(Preparation of income and expenditure account only) Following is the Receipts and payments account of "Satara Sports Club" Satara Prepare Income and Expenditure Account for the year ending 31.03.2019

4. Following is the Receipts and payments account of "Satara Sports Club" Satara Prepare Income and Expenditure Account for the year ending 31.03.2019

Receipts and Payments Account for the year ending 31.03.2019.

Dr.                                                                                                   Cr.

Receipts	Amt ₹	Amt ₹	Payments	Amt ₹	Amt ₹
To Balance b/d			By Salaries		5,000
Cash in hand	4,500		By Rent (Including ₹ 2,000 for 2017-18)		5,000
Cash at Bank	12,000	16,500	By Electricity Charges		1,450
To Subscription			By fixed Deposit		60,000
2017-18	4,000		By Printing and Stationery		750
2018-19	44,500		By General Expenses (Including ₹ 500 paid for next year)		5,500
2019-20	3,500	52,000	By Sports material Purchased		40,000
To Entrance fees		8,000	By Balance c/d
To Donation for Building fund		70,000	Cash in hand	8,900
To Interest		600	Cash at bank	25,000	33,900
To Sale of furniture  (Book value ₹ 8,000)		4,500
		1,51,600			1,51,600

Adjustments:

1. Outstanding Subscription for Current Year is ₹ 4,500

2. Outstanding Rent for Current Year amounted to ₹ 1,000

3. Entrance Fees are to be treated as revenue Income.

4. Stock of Sports Material as on 01.04.2018 ₹ 6,000 and on 31.03.2019 ₹ 14,000

Solution:

In the Books of Satara Sports Club

Income and Expenditure Account for the year ending 31.03.2019.

Dr.                                                                                                                                    Cr.

Expenditure	Amount	Amount	Income	Amount	Amount
To Salaries		5,000	By Subscription	44,50
To Rent	5,000		(+) Outstanding subscription (Cy)	4,500	49,000
(+) outstanding rent (cy)  (-) Outstanding Rent (Ly)	1,000  2,000	4,000	By Entrance fees		8,000
To Electricity Charges		1450	By Interest		600
To Printing & Stationery		750
To general Expenses  (-) paid for next year	5,500  500	5,000
To Sports Material Purchased	40,000
(+) Opening Stock	6,000
(-) Closing Stock	14,000	32,000
To Lose on Sale of furniture (BV) ₹ 8,000		3,500
To Surplus		5,900
		57,600			57,600

Explanation: 

1. Outstanding Subscription for Current Year is ₹ 4,500

This is the Outstanding Subscription of the current year date 31.3.2019. In Income and Expenditure Account Income side will be added in Subscription.

2. Outstanding Rent for Current Year amounted to ₹ 1,000

Same explanation as Outstanding Subscription.

3. Entrance Fees are to be treated as revenue Income.

What does this statement means, Entrance fees are the Income for the business, revenue income means daily basis income. And Revenue Income is shown in the Income an expenditure Account in Income side.

4. Stock of Sports Material as on 01.04.2018 ₹ 6,000 and on 31.03.2019 ₹ 14,000

Stock of Sports Material date 01.04.2018 is Openeing Balance and 31.03.2019 is Closing Balance.