Question

Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March ,2018:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March , 2018
Dr.					Cr.
Receipts		₹	Payments	₹
To Opening Cash		18,000	​By Building	4,00,000
To Donations for Building		4,50,000	By Project Expenses(Young Talent Search and Development)	90,000
To Donations		50,000
To Government Grant (Young Talent Search and Development)		1,00,000	By Match Expenses By Match Furniture	90,000 1,21,000
To Life Membership Fees		40,000	By 10% Investments	1,60,000
To Match Fund		80,000	( Purchased on 1st July,2017)
To Subscriptions		52,000	By Salaries	70,000
To Locker Rent		4,000	By Insurance	3,500
To Interest on Investments		10,000	By Sundry Expenses	4,700
To Sale of Furniture		1,00,000	By Closing Cash	4,800
(Book value ₹ 80,000)			By Bank (Young Talent	10,000
To Entrance Fees		50,000	Search and Dev
		3,000
		9,54,000		9,54,000

Additional Information:
(i) During the year ended 31st March , 2018, the club had 550 members and each paying an annual subscription of ₹ 100.
(ii) Salaries Outstanding as at 1st April , 2017 were ₹ 10,000 and as at 31st March ,2018 were ₹ 5,000.
Prepare Income and Expenditure Account of the Club for the year ended 31st March , 2018.

Answer 1

Books of Delhi Football Club
Income and Expenditure Account for the year ended March 31, 2018
Dr.							Cr.
Expenditure			Amount (Rs)	Income		Amount (Rs)
Salaries		70,000		Subscriptions (550 members × Rs 100 each)		55,000
Add: Outstanding at the end		5,000		Entrance Fees		50,000
Less: Outstanding in the beginning		(10,000)	65,000
Insurance			3,500	Donations		50,000
Sundry Expenses			4,700	Locker Rent		4,000
Match Expenses		90,000		Profit on Sale of Furniture (1,00,000 - 80,000)		20,000
Less: Match Fund		(80,000)	10,000	Interest on Investment	10,000
Surplus (Balancing Figure)			1,07,800	Add: Accrued Interest	2,000	12,000
			1,91,000			1,91,000

Working Notes:

Calculation of Interest Accrued on Investment

Interest on Investment for 9 Months (1,60,000 × 10% × 9/12)	12,000
Less: Interest Received	(10,000)
Accrued Interest on Investment	2,000