From the following Receipts and Payments Account of a social club and from the information, you are required to prepare an Income and Expenditure Account, for the year ended 31st December, 2008
Receipts and Payment Account for the Year Ending Dec 31, 2008
|
Dr. |
Cr. |
||
|
Receipts |
Rs |
Payments |
Rs |
|
To Balance b/d |
850 |
By Salaries |
2,400 |
|
To Subscriptions |
By General Expenses |
800 |
|
|
2007: Rs 500 |
By Electric Charges |
700 |
|
|
2008 : Rs 2,000 |
By Books |
1,100 |
|
|
2009: Rs 400 |
2,900 |
By Newspapers |
500 |
|
To Rent Received |
1,200 |
By Balance c/d |
500 |
|
To Profit from Entertainment |
950 |
||
|
To Sale of Newspapers |
100 |
||
|
6,000 |
6000 |
Information
- The club has 100 members each paying an annual subscription of Rs 25, subscription outstanding on Dec 31, 2007 were Rs 600.
- On Dec 31, 2008 salaries outstanding amounted to Rs 250. Salaries paid in 2008 included Rs 500 for the year 2007.
- On Jan 1, 2008, the club owned building valued at Rs 50,000, furniture Rs 5,000 and books Rs 4,000.
- Provide depreciation on furniture @ 10% p.a.