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Question

​How are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March , 2018?

 

                 RECEIPTS AND PAYMENTS ACCOUNT ( AN                                    EXTRACT ) for the year ended 31ST March, 2018

 

Dr.

 

             Cr.
Receipts

 

Payments 

To Sale of Sports Materials

26,000 ​By Creditors for Sports Materials 61,000
(Book value ₹ 20,000)   By Cash purchase of Sports Materials 10,000

 
     

 

 

 

 
 

 

 

Additional information :
   As at 1st April, 2017 (₹)  As at 31st March, 2018 (₹)
Sports Materials  20,000  25,000
Creditors for Sports Materials    7,000  15,000


Solution

Income and Expenditure Account

for the year ended March 31, 2016

Dr.

 

Cr.

Expenditure 

Amount

(Rs)

Income

Amount

(Rs)

Payment for Sports Material

71,000

 

Profit on Sale of Sports Material (26,000 – 20,000)

6,000

Add: Opening Stock

20,000

 

 

 

Less: Closing Stock

(25,000)

 

 

 

Less: Creditors in the beginning

(7,000)

 

 

 

Add: Creditors at the end

15,000

 

 

 

Less: Book Value of Material Sold

(20,000)

54,000

 

 

 

 

 

 

             

 

Balance Sheet

as on March 31, 2015

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Creditors for Sport Materials

7,000

Stock of Sport Materials

20,000

 

 

 

 

 

 

Balance Sheet

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Creditors for Sport Materials

15,000

Stock of Sport Materials

25,000

 

 

 

 

 


Accountancy
TS Grewal Vol. II (2018)
Standard XII

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