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.
| Receipts | Amount (Rs.) | Payments | Amount (Rs.) |
|---|---|---|---|
| To Balance | 9,200 | By Salaries | 8,000 |
| To Subscriptions | 27,000 | By Ground Moving machine | 4,000 |
| To Tournament fund | 10,000 | By Rent | 1,800 |
| To Legacies | 6,000 | By General expenses | 14,000 |
| To Entrance fee | 1,000 | By Tournament expenses | 4,000 |
| To Donation for ground | 16,000 | By Office expenses | 9,000 |
| To Sale of Grass | 800 | By Purchase of Sports material | 6,000 |
| By Balance c/d | 23,200 | ||
| 70,000 | 70,000 |
Additional Information
- Subscriptions received included amount Rs. 2,200 related to the previous year.
- Outstanding subscription Rs. 1,000.
- Provide Rs. 300 depreciation on ground moving machine.
- Sports material opening balance Rs. 4,000 and closing balance Rs. 7,500.
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Start your 14-day free trial to unlock the full solution →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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