Prepare income and expenditure a/c of Tirupathi Club from the following receipts and payments a/c, for the year ending 31-Dec-2022.

| Receipts | ₹ | Payments | ₹ |
| --- | --- | --- | --- |
| To Balance b/d. | 1,000 | By Salaries | 6,000 |
| To Subscriptions (Including ₹ 700, fo

Question

Prepare income and expenditure a/c of Tirupathi Club from the following receipts and payments a/c, for the year ending 31-Dec-2022.

| Receipts | ₹ | Payments | ₹ |
| --- | --- | --- | --- |
| To Balance b/d. | 1,000 | By Salaries | 6,000 |
| To Subscriptions (Including ₹ 700, for 2023) | 6,600 | By Rent and Taxes | 1,700 |
| To Interest on investments | 2,000 | By Stationery | 200 |
| To Bank Interest | 550 | By postage | 30 |
| To Sale of Furniture | 500 | By cycle purchase | 1,800 |
| | | By Balance c/d | 920 |
| | 10,650 | | 10,650 |

Adjustments :
(a) Rent paid included ₹ 200 for December, 2021.
(b) Salaries payable ₹ 900.
(c) Subscriptions received included ₹ 600 for the year 2021.
(d) Subscriptions Due for the year 2022, ₹ 400.
(e) Cost of Furniture sold ₹ 800.

Accepted Answer

>

> [!TLDR]
> Only revenue items of 2022 enter the Income & Expenditure Account. Subscriptions are adjusted to ₹5,700; salaries become ₹6,900 (add ₹900 payable); rent becomes ₹1,500 (remove ₹200 of 2021); the furniture sold at ₹500 against cost ₹800 gives a ₹300 loss; cycle purchase (₹1,800) is capital and excluded. Expenditure ₹8,930 exceeds income ₹8,250, so there is a deficit of ₹680.
>
> This is a standard AP Inter 2nd-year (Commerce) not-for-profit question; the adjustments follow the NCERT/CBSE-aligned commerce treatment.
>
> **Working — Subscriptions for 2022**
>
> | Particulars | ₹ |
> | --- | --- |
> | Subscriptions received during the year | 6,600 |
> | Less: Received in advance for 2023 | (700) |
> | Less: Arrears of 2021 received this year | (600) |
> | Add: Subscriptions due (outstanding) for 2022 | 400 |
> | **Subscriptions income for 2022** | **5,700** |
>
> **Income and Expenditure Account of Tirupathi Club for the year ended 31 December 2022**
>
> | Expenditure | ₹ | Income | ₹ |
> | --- | --- | --- | --- |
> | To Salaries (6,000 + 900 payable) | 6,900 | By Subscriptions (as computed) | 5,700 |
> | To Rent & Taxes (1,700 − 200 of 2021) | 1,500 | By Interest on Investments | 2,000 |
> | To Stationery | 200 | By Bank Interest | 550 | …

Adjustment	Treatment
Subscriptions received	+ outstanding for this year, − received in advance, − last year's arrears now received
Expenses paid	+ outstanding, − prepaid
Depreciation on assets	Debit (non-cash expense)
Bad debts / provisions	Debit

Receipts	Amount	Payments	Amount
Cash in hand	150	Ground man's Fee	1,125
Balance at Bank as per Pass Book :		Moving Machine	2,250
– Deposit Account	3,345	Ground Rent	375
– Current Account	900	Cost of Teas	375
Bank Interest	45	Fares	600
Donations and Subscriptions	3,900	Printing & Office Expenses	420
Receipts from teas	450	Repairs to Equipment	750
Contribution to fares	150	Honorarium to Secretary and Treasurer of 2024	600
Sale of Equipment	120	Balance at Bank as per Pass Book:
Net proceeds of Variety Entertainment	1,170	– Deposit Account	4,635
Donation for forthcoming Tournament	1,500	– Current Account	225
		Cash in hand	375
Total	11,730	Total	11,730

Particulars	April 1, 2024	March 31, 2025
Subscription due	225	150
Amount due for printing, etc.	150	120
Cheques unpresented being payment for repairs	450	390
Estimated value of machinery and equipment	1,200	2,625
Interest not yet entered in the Pass book		30
Bonus to Ground man outstanding		450

Liabilities	Amount ₹	Assets	Amount ₹
Trade Creditors	19,275	Land and Building	37,500
Outstanding Liabilities	2,250	Furniture	9,750
General Reserve	9,750	Closing Stock	17,625
Capital :		Sundry Debtors	8,250
A 18,000		Cash and Bank balance	1,650
B 18,000
C 7,500	43,500
Total	74,775	Total	74,775

Particulars	₹
Opening estimated value	1,200
Add: Mowing machine purchased	2,250
Less: Sale proceeds of equipment	(120)
Less: Closing estimated value	(2,625)
Depreciation (balancing figure)	705

Concept understanding — Income and Expenditure Account

How it differs from Receipts & Payments

Preparing it (the adjustments)

Part (a) — Income & Expenditure A/c and Balance Sheet (12 Marks)

Step 1 — Working notes (accrual adjustments)

Step 2 — Opening Balance Sheet (1 April 2024) → the Capital Fund

Step 3 — Income & Expenditure Account for the year ended 31 March 2025

Receipts	₹	Payments	₹
To Balance b/d.	1,000	By Salaries	6,000
To Subscriptions (Including ₹ 700, for 2023)	6,600	By Rent and Taxes	1,700
To Interest on investments	2,000	By Stationery	200
To Bank Interest	550	By postage	30
To Sale of Furniture	500	By cycle purchase	1,800
		By Balance c/d	920
	10,650		10,650

Particulars	₹
Subscriptions received during the year	6,600
Less: Received in advance for 2023	(700)
Less: Arrears of 2021 received this year	(600)
Add: Subscriptions due (outstanding) for 2022	400
Subscriptions income for 2022	5,700

Expenditure	₹	Income	₹
To Salaries (6,000 + 900 payable)	6,900	By Subscriptions (as computed)	5,700
To Rent & Taxes (1,700 − 200 of 2021)	1,500	By Interest on Investments	2,000
To Stationery	200	By Bank Interest	550

Liabilities	₹	Assets	₹
Creditors for printing	150	Cash in hand	150
Honorarium outstanding (2024)	600	Bank — Deposit A/c	3,345
Capital Fund (bal. fig.)	4,620	Bank — Current A/c (900 − 450)	450
		Subscription due	225
		Machinery & equipment	1,200
Total	5,370	Total	5,370

Expenditure	₹	Income	₹
To Ground man's fee (1,125 + 450)	1,575	By Subscriptions & Donations (W1)	3,825
To Ground rent	375	By Bank interest (W3)	75
To Cost of teas	375	By Receipts from teas	450
To Fares	600	By Contribution to fares	150
To Printing & office exp. (W2)	390	By Net proceeds of variety entertainment	1,170
To Repairs to equipment (W7)	690
To Honorarium (W4)	900
To Depreciation (W6)	705
To Surplus (excess of income over exp.)	60

🎓Unlock everything free for 14 days

Unlock everything free for 14 days