Page 89 - VIRANSH COACHING CLASSES

Adjustments :
1) Outstanding Rent for the current year was ` 7,000.
2) 60 % Entrance fees should be capitalised.
3) Outstanding subscription for the current year was ` 20,000.

4) Prepaid Insurance ` 1,000.

Solution :
In the books of Venna Cultural Association, Satara
Income and Expenditure Account
for the year ended 31 March 2020
st
Dr. Cr.
Expenditure Amount Amount Income Amount Amount
` ` ` `
To Rent 54,300 By Subscriptions 1,00.000

Add : Outstanding 7,000 61,300 Add : Outstanding
Subscription 20,000 1,20,000

To Sundry Expenses 8,000 By Donations 25,000
To Insurance 12,000 By Entrance fees 15,000
Less : Prepaid Insurance 1,000 11,000 Less : 60 % Capitalised 9,000 6,000
To Printing & Stationery 6,000 By Interest on Fixed 4,800
To Picnic Expenses 18,000 Deposit
To Salaries 20,000 By Picnic Receipts 20,000

To Traveling Expenses 13,000
To Surplus (Excess 38,500
of Income over
Expenditure)
1,75,800 1,75,800

Note : Picnic Expenses may be deducted form picnic receipts.
6 : The following are the details of Subscription, as per Receipts and Payments Account.
Subscription received during the year 2018 - 19 ` 50,000 Subscription outstanding on 31
st
March 2018 ` 10,000. Subscription outstanding on 31 March 2019 ` 20,000. Subscription
st
st
received in advance as on 31 March 2018 ` 15,000. Subscription received in advance as on
31 March 2019 ` 10,000
st
You are required to show its presentation in Income and Expenditure Account for the year
ended 31 March 2019 and a Balance Sheet as on that date.
st

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