Question

From the following Receipts and Payments Account of a Cricket club and the additional information, prepare an Income and Expenditure Account for the year ended on 31st March, 2014 and a Balance Sheet as at that date :

$\begin{array}{ccccc}\text{Receipts}& \text{Rs}& \text{Payments}& & \text{Rs}\\ \text{Balance b/d :}& & \text{Crockery purchased}& & 2,650\\ \text{Cash}& 3,520& \text{Maintenance}& & 6,820\\ \text{Bank}& 27,380& \text{Match Expenses}& & 13,240\\ \text{Fixed Deposit at}6\%\text{p.a.}& 30,000& \text{Salaries}& & 11,000\\ \text{Membership Subscription}& & \text{Conveyance}& & 820\\ \text{(including Rs 6,000 for the year}& & \text{Upkeep of lawn}& & 4,240\\ \text{year ending 31st March, 2013)}& 40,000& \text{Postage Stamps}& & 1,050\\ \text{Entrance Fees}& 2,750& \text{Purchase of Cricket Materials}& & 9,720\\ \text{Donation}& 5,010& \text{Sundry Expenses}& & 2,000\\ \text{Interest on Fixed Deposit}& 900& \text{Investments}& & 5,700\\ \text{Tournament Fund}& 20,000& \text{Tournament Expenses}& & 18,800\\ \text{Sales of Crockery}& & \text{Balance c/d :}& & \\ \text{(Book value Rs 1,200)}& 2,000& \text{Cash}& 2,200& \\ & & \text{Bank}& 23,320& \\ & & \text{Fixed Deposit at}6\%\text{p.a.}& \underset{–}{30,000}& 55,520\\ & \underset{–}{\overline{1,31,560}}& & & \underset{–}{\overline{1,31,560}}\end{array}$

Informations :- (a) Monthly Salary is Rs 1,000;

(b) The value of unused Postage Stamps is as follows :

31st March, 2013, Rs 750;

31st March, 2014, Rs 900.

(c) Stock of Cricket Materials is as follows :

31st March, 2013, Rs 3,210;

31st March, 2014, Rs 2,800.

(d) Arrear of membership subscriptions :

On 31st March, 2013, Rs 6,600;

On 31st March, 2014, (for 2013-14) Rs 8,000.

(e) Donation and Entrance Fees are not to be capitalised

Answer 1

Balance Sheet
as at 31st March, 2013
$\begin{array}{cccc}\text{Liabilities}& \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Capital Fund (Balancing figure)}& 72,660& \text{Cash in Hand}& 3,520\\ & & \text{Cash at Bank}& 27,380\\ & & \text{Fixed Deposit at}6\%\text{p.a.}& 30,000\\ & & \text{Unused Postage Stamps}& 750\\ & & \text{Stock of Cricket Materials}& 3,210\\ & & \text{Subscriptions Outstanding}& 6,600\\ & & \text{Crockery}& 1,200\\ & \underset{–}{\overline{72,600}}& & \underset{–}{\overline{72,600}}\end{array}$

Income and Expenditure Account
for the year ending 31st March, 2014 Dr. Cr.
$\begin{array}{cccccc}\text{Expenditure}& & \text{Rs}& \text{Income}& & \text{Rs}\\ \text{Maintenance}& & 6,820& & & \\ \text{Match Expenses}& & 13,240& \text{Subscriptions}& 40,000& \\ \text{Salaries}& 11,000& & \text{Less : Outstanding Subscrip-}& & \\ \text{Add : Outstanding}& \underset{–}{1,000}& 12,000& \text{tion received for 2013}& \underset{–}{6,000}& \\ \text{Conveyance}& & 820& & 34,000& \\ \text{Upkeep (Maintenance) of lawn}& & 4,240& \text{Add : Outstanding for 2014}& \underset{–}{8,000}& 42,000\\ \text{Postage consumed :}& & & \text{Entrance Fees}& & 2,750\\ \text{Purchases}& 1,050& & \text{Donation}& & 5,010\\ \text{Add : Opening Stock}& \underset{–}{750}& & \text{Interest on Fixed Deposit}& 900& \\ & 1,800& & \text{Add : Accrued Interest}& \underset{–}{900}& 1,800\\ \text{Less : Closing Stock}& \underset{–}{900}& 900& \text{Profit on sale of Crockery}& & 800\\ \text{Cricket Materials consumed :}& & & & & \\ \text{Purchases}& 9,720& & & & \\ \text{Add : Opening Stock}& \underset{–}{3,210}& & & & \\ & 12,930& & & & \\ \text{Less : Closing Stock}& \underset{–}{2,800}& 10,130& & & \\ \text{Sundry Expenses}& & 2,000& & & \\ \text{Excess of Income over}& & & & & \\ \text{Expenditure}& & 2,210& & & \\ & & \underset{–}{\overline{52,360}}& & & \underset{–}{\overline{52,360}}\end{array}$

Balance Sheet
as at 31st March, 2014
$\begin{array}{ccccc}\text{Liabilities}& & \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Outstanding Salaries}& & 1,000& \text{Cash in Hand}& 2,200\\ \text{Tournament Fund}& 20,000& & \text{Cash at Bank}& 23,320\\ \text{Less : Tournament}& & & \text{Fixed Deposit at}6\%\text{p.a.}& 30,000\\ \text{Expenses}& \underset{–}{18,800}& 1,200& \text{Unused postage stamps}& 900\\ \text{Capital Fund (1-4-2013)}& 72,660& & \text{Stock of Cricket Materials}& 2,800\\ \text{Add : Excess of Income}& & & \text{Subscriptions outstanding :}& \\ \text{over Expenditure}& \underset{–}{2,210}& 74,870& \text{(Rs 600 + Rs 8,000)}& 8,600\\ & & & \text{Crockery}& 2,650\\ & & & \text{Investments}& 5,700\\ & & & \text{Accrued Interest}& 900\\ & & \underset{–}{\overline{77,070}}& & \underset{–}{\overline{77,070}}\end{array}$

Note :- Outstanding subscription on 31st March, 2013 was Rs 6,600. Out of this, Rs 6,000 has been received during 2013-14, as such Rs 600 is still in arrear which will be shown on the assets side of the current year's Balance Sheet.