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Q.

From the following information, prepare income and expenditure account for the year ended 31-03-2020 of 'Kamareddy Cricket Club'.

Dr. Receipts and Payments Account Cr.

ReceiptsAmount (Rs.)PaymentsAmount (Rs.)
To Balance9,200By Salaries8,000
To Subscriptions27,000By Ground Moving 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/d23,200
70,00070,000

Additional Information

  1. Subscriptions received included amount Rs. 2,200 related to the previous year.
  2. Outstanding subscription Rs. 1,000.
  3. Provide Rs. 300 depreciation on ground moving machine.
  4. Sports material opening balance Rs. 4,000 and closing balance Rs. 7,500.
Telangana TsbieTSBIE Telangana Intermediate (2nd Year) Commerce Board 2026Subjective· 10mImportance★★★★★est
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Subscriptions = 27,000 - 2,200 (previous year) + 1,000 (outstanding) = Rs. 25,800. Entrance fee Rs. 1,000 and sale of grass Rs. 800 are income. Sports material consumed = 4,000 + 6,000 - 7,500 = Rs. 2,500. Tournament fund, legacies and donation for ground are capital receipts (tournament expenses set off against the fund); only Rs. 300 depreciation on the machine is charged. Result: a deficit of Rs. 8,000.

Working notes

  • Subscriptions: 27,000 - 2,200 (relating to previous year) + 1,000 (outstanding of current year) = Rs. 25,800.
  • Tournament fund Rs. 10,000 is a specific fund (capital); tournament expenses Rs. 4,000 are met out of this fund, so neither enters the Income and Expenditure A/c.
  • Legacies Rs. 6,000 and Donation for ground Rs. 16,000 are capital receipts and are excluded.
  • Ground moving machine Rs. 4,000 is capital expenditure; only depreciation Rs. 300 is charged.
  • Sports material consumed = Opening 4,000 + Purchases 6,000 - Closing 7,500 = Rs. 2,500.

Income and Expenditure Account for the year ended 31-03-2020

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