Entrance donations received during the year ended 31.3.2014 = Rs. 1,00,000.
Entrance donation received pending membership on 1.4.2013 = Rs. 1,00,000
50% of the entrance donation was to be capitalized. There was no pending membership as on 31st March 2014. A sum of Rs. 20,000 received in October 2013 as entrance donation from an applicant was to be refunded as he has not fulfilled the requisite membership qualifications. There fund was made on 03.06.2014. Amount to be credited to Income & Expenditure A / c for Entrance Donation = ?

1,10,000

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90,000

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2,00,000

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1,80,000

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Solution

The correct option is B 90,000
Dr. Entrance Donation A/c Cr.
To Capital Fund expenses
To Income & Expenditure
To Entrance Donation refundable
90,000
90,000
20,000
$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 00, 000$ By Balance b/d
By Receipt & Payment A/c

1,00,000
1,00,000

$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 00, 000$

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Similar questions

Q. How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2018 in each of the following alternative cases?

Case I During the year ended 31st March, 2018, Entrance Fees received was ₹ 1,00,000.

Case II During the year ended 31st March, 2018, Entrance Fees received was ₹ 1,00,000.Out of this , ₹ 25,000 was received from individuals whose membership is not yet approved.

During an year, a club received Rs 1,00,000 as entrance fees. According to the policy of the club, 40% of the entrance fees is to be capitalized. What amount shall be entered in Income & Expenditure account.

From the following Receipts and Payments Account of a Cricket club and the additional information, prepare an Income and Expenditure Account for the year ended on 31st March, 2014 and a Balance Sheet as at that date :

$\begin{matrix} Receipts & Rs & Payments & Rs Balance b/d : & Crockery purchased & 2, 650 Cash & 3, 520 & Maintenance & 6, 820 Bank & 27, 380 & Match Expenses & 13, 240 Fixed Deposit at 6 % p.a. & 30, 000 & Salaries & 11, 000 Membership Subscription & Conveyance & 820 (including Rs 6,000 for the year & Upkeep of lawn & 4, 240 year ending 31st March, 2013) & 40, 000 & Postage Stamps & 1, 050 Entrance Fees & 2, 750 & Purchase of Cricket Materials & 9, 720 Donation & 5, 010 & Sundry Expenses & 2, 000 Interest on Fixed Deposit & 900 & Investments & 5, 700 Tournament Fund & 20, 000 & Tournament Expenses & 18, 800 Sales of Crockery & Balance c/d : (Book value Rs 1,200) & 2, 000 & Cash & 2, 200 Bank & 23, 320 Fixed Deposit at 6 % p.a. & 30, 000 - ------ - & 55, 520 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 31, 560 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 31, 560 - -------- - \end{matrix}$

Informations :- (a) Monthly Salary is Rs 1,000;

(b) The value of unused Postage Stamps is as follows :

31st March, 2013, Rs 750;

31st March, 2014, Rs 900.

31st March, 2013, Rs 3,210;

31st March, 2014, Rs 2,800.

(d) Arrear of membership subscriptions :

On 31st March, 2013, Rs 6,600;

On 31st March, 2014, (for 2013-14) Rs 8,000.

(e) Donation and Entrance Fees are not to be capitalised

How will you deal with the Entrance Fees while preparing the final accounts of New Delhi Sports Club for the year ended 31st March, 2017 in each of the following cases:

Case 1. During the year 2016-17, Entrance Fees received Rs
1,20,000.

Case 2. During the year 2016-17, Entrance Fees received Rs 1,20,000. It is the policy of the club to treat the Entrance Fees as ' Revenue Receipt'.

Case 3. During the year 2016-17, Entrance Fees received Rs 1,20,000. It is the policy of the club to treat the Entrance Fees as 'Capital Receipt'.

Case 4. During the year 2016-17, Entrance Fees received Rs 1,20,000. According to the policy of the club, 30% of the Entrance Fees is to be capitalised.

The following particulars relate to Madras Club for the year 31st March, 2018.

$Dr RECEIPTS AND PAYMENTS ACCOUNT Cr \begin{matrix} Receipts & Amount & Payments & Amount (Rs) & (Rs) To Balance b/d & 60, 000 & By Salaries & 1, 24, 500 To Subscription : & By Stationery & 24, 000 2016 - 17 & 2, 400 & By Rent & 36, 000 2017 - 18 & 1, 26, 600 & By Telephone Expenses & 6, 000 2018 - 19 & 4, 800 - ---- - & 1, 33, 800 & By Furniture & 75, 000 To Income from canteen & 90, 000 & By Advertisements & 10, 500 To Miscellaneous & 4, 500 & By Postage & 10, 000 To Sale of Old Assets & 11, 200 & By Sundry Expenses & 50, 000 To Interest & 48, 000 & By Balance b/d & 1, 72, 000 To Donation & 1, 00, 000 To Entrance Fees & 60, 000 Total & 5, 08, 000 & Total & 5, 08, 000 \end{matrix}$
You are required to prepare an Income and Expenditure Account and Balance Sheet after making the following adjustments:

(i) There are 450 members each paying a monthly subcription of Rs 25, Rs 2,700 being arrears of 2016-17 on 1-04-2017.

(ii) A donation of Rs 20,000 was wrongly recorded as interest income.

(iii) Entire donation and half of entreance fees are to be capitalised.

(iv) Stock of stationery on 01-04-2017 was Rs 3,000 and on 31-03-2018 was Rs 5,400.

(v) Cost of building is Rs 6,00,000 on 01-04-2017, depreciate it at 5% p.a. Furniture valued at Rs 75,000 was purchased on 31-03-2018.

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