Question

From the following Receipts and Payments Account and additional information relating to the star Cricket Club, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT
Dr.					Cr.
Receipts		(₹)	Payments		(₹)
To Balance b/d:			By Upkeep of Fields		20,000
Cash in Hand 1st April, 2018	10,000		By Tournament Expenses		7,000
Cash at Bank as per Pass Book	20,000	30,000	By Rates and Insurance		2,000
To Members' Subscriptions		50,000	By Telephone		500
To Admission Fee		3,000	By Stationery		1,000
To Sale of Old Bats, etc.		500	By General Charges		500
To Hire of Ground		3,000	By Secretary's Honorarium		2,000
To Subscriptions for Tournament		10,000	By Bats, Balls, etc.		7,000
To Donations		75,000	By Balance c/d:
To Legacy Donations		25,000	Cash in Hand 31st March, 2019	1,00,000
			Cash at Bank as per Pass Book	56,500	1,56,500
		1,96,500			1,96,500

Assets on 1st April, 2018:		₹
	Stock of Bats and Balls	15,000
	Stationery	2,000
	Subscriptions Due	5,000

Subscriptions due on 31st March, 2019 amounted to ₹ 7,500. Write off 50% of Bats, Balls (not considering sale) and 25% of Stationery.

Answer 1

In the books of Star Cricket Club
Dr.	Income and Expenditure A/c for the year ended 31st March, 2019				Cr.
Expenditure		Amount (₹)	Income			Amount (₹)
To Upkeep of fields		20,000	By Member’s Subscriptions	50,000
To Rates and Insurance		2,000	Add: Outstanding Subscriptions (7,500 – 5,000)	2,500		52,500
To Telephone		500	By Admission fee			3,000
To General Charges		500	By Donations			75,000
To Secretary’s Honorarium		2,000	By Legacy Donations			25,000
To Bats and Balls written off (WN1)		11,000	By Hire of Ground			3,000
To Stationery written off (WN2)		750	By Sale of Old bats, etc.			500
To Surplus- Excess of Income over Expenditure		1,22,250
		1,59,000				1,59,000

Working Notes:
1)

Total Amount of Bats and Balls	=	Opening Stock + Purchases
	=	₹ (15,000 + 7,000) = ₹ 22,000
Bats and Balls to be written off	=	₹ (22,000×50/100) = ₹ 11,000

2)

Total Amount of Stationery	=	Opening Stock + Purchases
	=	₹(2,000 + 1,000)= ₹3,000
Stationery to be written off	=	₹(3,000×25/100)= ₹750

3)

Balance Sheet of Star Cricket Club
as at 1st April, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund (Balancing Figure)	52,000	Bats and Balls	15,000
		Stationery	2,000
		Subscriptions due	5,000
		Cash in Hand	10,000
		Cash at Bank	20,000
	52,000		52,000

Balance Sheet of Star Cricket Club
as at 31st March, 2019
Liabilities			Amount (₹)	Assets		Amount (₹)
Capital Fund (WN3)	52,000			Stock of Bats and Balls	15,000
Add: Surplus	1,22,250		1,74,250	Add: Purchases	7,000
				Less: Written off	11,000	11,000
Subscriptions for Tournament		10,000
Less: Tournament Expenses		7,000	3,000	Stationery	2,000
				Add: Purchases	1,000
				Less: Written off	750	2,250
				Subscriptions Outstanding		7,500
				Cash in Hand		1,00,000
				Cash at Bank		56,500
			1,77,250			1,77,250