Income & Expenditure Account: Accounting Treatment
From the following Receipts and Payment Account and additional information, prepare Income and Expenditure Account of GFG Organisation:
On 1st April,2021 ₹740 were unpaid subscriptions and ₹1,220 were unpaid on 31.3.2022. Rent Outstanding in the beginning as well as at the end of year was ₹3,400. Depreciation is to provided on Furniture of ₹1,750 (in the beginning of the year, it was worth ₹33,000 ) and on Books ₹1,890 (in the beginning of the year, it was worth ₹22,020 ). Salaries outstanding on 31.3.2022 was ₹1,200.
Prepare Income and Expenditure Account for Geeks Organisation from the information given below:
1. There are 270 members each paying an annual subscription of ₹75 and ₹1,000 being in arrears for 2020-21 in the beginning of the year.
2. Cost of Building is ₹20,500. Depreciate it by 8%.
3. Amounts outstanding on 31.3.2022- Postage ₹640 and Electricity charges ₹450.
4. ₹280 paid in advance for sundries.
5. Prepaid insurance premium ₹660 on 2021 and ₹ 1,060 on 2022.
1. Insurance Premium to be debited to Income & Expenditure A/c:
=Prepaid premium (Opening) + Paid during the year – Prepaid premium (Closing)
= ₹660 + ₹16,600 – ₹1,060
2. Subscription to be credited to Income & Expenditure A/c:
From the following information prepare Income and Expenditure Account of GG Club for the year ended on 31st March,2022:
1. 50% of the Donations are to be capitalized.
2. Loan from Bank was taken on 1st July,2021 at 15% p.a.
1. Member’s Subscriptions for the year 2021-22:
2. Interest on Bank Loan =
3. Profit from Tinned Provision Account:
4. Depreciation on Equipment Account:
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