Question

From the following cash transactions relating to Royal Club, Green Park, prepare Income and Expenditure account for the year ended 31st March, 2014 and a Balance Sheet as at that date :

$\begin{array}{cccc}\text{Receipts}& \text{Rs}& \text{Payments}& \text{Rs}\\ \text{Cash in hand on 1st April, 2013}& 4,900& \text{Salaries}& 20,100\\ \text{Subscriptions (including Rs 800}& & \text{Travelling Expenses}& 8,600\\ \text{for the year ending 31-3-2015)}& 52,100& \text{Printing}\&\text{Stationery}& 1,720\\ \text{Donations}& 6,000& \text{Rent}& 16,600\\ \text{Proceeds from charity show}& 16,200& \text{Repairs}& 450\\ \text{Sale of Furniture}& & \text{Building purchased}& 30,000\\ \text{(Book value Rs 4,000)}& 1,600& \text{Government Bonds}& 5,000\\ \text{Life membership fees}& 9,000& \text{Balance c/d on 31-3-2014}& 32,130\\ \text{Interest on Investments}& & & \\ \text{(Cost of Investments Rs 40,000)}& 4,800& & \\ \text{Sale of old car}& 20,000& & \\ & \underset{–}{\overline{1,14,600}}& & \underset{–}{\overline{1,14,600}}\end{array}$

On 1-4-2013, the club owned land and building valued at Rs 40,000 and furniture valued at Rs 10,500. There were 150 life members on that date, each of whom had paid subscription of Rs 100. the book value of car was Rs 25,000.

Subscriptions due on 31st March, 2013 and on 31st March 2014 were Rs 3,400 and Rs 2,000 respectively, Similarly, interest on Investments due at the beginning of the year was Rs 800 and at the end of the year was Rs 1,000.

Answer 1

Opening Balance sheet
as at 1st April, 2013
$\begin{array}{cccc}\text{Liabilities}& \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Life Membership Fees}& & \text{Cash in hand}& 4,900\\ \text{(150 members @ Rs 100 each)}& 15,000& \text{Outstanding Subscriptions}& 3,400\\ \text{Capital Fund (Balancing figure)}& 1,09,600& \text{Accrued interest}& 800\\ & & \text{Investments}& 40,000\\ & & \text{Land and Building}& 40,000\\ & & \text{Furniture}& 10,500\\ & & \text{Car}& 25,000\\ & \underset{–}{\overline{1,24,600}}& & \underset{–}{\overline{1,24,600}}\end{array}$

Income and Expenditure Account
for the year ended 31st March, 2014 Dr. Cr.
$\begin{array}{ccccc}\text{Expenditure}& \text{Rs}& \text{Income}& & \text{Rs}\\ \text{Salaries}& 20,100& \text{Subscriptions}& 52,100& \\ \text{Travelling Expenses}& 8,600& \text{Less : Advance Subscrip-}& & \\ \text{Printing and Stationery}& 1,720& \text{tion received for the}& & \\ \text{Rent}& 16,600& \text{year ending 31-3-2015}& \underset{–}{800}& \\ \text{Repairs}& 450& & 51,300& \\ \text{Loss on sale of Furniture}& & \text{Less : Outstanding}& & \\ \text{(Rs 4,000 - Rs 1,600)}& 2,400& \text{Subscription for 2013}& \underset{–}{3,400}& \\ \text{Loss on sale of Car}& & & 47,900& \\ \text{(Rs 25,000 - Rs 20,000)}& 5,000& \text{Add : Outstanding}& & \\ \text{Excess of Income over}& & \text{Subscription for 2014}& \underset{–}{2,000}& 49,900\\ \text{Expenditure (Surplus)}& 22,230& \text{Donations}& & 6,000\\ & & \text{Proceeds from Charity show}& & 16,200\\ & & \text{Interest on Investments}& 4,800& \\ & & \text{Less : Accrued interest}& & \\ & & \text{at the beginning}& \underset{–}{800}& \\ & & & 4,000& \\ & & \text{Add : Accrued interest}& & \\ & & \text{at the end}& \underset{–}{1,000}& 5,000\\ & \underset{–}{\overline{77,100}}& & & \underset{–}{\overline{77,100}}\end{array}$

Balance Sheet as at 31st March, 2014
$\begin{array}{cccccc}\text{Liabilities}& & \text{Rs}& \text{Assets}& & \text{Rs}\\ \text{Subscriptions for the year ending}& & & \text{Cash in hand}& & 32,130\\ \text{31st March, 2015}& & & \text{Outstanding Subscriptions}& & 2,000\\ \text{received in Advance}& & 800& \text{Accrued interest}& & 1,000\\ \text{Life Membership Fees}& 15,000& & \text{Investments}& & 40,000\\ \text{Add : Life Membership}& & & \text{Government Bonds}& & 5,000\\ \text{fees of current year}& \underset{–}{9,000}& 24,000& \text{Land and Building}& 40,000& \\ \text{Capital Fund}& 1,09,600& & \text{Add : Additions}& \underset{–}{30,000}& 70,000\\ \text{Add : Surplus}& \underset{–}{22,230}& 1,31,830& \text{Furniture}& 10,500& \\ & & & \text{Less : Sold}& \underset{–}{4,000}& 6,500\\ & & \underset{–}{\overline{1,56,630}}& & & \underset{–}{\overline{1,56,630}}\end{array}$