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.

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Solution

Books of Kapil Dev Club

Income and Expenditure Account

for the year ending 31st March,2019

Dr.

Cr.

Expenditure

Amount

(₹)

Income

Amount (₹)

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 31st March,2019

Liabilities

Amount

(₹)

Assets

Amount
(₹)

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

(₹)

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 April 01,2018

Liabilities

Amount

(₹)

Assets

Amount
(₹)

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

Suggest Corrections

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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 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

Q. From the following Receipts and Payments Account of Social Club and the information supplied, prepare Income and Expenditure Account for the year ended 31st March, 2019 and 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		7,000	By Salaries	28,000
To Subscriptions:			By General Expenses	6,000
2017-18	5,000		By Electricity Charges	4,000
2018-19	20,000		By Books	10,000
2019-20	4,000	29,000	By Newspapers	8,000
To Hire of Ground		14,000	By Balance c/d	4,000
To Surplus from Entertainment Events		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,2018 were ₹ 6,000.
(b) On 31st March, 2019, Salaries Outstanding amounted to ₹ 2,000. Salaries paid in the year ended 31st March, 2019 included ₹ 6,000 for the year ended 31st March, 2018.
(c) On 1st April, 2018, the club owned Building valued at ₹ 2,00,000; Furniture ₹ 20,000 and Books ₹ 20,000.
(d) Provide depreciation on Furniture at 10%.

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%.

Q. Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.				Cr.
Receipts	₹	Payments	₹
To Balance b/d (Cash)	18,000	By Building	4,00,000
To Donations for Building	4,50,000	By Project Expenses	90,000
To Donations	50,000	(Young Talent Search and Development)
To Government Grant	1,00,000	By Match Expenses	90,000
(Young Talent Search and Development)		By Furniture	1,21,000
To Life Membership Fees	40,000	By 10% Investments	1,60,000
To Match Fund	80,000	(Purchased on 1st July, 2018)
To Subscriptions	52,000	By Salaries	70,000
To Locker Rent	4,000	By Insurance	3,500
To Interest on Investments	10,000	By Sundry Expenses	4,700
To Sale of Furniture	1,00,000	By Closing c/d (Cash)	4,800
(Book value ₹ 80,000)		By Bank (Young Talent	10,000
To Entrance Fees	50,000	Search and Development


	9,54,000		9,54,000

Additional Information:
(i) During the year ended 31st March, 2019, the club had 550 members and each paying an annual subscription of ₹ 100.
(ii) Salaries Outstanding as at 1st April, 2018 were ₹ 10,000 and as at 31st March, 2019 were ₹ 5,000.
Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2019.

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Books of Kapil Dev Club
Income and Expenditure Account for the year ending 31st March,2019
Dr.					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
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 31st March,2019
Liabilities		Amount (₹)	Assets	Amount (₹)

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 (₹)
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 April 01,2018
Liabilities	Amount (₹)	Assets	Amount (₹)
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