Question

Following is the information in respect of certain items of a Sports Club. You are required to show them in the Income and Expenditure Account and the Balance Sheet.

Details	Amount Rs
Sports Fund as on April 1, 2005	80,000
Sports Fund Investments	80,000
Interest on Sports Fund Investments	8,000
Donations for Sports Fund	30,000
Sports Prizes awarded	16,000
Expenses on Sports Events	7,000
General Fund	2,00,000
General Fund Investments	2,00,000
Interest on General Fund Investments	20,000

Answer 1

Income and Expenditure Account as on December 31, 2006
Dr.					Cr.
Expenditure		Amount Rs	Income	Amount Rs
			Interest on General Fund Investments	20,000

Balance Sheet as on March 31, 2006
Liabilities		Amount Rs	Assets	Amount Rs
Sports Fund	80,000		Sports Fund Investments	80,000
Add: Interest on Sports Fund			General Fund Investments	2,00,000
Investments	8,000
Add: Donation for Sports Fund	30,000
	1,18,000
Less: Sports Prizes Awarded	(16,000)
Less: Expenses on Sports Events	(7,000)	95,000
General Fund		2,00,000