries Rs. 3,500 (incl. outstanding Rs. 500), entertainment expenses Rs. 1,600, general expenses Rs. 600 and depreciation Rs. 80. Result: a surplus of Rs. 2,000.

Working notes:

  • Subscriptions for 2018-19 only: Rs. 4,500 received + Rs. 1,000 still outstanding = Rs. 5,500 (the Rs. 200 for 2017-18 and Rs. 400 for 2019-20 belong to other years and are excluded).
  • Profit on sale of old furniture = Rs. 320 - Rs. 120 (book value) = Rs. 200.
  • Salaries = Rs. 3,000 paid + Rs. 500 outstanding = Rs. 3,500.
  • Depreciation on furniture = 10% of furniture purchased Rs. 800 = Rs. 80.
  • Investments Rs. 2,000, Painting Rs. 1,400 and Furniture Rs. 800 are capital payments and are not shown here.

Income and Expenditure Account of Sri Kala Nilayam for the year ended 31-03-2019

| Expenditure | Amount (Rs.) | Income | Amount (Rs.) |

|---|---|---|---| …

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