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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.

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Solution

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


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