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%.
|
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%.
In the books of New City Club
Income and Expenditure Account
for the year ended March 31, 2019
Dr.
Cr.
Expenditure
Amount
(₹)
Income
Amount
(₹)
Salaries
28,000
Subscription (50 members × Rs 500 each)
25,000
Add: Outstanding for 2018-19
2,000
Rent Received from the use of hall
14,000
Less: Outstanding for 2017-18
6,000
24,000
Profit from Entertainment
8,000
General Expenses
6,000
Sale of Old Newspapers
2,000
Electricity Charges
4,000
Newspapers
8,000
Depreciation on Furniture (2,000 × 10%)
2,000
Surplus (Balancing Figure)
5,000
49,000
49,000
Balance Sheet
as on April 01, 2018
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Salaries Outstanding
6,000
Subscriptions Outstanding
6,000
Capital Fund
2,47,000
Building
2,00,000
(Balancing Figure)
Furniture
20,000
Books
20,000
Cash and Bank
7,000
2,53,000
2,53,000
Balance Sheet
as on March 31, 2019
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Advance Subscription
4,000
Subscription Outstanding
Salaries Outstanding
2,000
For 2018-19 (25,000 - 20,000)
5,000
Capital Fund
2,47,000
For 2017-18 (6,000 - 5,000)
1,000
6,000
Add: Surplus
5,000
2,52,000
Building
2,00,000
Furniture
20,000
Less: 10% Depreciation
2,000
18000
Books
20,000
Add: Purchases
10,000
30,000
Cash and Bank
4,000
2,58,000
2,58,000
|
In the books of New City Club
Income and Expenditure Account for the year ended March 31, 2019 |
||||||
|
Dr. |
|
Cr. |
||||
|
Expenditure |
Amount (₹) |
Income |
Amount (₹) |
|||
|
Salaries |
28,000 |
|
Subscription (50 members × Rs 500 each) |
25,000 |
||
|
Add: Outstanding for 2018-19 |
2,000 |
|
Rent Received from the use of hall |
14,000 |
||
|
Less: Outstanding for 2017-18 |
6,000 |
24,000 |
Profit from Entertainment |
8,000 |
||
|
General Expenses |
6,000 |
Sale of Old Newspapers |
2,000 |
|||
|
Electricity Charges |
4,000 |
|
|
|||
|
Newspapers |
8,000 |
|
|
|||
|
Depreciation on Furniture (2,000 × 10%) |
2,000 |
|
|
|||
|
Surplus (Balancing Figure) |
5,000 |
|
|
|||
|
|
49,000 |
|
49,000 |
|||
|
|
|
|
|
|||
|
Balance Sheet as on April 01, 2018 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Salaries Outstanding |
6,000 |
Subscriptions Outstanding |
6,000 |
|
Capital Fund |
2,47,000 |
Building |
2,00,000 |
|
(Balancing Figure) |
|
Furniture |
20,000 |
|
|
|
Books |
20,000 |
|
|
|
Cash and Bank |
7,000 |
|
|
2,53,000 |
|
2,53,000 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Advance Subscription |
4,000 |
Subscription Outstanding |
|
||
|
Salaries Outstanding |
2,000 |
For 2018-19 (25,000 - 20,000) |
5,000 |
|
|
|
Capital Fund |
2,47,000 |
|
For 2017-18 (6,000 - 5,000) |
1,000 |
6,000 |
|
Add: Surplus |
5,000 |
2,52,000 |
Building |
2,00,000 |
|
|
|
|
Furniture |
20,000 |
|
|
|
|
|
Less: 10% Depreciation |
2,000 |
18000 |
|
|
|
|
Books |
20,000 |
|
|
|
|
|
Add: Purchases |
10,000 |
30,000 |
|
|
|
|
Cash and Bank |
4,000 |
||
|
|
2,58,000 |
|
2,58,000 |
||
|
|
|
|
|
||
