Question

Following is the Receipts and Payments Account of Queen's Club, Kolkata for the year ended 31st March, 2014 :

$\begin{array}{cccc}\text{Receipts}& \text{Rs}& \text{Payments}& \text{Rs}\\ \text{Balance b/d (1-4-2013)}& & \text{Rent, Rates}\&\text{Taxes}& 15,000\\ \text{Cash}& 3,600& \text{Advertisement}& 2,700\\ \text{Current A/c with Bank}& 7,570& \text{Salaries}& 27,400\\ \text{Subscriptions}& 42,200& \text{Insurance Premium}& 1,200\\ \text{Entrance fees}& 3,800& \text{Electric Charges}& 2,500\\ \text{Life Membership Fees}& 6,000& \text{Telephone Expenses}& 2,400\\ \text{Interest on Investments}& 200& \text{Furniture (Purchased on}& \\ & & \text{1st October, 2013)}& 8,000\\ & & \text{Balance c/d (31-3-2014): -}& \\ & & \text{Cash}& 2,400\\ & & \text{Current A/c with Bank}& 1,770\\ & \underset{–}{\overline{63,370}}& & \underset{–}{\overline{63,370}}\end{array}$

Prepare Income and Expenditure A/c of the club for the year ended 31st March, 2014 and a Balance Sheet as at that date having due regard for the following information:

Rs

(1) Subscriptions Outstanding on 31st March 2013 4,000

Subscriptions Outstanding on 31st March, 2014 5,400

Subscriptions Received in advance on 31st March, 2013 1,500

Subscriptions Received in advance on 31st March, 2014 2,100

(2) Two months rent Rs 2,500 was due both at the beginning and end of the year.

(3) As on 31st March, 2013, Premises stood in the books at Rs 55,000 and Investments at Rs 20,000. Depreciate furniture by 10% p.a.

Answer 1

Balance Sheet
as at 31st March, 2013
$\begin{array}{cccc}\text{Liabilities}& \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Subscriptions Received in}& & \text{Cash in hand}& 3,600\\ \text{Advance}& 1,500& \text{Cash at Bank}& 7,570\\ \text{Outstanding Rent}& 2,500& \text{Outstanding Subscriptions}& 4,000\\ \text{Capital Fund (Balancing figure)}& 86,170& \text{Investments}& 20,000\\ & & \text{Premises}& 55,000\\ & \underset{–}{\overline{90,170}}& & \underset{–}{\overline{90,170}}\end{array}$

Income and Expenditure Account for the year ending 31st March, 2014
Dr Cr.
$\begin{array}{cccccc}\text{Expenditure}& & \text{Rs}& \text{Income}& & \text{Rs}\\ \text{Rent, Rates}\&\text{Taxes}& 15,000& & \text{Subscriptions}& 42,200& \\ \text{Less : Due at the beginning}& \underset{–}{2,500}& & \text{Less : Outstanding on}& & \\ & 12,500& & \text{31-3-2013}& \underset{–}{4,000}& \\ \text{Add : Due at the end}& \underset{–}{2,500}& 15,000& & 38,200& \\ \text{Advertisement}& & 2,700& \text{Add : Outstanding on}& & \\ \text{Salaries}& & 27,400& \text{31-3-2014}& \underset{–}{5,400}& \\ \text{Insurance Premium}& & 1,200& & 43,600& \\ \text{Electric Charges}& & 2,500& \text{Add : Received in Advance}& & \\ \text{Telephone Expenses}& & 2,400& \text{on 31-3-2013}& \underset{–}{1,500}& \\ \text{Depreciation on furniture on}& & & & 45,100& \\ \text{Rs 8,000 at}10\%\text{for 6 months}& & 400& \text{Less : Received in Advance}& & \\ & & & \text{on 31-3-2014}& \underset{–}{2,100}& 43,000\\ & & & \text{Entrance Fees}& & 3,800\\ & & & \text{Interest on Investments}& & 200\\ & & & \text{Excess of Expenditure over}& & \\ & & & \text{income (Deficit)}& & 4,600\\ & & \underset{–}{\overline{51,600}}& & & \underset{–}{\overline{51,600}}\end{array}$

Balance Sheet
as at 31st March, 2014
$\begin{array}{cccccc}\text{Liabilities}& & \text{Rs}& \text{Assets}& & \text{Rs}\\ \text{Subscription received in Advance}& & 2,100& \text{Cash in hand}& & 2,400\\ \text{Outstanding Rent}& & 2,500& \text{Cash at Bank}& & 1,770\\ \text{Life Membership Fees}& & 6,000& \text{Outstanding Subscriptions}& & 5,400\\ \text{Capital Fund}& 86,170& & \text{Investments}& & 20,000\\ \text{Less : Deficit}& \underset{–}{4,600}& 81,570& \text{Furniture}& 8,000& \\ & & & \text{Less : Depreciation}& \underset{–}{400}& 7,600\\ & & & \text{Premises}& & 55,000\\ & & \underset{–}{\overline{92,170}}& & & \underset{–}{\overline{92,170}}\end{array}$