Financial Statements and Analysis Test - 16

Amount of stationery to be shown in income and expenditure on Expenditure side (Dr Side) = amount paid for stationery + stock at the beginning of the year + outstanding creditors at the end of the year  - outstanding creditors at the beginning of the year - stock at the end of the year.
Amount to be shown in income and expenditure = 21600 + 6000 +2600-1000 -4000 =Rs. 25200

Subscription to be shown on the cr. side of income and expenditure account = Subscription received + outstanding subscription at the year end - outstanding subscription at the beginning of the year

Subscription to be shown on the cr. side of income and expenditure account = 50000+8000-6000= Rs. 52000

Salaries to be shown in income and expenditure = salary paid + advance salary at the beginning of the year + outstanding salary at the end of the year - advance salary at the end of the year -outstanding salary at the beginning of the year

Salaries to be shown in income and expenditure = 10200 + 1200 +750 - 600 - 900 =Rs. 10650

Subscription to be shown in income and expenditure account = subscription received+ outsatnding subscription at the end - outstanding subscription at the beginning of year - advance subscription at the end of the year + advance subscription at the beginning of the year

Subscription to be shown in income and expenditure account = 250000+10000-9500-8700+6200= Rs. 248000

Amount to be debited to income and expenditure as Sports material consumption= Amount paid + Opening Stock -closing stock - opening creditors + Closing creditors. Amount to be debited to income and expenditure= 19000+7500-6400-2000+2600= Rs. 20,700

Specific donation are provided with restriction for which they can be use like doantion for building to construct building etc. They are in capital nature and to be shown in the balance sheet on the liability side.

Subscription during the year = subcription received + advance subscription at the beginning - advance subscription at the end - outstanding subscription at the beginning - outstanding subscription at the end

Subscription during the year = 15000+2500-3000-6000+4000

Subscription during the year - Rs. 12500

-if the amount in tournament fund and tournament income is greater than the amount of tournament expense then amount is to be shown on liability side of balance sheet.

-if the amount in tournament fund and tournament income is less than the amount of tournament expense then amount is to be shown on Dr. side of income and expenditure as expense.

So, it can be recorded in both income and expenditure but depands on situation that may arise.

Subscription at the end of the year is an assets which is to be shown in the balance side and with that it to be added to subscription in income and expenditure account.

we can calculate susbcription by :- Susbcription Received during year + outstanding Subscription at the end -outstanding subscription at the beginning of the year

income and expenditure account is prepared by non trading concern. Non trading concern are like NPO which do not have any profit motive and only provide services so they dont prepare any manufacturing or profit and loss account instead they prepare income and expenditure account.