Question

From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account and Balance Sheet for the year ending December 31, 2006.

Receipt and Payment Account for the year ending December 31, 2006
Receipts	Amount Rs	Payments	Amount Rs
Cash in hand as on 1.1.06	6,800	Salaries	24,000
Subscription	60,200	Traveling Expenses	6,000
Donation	3,000	Stationery	2,300
Sale of furniture (Book value Rs 6000)	4,000	Rent	16,000
Entrance fee	800	Repair	700
Life membership fee	7,000	Books purchased	6,000
Interest on investment (@ 5% for full year)	5,000	Building purchased	30,000
		Cash in Hand as 31.12.2006	1,800
	86,800		86,800

Additional Information:

		As on 1.01.2006	As on 31.12.2006
(i)	Subscription received in advance	1,000	3,200
(ii)	Outstanding subscription	2,000	3,700
(iii)	Stock of stationery	1,200	800
(iv)	Books	13,500	16,500
(v)	Furniture	16,000	8,000
(vi)	Outstanding rent	1,000	2,000

Answer 1

Books of Jan Kalyan Club Income and Expenditure Account as on 31 Dec. 2006
Dr.					Cr.
Expenditure		Amount Rs	Income		Amount Rs
Loss on Sale of Furniture (Rs 6,000 – Rs 4,000)		2,000	Subscription	60,200
Salaries		24,000	Less: Outstanding for 2005	(2,000)
Traveling Expenses		6,000		58,200
Stationery	2,300		Add: Outstanding for 2006	3,700
Add: Opening Stock	1,200			61,900
	3,500		Add: Advance in 2005	1,000
Less: Closing Stock	(800)	2,700		62,900
			Less: Advance in 2006	(3,200)	59,700
Repairs		700
Rent	16,000		Donation		3,000
Less: Outstanding for 2005	(1,000)		Entrance Fees		800
	15,000		Interest on Investments		5,000
Add: Outstanding for 2006	2,000	17,000
Depreciation on Books		3,000
Depreciation on Furniture		2,000
Surplus		11,100
		68,500			68,500

Balance Sheet as on January 01, 2006
Liabilities	Amount Rs	Assets	Amount Rs
Advance Subscription	1,000	Cash in Hand	6,800
Outstanding Rent	1,000	Investment {5,000 × (100/5)}	1,00,000
Capital Fund (Balancing figure)	1,37,500	Subscription Outstanding	2,000
		Stock of Stationery	1,200
		Books	13,500
		Furniture	16,000
	1,39,500		1,39,500

Balance Sheet as on Dec. 31, 2006
Liabilities		Amount Rs	Assets		Amount Rs
Advance Subscription		3,200	Subscription Outstanding		3,700
Outstanding Rent		2,000	Stock of Stationery		800
Capital Fund	1,37,500		Investments		1,00,000
Add: Life Membership Fees	7,000
Add: Surplus	11,100	1,55,600	Books	13,500
			Add: Purchases	6,000
				19,500
			Less: Depreciation	(3,000)	16,500
			Building		30,000
			Cash in Hand		1,800
			Furniture	16,000
			Less: Sales	6,000
				10,000
			Less: Depreciation	(2,000)	8,000
		1,60,800			1,60,800