Important Points :
In the beginning of the year, Subscription of Rs600 was in arrear but out of this amount, only Rs500 has been received during current year. Hence only Rs500 is deducted from the amount received on account of subscription.
Illustration 5.
On the basis of the information given bleow, calculate the amount of stationery
to be shown in the 'Income and Expenditure Account' of 'Vishvamitra Literary
Society' for the year ended March 31, 2011:
| April 1,2010 Rs. | March 31, 2011 Rs. | |
| Stock of stationery | 4,000 | 3,000 |
| Creditors for stationery | 4,500 | 5,500 |
Stationery puchased during the year ended March 31, 2011 was `23,500.
Solution :
Income and Expenditure Account for the year ended on March 31, 2011
Important Points :
1. Stationery used during current year only is shown in Income and Expenditure Account for the same year. 2. Creditors for Stationery is not considered because 'Stationery purchased during the year' is given and not 'Amount paid to Creditors during the year'.
Illustration 6
From the following informations of Arjun Sports Club, show the 'Sports
Material' in the 'Income and Expenditure Account' for the year ending March
31, 2011 and the Balance Sheets as on March 31, 2010 and March 31, 2011 :
| March 31, 2010 Rs. | March 31, 2011 Rs. | |
| Stock of sports material | 4,400 | 11,600 |
| Creditors for sports material | 15,600 | 18,400 |
| Advance to suppliers of sports material | 30,000 | 50,000 |
Payment to suppliers for the Sports Material during 2010-11 was `2,40,000.
No sports material purchased on cash basis during the year 2010-11.
CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari )
Email Id : [email protected]
