From the following Receipts and Payments Account of Finance Professionals Club . Receipts and Payments Account for the year ended 31st March, 2024…

CA Foundation · Accounting · RTP · May 2025
From the following Receipts and Payments Account of Finance Professionals Club . Receipts and Payments Account for the year ended 31st March, 2024 Receipts ₹ Payments ₹ To Cash in Hand (Opening) 67,500 By Salaries 7,42,500 To cash at Bank (Opening) 18,90,000 By Stationery 1,34,550 To Subscriptions 22,86,000 By Billard Table 8,70,750 To Donations 10,80,000 By Investments 9,29,700 To Interest on Investments 27,000 By Miscellaneous Expenses 1,12,500 To Entrance Fees 2,70,000 By Furniture 18,45,000 To Interest Received from Bank 94,500 By Insurance Premium 40,500 To Sale of Old Newspapers 13,500 By Cash in Hand (Closing) 49,500 By Cash at Bank (Closing) 10,03,500 57,28,500 57,28,500 (i) Subscriptions in arrears for the year ended 31st March, 2024-2,02,500 and Subscriptions received in advance during the year ended 31st March, 2024 -58,500. (ii) Insurance Premium prepaid is 4,500. (iii) The detail with respect to Stationery of Accountants Club is as follows: 1 st April, 2023 (₹) 31 st March, 2024 (₹) Stock of Stationery 7,500 45,000 Creditors for Stationery 39,000 60,000 Advance paid for Stationery purchased during the year 10,500 Prepare the Income and Expenditure Account for the year ended 31st March, 2024. As per the club rules, donations are to be capitalized and entrance fees is the income of club.

Suggested Answer and Working Notes:

Finance Professionals Club Income and Expenditure Account for the year ended 31st March, 2024 Expenditure ₹ Income ₹ To Salaries 7,42,500 By Subscriptions 22,86,000 To Stationery (WN.2) 1,07,550 Add: Arrears 2,02,500 To Miscellaneous Expenses 1,12,500 24,88,500 To Insurance Premium 40,500 Less: Advance (58, 500) Less: Prepaid (4, 500) 36,000 To Surplus - Excess of Income over Expenditures 18,36,450 By Entrance Fees 2,70,000 By Interest on Investments 27,000 By Interest Received from Bank 94,500 By Sale of Old Newspapers 13,500 28,35,000 28,35,000 Working Note: Computation of consumption of Stationery during the year 1. Creditors for Stationery Account Particulars ₹ Particulars ₹ To bank A/c (Paid) 1,34,550 By Balance b/d 39,000 To Balance c/d 60,000 By Stock of Stationery A/c (Balancing Figure) 1,45,050 By advance paid for stationary purchased 10,500 1,94,550 1,94,550 2. Stock of Stationery Account Particulars ₹ Particulars ₹ To Balance b/d 7,500 By Income and Expenditure A/c (Bal. Fig.) (Stationery Consumed) 1,07,550 To Creditors for Stationery A/c (Transfer) 1,45,050 By Balance c/d 45,000 1,52,550 1,52,550

Topics: Financial Statements of Not-for-Profit Organisations

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