Following is the Receipt and Payment Account of Literacy Club for the year ended 31-3-2006.
Additional information :
(i) Subscriptions outstanding as on 31-3-2005 were Rs 2,000 and on 31-3-2006 Rs 2,500.
(ii) On 31-3-2006 salary outstanding was Rs 600 and rent outstanding was Rs 1,200.
(iii) The club owned furniture Rs 15,000 and books Rs 7,000 on 1-4-2005.
Prepare Income and Expenditure Account of the Club for the year ended 31-3-2006 and ascertain 'Capital Fund' on 31-3-2005. Also prepare a Balance Sheet as on 31st March, 2006.
as on 31st March, 2005
INCOME AND EXPENDITURE ACCOUNT
Dr for the year ending 31st March, 2006 Cr
*Subscription outstanding on 31-3-2006 is Rs 2,500 which includes the subscription outstanding for the year 2004-05 Rs 800 (i.e, Rs 2,000 - Rs 1,260 received during 2005-06). Hence, the subscription outstanding for 2005-06 is Rs 1,700 (i.e., Rs 2,500 - Rs 800). It should be noted that there is a difference between subscription outstanding on 31-3-2006 and subscription outstanding for 2005-06 (Which indicates subscription outstanding only for 2005-06).
as on 31st March, 2006