The Income and Expenditure Account of a club is given below (perhaps prepared by one who does not thoroughly knows the accounting principles).
Income and Expenditures as on Dec 31, 2008
|
Dr. |
Cr. |
||||
|
Expenditure |
Rs |
Income |
As |
||
|
To Balance b/d |
Rs |
4,100 |
By Salaries Paid |
Rs |
8,320 |
|
To Subscriptions for 2008, |
9,000 |
By Stationery Spent |
1,440 |
||
|
Add: Recd for 2007 |
160 |
Add: Stock of Stationery |
160 |
1.600 |
|
|
Add: Recd for 2009 |
320 |
9,480 |
By Telephone Expenses Paid |
400 |
|
|
To Interest received on |
2,000 |
(including paid for last year) |
|||
|
5% Rs 80,000 |
By Balance c/d |
5,260 |
|||
|
Investments in Hand on Jan 1, 2008 |
|||||
|
15,580 |
15,580 |
Additional Information
- On Dec 31, 2007, building stood at Rs 40,000, and it is required to write off depreciation at 5% p.a.
- Telephone rent outstanding on Dec 31, 2008: Rs 500.
- Subscription in arrears on account of 2008: Rs 400.
You are called upon to give your comments on this. Then you are required to prepare the revised final accounts of the items shown in the problem.