Question

From the following Receipts and Payments Account of a Club and from the additional information supplied, prepare Income and Expenditure

Additional Information:

(a) The club has, 50 members each paying annual subscription of 25. Subscriptions outstanding on 31st Dec. 2011 were Rs 300.

(b) On 31st December 2012 salaries outstanding amounted to f 100. Salaries paid included Rs 100 for the year 2011.

(c) On 1-1-2012,the club owned Land and Building valued at Rs 10,000, Furniture Rs 600 and Books Rs 500.

$\begin{array}{cccc}\text{Receipts}& \text{Amount (Rs)}& \text{Payments}& \text{Amount (Rs)}\\ \text{To Balance b/d}& 250& \text{By Salaries}& 1,200\\ \text{To Subscriptions :}& & \text{By General Charges}& 300\\ \text{2011}& 250& \text{By Electric Charges}& 200\\ \text{2012}& \text{1,000}& \text{By Books}& \text{100}\\ \text{2013}& 200& \text{By Newspapers}& 400\\ \text{To Sale of old Furniture (Costing}& & \text{By Postage}& \text{50}\\ \text{Rs 100)}& 60& \text{By Furniture}& 250\\ \text{To Rent received for the use of Hall}& 740& \text{Balance c/d}& 500\\ \text{To Entertainment}& 400& & \\ \text{To Sale of Newspaper}& 100& & \\ & \underset{–}{\overline{\underset{–}{3,000}}}& & \underset{–}{\overline{\underset{–}{3,000}}}\end{array}$

Answer 1

Income and Expenditure A/c

For the year ended 31 Dec., 2012

$\begin{array}{cccccc}\text{Expenditure}& & \text{Amount (Rs)}& \text{Incomes}& & \text{Amount (Rs)}\\ \text{To Salaries}& \text{1,200}& & \text{By Subscription}& \text{1,000}& \\ \text{Add : Out standing salries}& \underset{–}{100}& & \text{Add : O/s (2012)}& \underset{–}{250}& \text{1,250}\\ & \text{1,300}& & \text{By Rent of hall}& & \text{740}\\ \text{Less : Salaries paid for 2011}& \underset{–}{100}& 1,200& \text{By Profit on Entertainment}& & 400\\ \text{To General Expenses}& & 300& \text{By Sale of News Paper}& & \text{100}\\ \text{To Electric Charges}& & 200& & & \\ \text{To News Paper}& & 400& & & \\ \text{To Postage}& & 50& & & \\ \text{To less on sale of furniture}& & 40& & & \\ \text{To Surplus (Excess of Income}& & & & & \\ \text{expenditure)}& & 300& & & \\ & & \underset{–}{\overline{\underset{–}{2,490}}}& & & \underset{–}{\overline{\underset{–}{2,490}}}\end{array}$

Balance Sheet

As on 31.12.2012

$\begin{array}{cccccc}\text{Liabilities}& & \text{Amount (Rs)}& \text{Assets}& & \text{Amount (Rs)}\\ \text{Capital fund}& \text{11,550}& & \text{Cash in hand}& & 500\\ \text{Add : Surplus}& \underset{–}{300}& 11,850& \text{Subscription O/s}& 250& \\ \text{Subscription recd in Advance}& & 200& \text{Add : O/s for 2011}& \underset{–}{50}& \text{300}\\ \text{Salries Outstanding}& & 100& \text{Land \& building}& & 10,000\\ & & & \text{Furniture}& 600& \\ & & & \text{Less : Sold}& \underset{–}{100}& \\ & & & & 500& \\ & & & \text{Add : Purchased}& \underset{–}{250}& 750\\ & & & \text{Books}& 500& \\ & & & \text{Add : Purchased}& \underset{–}{100}& 600\\ & & \underset{–}{\overline{\underset{–}{12,150}}}& & & \underset{–}{\overline{\underset{–}{12,150}}}\end{array}$

Working Notes :

$\begin{array}{cccc}\text{Liabilities}& \text{Amount (Rs)}& \text{Assets}& \text{Amount (Rs)}\\ \text{Salaries Outstanding}& 100& \text{Cash Balance}& 250\\ \text{Capital fund}& 11,550& \text{Outstanding subscription}& 300\\ \text{(Balancing figure)}& & \text{Furniture}& 600\\ & & \text{Books}& \text{500}\\ & & \text{Land and Building}& \text{10,000}\\ & \underset{–}{\overline{\underset{–}{11,650}}}& & \underset{–}{\overline{\underset{–}{11,650}}}\end{array}$