Question

Following is the Receipt and Payment Account of Indian Sports Club, prepared Income and Expenditure Account, Balance Sheet as on December 31, 2006:

Receipt and Payment Account for the year ending December 31, 2006
Receipts	Amount Rs	Payments	Amount Rs
Balance b/d	7,890	Salary	11,000
Subscriptions	52,000	Electric charges	5,500
Life member ship fee	2,200	Billiard Table	17,500
Entrance fee	3,200	Office expenses	4,100
Tournament fund	26,000	Printing and Stationery	2,300
Locker Rent	1,250	Tournament expenses	18,500
Sale of old sports goods (Costing Rs 2,200)	2,500	Repair of ground	2,000
Sale of Old Newspaper	750	Furniture purchased	7,700
Legacy	37,500	Sports equipments	12,000
		Cash in Hand	12,690
		Cash at Bank	10,000
		Fixed Deposit (on 1.10.06 for 10% p.a)	30,000
	1,33,290		1,33,290

Other Information:

Subscription outstanding was on December 31, 2005 Rs 1,200 and Rs 3,200 on December 31, 2006. Locker rent outstanding on December 31, 2006 Rs 250. Salary outstanding on December 31, 2006 Rs 1,000.

On January 1, 2006, club has Building Rs 36,000, furniture Rs 12,000, Sports equipments Rs 17,500. Depreciation charged on these items @ 10% (including Purchase).

Answer 1

Indian Sports Club Income and Expenditure Account as on Dec. 31, 2006
Dr.					Cr.
Expenditure		Amount Rs	Income		Amount Rs
Salary	11,000		Subscriptions	52,000
Add: Outstanding for 2006	1,000	12,000	Add: Outstanding for 2006	3,200
Electric Charges		5,500		55,200
Office Expenses		4,100	Less: Outstanding for 2005	(1,200)	54,000
Printing and Stationery		2,300
Repair of Ground		2,000	Locker Rent	1,250
Depreciation on:			Add: Outstanding for 2006	250	1,500
Furniture	1,970
Building	3,600		Entrance Fees		3,200
Sports Equipments	2,730	8,300	Profit on Sale of Sports
Surplus		26,300	Equipments (Rs 2,500 – Rs 2,200)		300
			Sale of Old Newspapers		750
			Accrued Interest		750
		60,500			60,500

Balance Sheet as on January 01, 2006
Liabilities		Amount Rs	Assets	Amount Rs
Capital Fund (Balancing Figure)		74,590	Subscription Outstanding	1,200
			Building	36,000
			Furniture	12,000
			Sports Equipments	17,500
			Cash and Bank	7,890
		74,590		74,590

Balance Sheet as on Dec. 31, 2006
Liabilities		Amount Rs	Assets		Amount Rs
Salary Outstanding		1,000	Subscripting Outstanding		3,200
Tournament Fund	26,000		Locker Rent Outstanding		250
Less: Tournament Expenses	18,500	7,500	Building	36,000
			Less: 10% Depreciation	(3,600)	32,400
Capital fund	74,590
Add: Life Membership Fee	2,200		Furniture	12,000
Add: Legacy	37,500		Add: Purchases	7,700
Add: Surplus	26,300	1,40,590		19,700
			Less: 10% Depreciation	(1,970)	17,730
			Sports Equipments	17,500
			Add: Purchases	12,000
				29,500
			Less: Sales	(2,200)
				27,300
			Less: 10% Depreciation	(2,730)	24,570
			Billiard Table		17,500
			Cash in hand		12,690
			Cash at Bank		10,000
			Fixed Deposit	30,000
			Add: Accrued Interest	750	30,750
		1,49,090			1,49,090