Hyderabad Youth Club gives you their Receipts and Payments Account and other information and requests you to prepare their Income and Expenditure Account for the year ended 31-03-2021.

Receipt and Payments Account for the year ended 31-03-2021

| Receipts | Amount | Payments | A

Question

Hyderabad Youth Club gives you their Receipts and Payments Account and other information and requests you to prepare their Income and Expenditure Account for the year ended 31-03-2021.

Receipt and Payments Account for the year ended 31-03-2021

| Receipts | Amount | Payments | Amount |
|---|---|---|---|
| Opening Cash | 3,000 | Computer Purchase | 6,000 |
| Opening Bank Balance | 9,000 | Tournament Expenses | 6,000 |
| Subscriptions | 16,000 | Entertainment Show | 3,600 |
| Entertainment Show Receipts | 8,000 | Magazines | 2,400 |
| Entrance Fees | 4,000 | Salaries | 2,400 |
|  |  | Rent | 8,000 |
|  |  | Closing Cash | 3,600 |
| Total | 40,000 | Total | 40,000 |

Additional Information:
(a) Outstanding subscription on 31-03-2021 Rs. 750.
(b) Subscriptions received in advance on 31-03-2021 Rs. 250.
(c) The value of old furniture sold is Rs. 22,500

Accepted Answer

>

> [!TLDR]
> The Income and Expenditure Account for the year ended 31-03-2021 charges only revenue expenses (tournament 6,000, entertainment show 3,600, magazines 2,400, salaries 2,400, rent 8,000 = 22,400) against revenue incomes (subscriptions adjusted to 16,500, entertainment receipts 8,000, entrance fees 4,000 = 28,500), leaving a surplus of Rs. 6,100. Computer purchase (6,000) is capital and excluded.
>
> This is a TS Inter 2nd-year (Telangana Intermediate) Accountancy not-for-profit-organisation problem; the TS treatment aligns with the NCERT/CBSE commerce curriculum.
>
> ## Working — Subscriptions for the year
>
> - Subscriptions received during the year = Rs. 16,000
> - Add: Outstanding (still receivable) on 31-03-2021 = Rs. 750
> - Less: Received in advance on 31-03-2021 = Rs. 250
> - **Subscription income for the year = Rs. 16,500**
>
> ## Income and Expenditure Account for the year ended 31-03-2021
>
> | Expenditure | Amount (Rs.) | Income | Amount (Rs.) |
> |---|---|---|---|
> | To Tournament Expenses | 6,000 | By Subscriptions (16,000 + 750 − 250) | 16,500 |
> | To Entertainment Show expenses | 3,600 | By Entertainment Show Receipts | 8,000 |
> | To Magazines | 2,400 | By Entrance Fees | 4,000 |
> | To Salaries | 2,400 |  |  |
> | To Rent | 8,000 |  |  |
> | To Surplus (excess of income over expenditure) | 6,100 |  |  |
> | **Total** | **28,500** | **Total** | **28,500** |
>
> **Notes (honest treatment of the extra information):**
> - **Computer Purchase Rs. 6,000** is capital expenditure (purchase of a fixed asset), so it is excluded from the Income and Expenditure Account and would instead appear in the Balance Sheet. …

Receipts	Amount	Payments	Amount
Opening Cash	3,000	Computer Purchase	6,000
Opening Bank Balance	9,000	Tournament Expenses	6,000
Subscriptions	16,000	Entertainment Show	3,600
Entertainment Show Receipts	8,000	Magazines	2,400
Entrance Fees	4,000	Salaries	2,400
		Rent	8,000
		Closing Cash	3,600
Total	40,000	Total	40,000

Expenditure	Amount (Rs.)	Income	Amount (Rs.)
To Tournament Expenses	6,000	By Subscriptions (16,000 + 750 − 250)	16,500
To Entertainment Show expenses	3,600	By Entertainment Show Receipts	8,000
To Magazines	2,400	By Entrance Fees	4,000
To Salaries	2,400
To Rent	8,000
To Surplus (excess of income over expenditure)	6,100
Total	28,500	Total	28,500

Working — Subscriptions for the year

Income and Expenditure Account for the year ended 31-03-2021

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