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
| Receipts | Amount (Rs.) | Payments | Amount (Rs.) |
|---|---|---|---|
| To Balance b/d | 5,000 | By Salaries | 3,000 |
| To Subscriptions 2017-18 | 200 | By Entertainment Expenses | 1,600 |
| To Subscriptions 2018-19 | 4,500 | By General Expenses | 600 |
| To Subscriptions 2019-20 | 400 | By Investments | 2,000 |
| To Entertainment Receipts | 2,080 | By Painting | 1,400 |
| To Sale of old furniture (Book Value Rs. 120) | 320 | By Furniture | 800 |
| By Balance c/d | 3,100 | ||
| Total | 12,500 | Total | 12,500 |
Additional Information:
- Outstanding salaries Rs. 500
- Subscriptions outstanding for 2018-19 Rs. 1,000
- Depreciate furniture by 10%.
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Start your 14-day free trial to unlock the full solution →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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