From the following Receipts and Payments Account of Imran Khan club and from the given additional information , prepare Income and Expenditure Account for the year ending 31st December, 2015 and the Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018

Dr.

Cr.

Receipts

₹

Payments

₹

To Balance b/d
To Subscriptions
To Interest on Investment @ 8% p.a. for full year

1,90,000
6,60,000
40,000

By Salaries
By Sports Material
By Balance c/d

3,30,000
4,00,000
1,60,000

8,90,000

8,90,000

Additional Information:
(i) The club had received ₹ 20,000 for subscription in 2014 for 2015.
(ii) Salaries had been paid onl;y for 11 months
(iii) Stock of sports materials on 31st December , 2014 was ₹ 3,00,000 and on 31st December, 2015 ₹ 6,50,000

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Solution

Income and Expenditure Account

for the year ending December 31,2015

Dr.

Cr.

Expenditure

Amount

(Rs)

Income

Amount (Rs)

Salary

3,30,000

Subscription

6,60,000

Add: Outstanding Salaries (WN3)

30,000

3,60,000

Add: Advance in the beginning

20,000

6,80,000

Sports Materials Consumed

50,000

Interest on Investments

40,000

Surplus (Excess of Income over Expenditure)

3,10,000

7,20,000

7,20,000

Balance Sheet

as on December 31,2015

Liabilities

Amount

(Rs)

Assets

Amount (Rs)

Outstanding Salaries

30,000

Investments (WN4)

5,00,000

Capital Fund

9,70,000

Stock of Sports Material

6,50,000

Add: Surplus

3,10,000

12,80,000

Cash

1,60,000

13,10,000

13,10,0000

Working Notes:

WN1: Calculation of amount of Sports Material Consumed:

Particulars

Amount

(Rs)

Sports Material Purchased

4,00,000

Add: Opening Stock of Sports Material

3,00,000

Less: Closing Stock of Sports Material

6,50,000

Sports Material Consumed

50,000

WN2: Calculation of Capital Fund

Balance Sheet

as on January 01,2015

Liabilities

Amount

(Rs)

Assets

Amount
(Rs)

Subscription Received in Advance

20,0000

Investments

5,00,000

Capital Fund (Balancing Figure)

9,70,000

Stock of Sports Material

3,00,000

Cash

1,90,000

9,90,000

9,90,0000

WN3: Calculation of Outstanding Salaries

Outstanding Salaries = $3, 30, 000 \times \frac{1}{11} = 30, 000$

WN4: Calculation of Investments

Investments = $40, 000 \times \frac{100}{8} = 5, 00, 000$

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Similar questions

From the following Receipts and Payments Account of Sonic Club and from the given additional information, prepare Income and Expenditure Account for the year ending 31st March, 2015 and the Balance Sheet as at that date :

Receipts and Payments Account
for the year ending 31st March, 2015
Dr. Cr.
$\begin{matrix} Receipts & Rs & Payments & Rs Balance b/d & 1, 90, 000 & Salaries & 3, 30, 000 Subscriptions & 6, 60, 000 & Sports Materials & 4, 00, 000 Interest on Investments & Balance c/d & 1, 60, 000 @ 8 % p.a. for full year & 40, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 90, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 90, 000 - -------- - \end{matrix}$

Additional Information :

(i) The club had received Rs 20,000 for subscription in 2013-14 for 2014-15.

(ii) Salaries had been paid only for 11 months.

(iii) Stock of Sports Materials on 31st March, 2014 was Rs 3,00,000 and on 31st March, 2015 was Rs 6,50,000.

Q. From the following Receipts and Payments Account of Kapil Dev Club and from the given additional information, prepare Income and Expenditure Account for the year ending 31st December, 2019 and the Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹

To Balance b/d	1,90,000	By Salaries	3,30,000
To Subscriptions	6,60,000	By Sports Material	4,00,000
To Interest on Investment	40,000	By Balance c/d	1,60,000
@ 8% p.a. for full year
	8,90,000		8,90,000

Additional Information:
(i) The club had received ₹ 20,000 for subscription in 2017-18 for 2018-19.
(ii) Salaries had been paid only for 11 months.
(iii) Stock of sports materials on 31st March, 2018 was ₹ 3,00,000 and on 31st March, 2019 ₹ 6,50,000.

From the following Receipts and Payments Account of Sonic Club and from the given additional information, prepare the expenditure on account of salaries for the year ending 31st March, 2015 and show the salaries item in the Income and Expenditure Account and the Balance Sheet as at 31st March, 2014 and 31st March, 2015.

An Extract of Receipts and Payments Account for the year ending 31st March, 2015
Dr. Cr.
$\begin{matrix} Expenditure & Rs & Income & Rs By Salaries : 2013-14 & 20, 000 2014-15 & 2, 80, 000 2015-16 & 18, 000 \end{matrix}$

Additional Information Rs

(i) Salaries outstanding on 31st March, 2014 25,000

(ii) Salaries outstanding on 31st March, 2015 45,000

(iii) Salaries paid in advance on 31st March, 2014
10,000

Q. Following is the Receipts and Payments Account of You Bee Forty Club for the year ended 31st March, 2018:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018
Dr.				Cr.
Receipts	₹	Payments	₹
To Balance b/d (cash) To Subscriptions 2016-2017 2017-2018 To Donations To Entrance Fees	1,50,000 60,000 3,50,000 50,000 80,000	By Salaries and Wages By Office Expenses By Sports Equipments By Telephone Charges By Electricity Charges By Travelling Expenses By Balance c/d (Cash)	1,60,000 35,000 3,40,000 24,000 32,000 65,000 34,000


	6,90,000		6,90,000

Additional information :
(a) Outstanding Subscriptions for the year ended 31st March, 2018

—

₹ 55,000.
(b) Outstanding Salaries and Wages

—

₹ 40,000.
(c) Depreciate Sports Equipments by 25%.
Prepare Income and Expenditure Account of the club from the above particulars.

Q. From the following Receipts and Payments Account of City Club and from the information supplied , prepare Income and Expenditure Account for the year ended 31st March , 2018 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March ,2018
Dr.				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To Balance b/d		7,000	By Salaries	28,000
To Subscriptions:			By General Expenses	6,000
2016-17	5,000		By Electricity Charges	4,000
2017-18	20,000		By Books	10,000
2018-19	4,000	29,000	By Newspapers	8,000
To Rent		14,000	By Balance c/d	4,000
(Received from the Use of Hall)
To Profit from Entertainment		8,000
To Sale of Old Newspapers		2,000

		60,000		60,000

(a) The club has 50 members each paying an annual subscription of ₹ 500. Subscriptions Outstanding on 31st March,2017 were ₹ 6,000.
(b) On 31st March, 2018, Salries Outstanding amounted to ₹ 2,000 . Salaries paid in the year ended 31st March, 2018 included ₹ 6,000 for the year ended 31st March , 2017.
(c) On 1st April , 2017, the club owned Building valued at ₹ 2,00,000; Furniture ₹ 20,000 and Books ₹ 20,000.
(d) Provide depreciation on Furniture at 10%.

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Income and Expenditure Account for the year ending December 31,2015
Dr.					Cr.
Expenditure		Amount (Rs)	Income		Amount (Rs)
Salary	3,30,000		Subscription	6,60,000
Add: Outstanding Salaries (WN3)	30,000	3,60,000	Add: Advance in the beginning	20,000	6,80,000
Sports Materials Consumed		50,000	Interest on Investments		40,000
Surplus (Excess of Income over Expenditure)		3,10,000
		7,20,000			7,20,000

Balance Sheet as on December 31,2015
Liabilities		Amount (Rs)	Assets	Amount (Rs)

Outstanding Salaries		30,000	Investments (WN4)	5,00,000
Capital Fund	9,70,000		Stock of Sports Material	6,50,000
Add: Surplus	3,10,000	12,80,000	Cash	1,60,000

		13,10,000		13,10,0000

Particulars	Amount (Rs)
Sports Material Purchased	4,00,000
Add: Opening Stock of Sports Material	3,00,000
Less: Closing Stock of Sports Material	6,50,000

Sports Material Consumed	50,000

Balance Sheet as on January 01,2015
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Subscription Received in Advance	20,0000	Investments	5,00,000
Capital Fund (Balancing Figure)	9,70,000	Stock of Sports Material	3,00,000
		Cash	1,90,000

	9,90,000		9,90,0000