Explanation:

10.22 From the following information supplied by M.B.S. Club, PREPARE Receipts and Payments Account

and Income & Expenditure Account for the YEAR ended 31 March, 2019:

01.04.2018 31.03.2019

₹

₹

Outstanding Subscription

1.40.000 2.00,000

Advance Subscription

25.000

30.000

Outstanding Salaries

15.000

18.000

Cash in Hand and at Bank

1.10.000

2

10% Investment

1.40.000

70.000

Furniture

28.000

14.000

Machinery

10,000

20.000

Sports GOODS

15.000

25.000

Subscription for the year amounts to 3.00.000. Salaries paid 60.000. Face value of the investment

was 1.75,000. 50% of the investment was sold at 80% of Face Value. Interest on Investments was

received 14,000. Furniture was sold for 8,000 at the beginning of the year. Machinery and Sports

Goods purchased and put to use at the last date of the year. Charge depreciation @ 15% p.a. on Machinery

and Sports Goods and @ 10% p.a. on Furniture.

Following expenses were MADE during the year

Sports Expenses : 50.000

Rent * 24.000 out of which 2.000 outstanding

Misc. Expenses 35.000