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Question

From the following Receipt and Payment Account prepare final accounts of a Unity Club for the year ended March 31, 2007.

Receipt and Payment Accounts for the year ending March 31, 2007

Receipts

Amount Rs

Payments

Amount Rs

Balance b/d

15,000

Furniture

18,000

Sale of Old furniture (costing Rs 6,000)

4,000

Library books

10,000

Subscriptions:

Salaries

72,000

2005−06

18,000

General expenses

18,000

2006−07

60,000

Electric charges

12,000

2007−08

2,000

90,000

Newspapers

33,800

Sale of old newspapers

10,800

Postage

3,000

Profit from entertainment

44,000

Stationery

40,000

Rent

84,000

Audit fee

8,000

Balance c/d

33,000

2,47,800

2,47,800

Balance Sheet as on March 31, 2006

Liabilities

Amount Rs

Assets

Amount

Rs

Outstanding Salary

6,000

Cash

15,000

Capital Fund

6,94,000

Outstanding subscription

18,000

Library Books

30,000

Furniture

37,000

Land and Building

6,00,000

7,00,000

7,00,000

Additional Information:

1.

The Club had 500 members each paying an annual subscription of Rs 150.

2.

On 31.3.2007 salaries outstanding amounted to Rs 1,200 and salaries paid included Rs 6,000 for the year 2005−06.

3.

Provide 5% depreciation on Land and Building.

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Solution

Books of Unity Club

Income and Expenditure Account as on March 31, 2007

Dr.

Cr.

Expenditure

Amount

Rs

Income

Amount

Rs

Loss on Sale of Old Furniture (4,000 − 6,000)

2,000

Subscription

500 members at Rs 150 each

75,000

Salaries

72,000

Sale of Old Newspapers

10,800

Add: Outstanding for 2006−07

1,200

Profit from Entertainment

44,000

73,200

Rent

84,000

Less: Outstanding for 2005−06

(6,000)

67,200

General Expenses

18,000

Deficit (Balancing figure)

200

Electric Charges

12,000

Newspapers

33,800

Postage

3,000

Stationery

40,000

Audit Fees

8,000

Depreciation on Land and Building

30,000

2,14,000

2,14,000

Balance Sheet as on 31 March 2007

Liabilities

Amount

Rs

Assets

Amount

Rs

Advance Subscription (for 2007−08)

12,000

Subscription Outstanding

15,000

Salaries Outstanding

1,200

Furniture

37,000

Capital Fund

6,94,000

Add: Purchases

18,000

Less: Deficit

(200)

6,93,800

55,000

Less: Sales

(6,000)

49,000

Library Books

30,000

Add: Purchases

10,000

40,000

Land and Building

6,00,000

Less: 5% Depreciation

(30,000)

5,70,000

Cash and Bank

33,000

7,07,000

7,07,000

Note: As per the solution, Deficit is Rs 200 and the total of the Balance Sheet as on March 31, 2007 is Rs 7,07,000. However, the Surplus given in the book is Rs 14,000 and the total of the Balance Sheet as on March 31, 2007 is Rs7,27,000


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Q.

From the following Receipt and Payment Account prepare final accounts of a Unity Club for the year ended March 31, 2007.

Receipt and Payment Accounts for the year ending March 31, 2007

Receipts

Amount

Rs

Payments

Amount

Rs

Balance b/d

15,000

Furniture

18,000

Sale of Old furniture (costing Rs 6,000)

4,000

Library books

10,000

Subscriptions:

Salaries

72,000

2005–06

18,000

General expenses

18,000

2006–07

60,000

Electric charges

12,000

2007–08

2,000

90,000

Newspapers

33,800

Sale of old newspapers

10,800

Postage

3,000

Profit from entertainment

44,000

Stationery

40,000

Rent

84,000

Audit fee

8,000

Balance c/d

33,000

2,47,800

2,47,800

Balance Sheet as on March 31, 2006

Liabilities

Amount

Rs

Assets

Amount

Rs

Outstanding Salary

6,000

Cash

15,000

Capital Fund

6,94,000

Outstanding subscription

18,000

Library Books

30,000

Furniture

37,000

Land and Building

6,00,000

7,00,000

7,00,000

Additional Information:

1.

The Club had 500 members each paying an annual subscription of Rs 150.

2.

On 31.3.2007 salaries outstanding amounted to Rs 1,200 and salaries paid included Rs 6,000 for the year 2005–06.

3.

Provide 5% depreciation on Land and Building.

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