Question

From the following information, prepare Receipts and Payments Account of Long-town Sports Club for the year ending 31st March, 2019:

Particulars		(₹)	Particulars	(₹)
Opening Balance:			Charity Given	10,000
Cash in Hand		50,000	Match Expenses	30,000
Cash at bank		60,000	Salaries	63,600
Subscription Received:			Honorarium	4,000
2017-18		4,000	12% Investment Purchased	60,000
2018-19		1,40,000	Entrance Fees	4,000
2019-20		8,000	Interest on 12% Investments	6,000
Furniture Purchased		70,000	Closing Balance:
General Donations		20,000	Cash in Hand	24,000
Donations for Tournament		40,000	Cash at Bank	?

Answer 1

In the books of Longtown Sports Club
Dr.	Receipts and Payments A/c for the year ended 31st March, 2019				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To Opening Balance:			By Charity Given	10,000
Cash in Hand		50,000	By Match Expenses	30,000
Cash at Bank		60,000	By Salaries	63,600
To Subscriptions Received:			By Honorarium	4,000
2017-18		4,000	By 12% Investment Purchased	60,000
2018-19		1,40,000	By Furniture Purchased	70,000
2019-20		8,000	By Closing Balance
To Entrance Fees		4,000	Cash in Hand	24,000
To General Donations		20,000	Cash at Bank (WN1) (Bal. Fig.)	70,400
To Donations for Tournament		40,000
To Interest on 12% Investments		6,000
		3,32,000		3,32,000

Working Notes:

Calculation of closing balance of Cash:

Total Receipts = ₹ 3,32,000
Total Payments = ₹ 2,37,600
Cash in Hand = ₹ 24,000

Cash at Bank	=	Total Receipts – (Total Payments + Closing Balance of Cash)
	=	₹ [3,32,000 – 2,61,600] = ₹ 70,400