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Question

Receipt and Payment Account of Shankar Sports club is given below, for the year ended December 31, 2006

Receipt and Payment Account for the year ending December 31, 2006

Receipts

Amount

Rs

Payments

Amount

Rs

Opening Cash in hand

2,600

Rent

18,000

Entrance fees

3,200

Wages

7,000

Donation for building

23,000

Billiard table

14,000

Locker rent

1,200

Furniture

10,000

Life membership fee

7,000

Interest

2,000

Profit from entertainment

3,000

Postage

1,000

Subscription

40,000

Salary

24,000

Cash in hand

4,000

80,000

80,000

Prepare Income and Expenditure Account and Balance Sheet with help of following Information:

Subscription outstanding on 31st December 2005 is Rs 1, 200 and Rs 2,300 on 31.12.2006, opening stock of postage stamps is Rs 300 and closing stock is Rs 200, Rent Rs 1,500 related to 2005 and Rs 1,500 is still unpaid.

On January 1, 2006 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500

On 31.12.2006. The club took a loan of Rs 20,000 (@ 10% p.a.) in 2005.

Open in App
Solution

Books of Shankar Sports Club

Income and Expenditure A/c as on 31 Dec. 2006

Dr.

Cr.

Expenditure

Amount

Rs

Income

Amount

Rs

Rent

18,000

Entrance Fees

3,200

Add: Outstanding for 2006

1,500

Locker Rent

1,200

19,500

Profit from Entertainment

3,000

Less: Outstanding for 2005

(1,500)

18,000

Subscription

40,000

Wages

7,000

Less: Outstanding for 2005

(1,200)

Depreciation on Furniture

2,500

38,800

Interest

2,000

Add: Outstanding for 2006

2,300

41,100

Postage

1,000

Deficit (Balancing Figure)

6,100

Add: Opening Stock

300

1,300

Less: Closing Stock

(200)

1,100

Salaries

24,000

54,600

54,600

Balance Sheet as on December 31, 2005

Liabilities

Amount

Rs

Assets

Amount

Rs

Rent Outstanding

1,500

Cash in Hand

2,600

10% Loan

20,000

Subscription Outstanding

1,200

Furniture

15,000

Stock of Postage Stamps

300

Capital fund Deficit (Balancing figure)

2,400

21,500

21,500

Balance Sheet as on December 31, 2006

Expenditure

Amount

Rs

Income

Amount

Rs

Rent Outstanding

1,500

Subscription Outstanding

2,300

10% Loan

20,000

Stock of Postage Stamps

200

Donation for Building

23,000

Billiard Table

14,000

Capital Fund

(2,400)

Furniture

15,000

Add: Life Membership Fee

7,000

Add: Purchases

10,000

Less: Deficit

(6,100)

25,000

Less: Depreciation

(2,500)

22,500

Cash in Hand

4,000

** Capital Fund (Deficit)

1500

44,500

44,500

NOTE 1: As per the solution, Deficit is Rs 6,100 and the total of the Balance Sheet as on Dec. 31, 2006 is Rs 44,500. However, as per the book, Deficit is Rs 8,100 and the total of the Balance Sheet as on Dec. 31, 2006 is Rs 53,500.

** NOTE 2:

Capital Fund

(2,400)

Add:

Life Membership Fees

7,000

Less:

Deficit

(6,100)

Net Deficit

1,500


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Q.

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).

Q.

From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended December 31, 2006 and the Balance Sheet as on that date.

Receipt and Payment Account for the year ending December 31, 2006

Receipts

Amount

Rs

Payments

Amount

Rs

Balance b/d

3,500

General expenses

900

Subscription:

2005

2006

2007

1,800

70,000

3,000

75,000

Salary

Postage

Electricity charges

Furniture

16,000

1,300

7,800

26,500

Sale of old Books

2,000

Books

13,000

(Costing Rs 3,200)

Newspapers

600

Rent from use of hall

17,000

Meeting expenses

7,200

Sale of newspapers

400

T.V. set

16,000

Profit from entertainment

7,300

Balance c/d

15,900

1,05,200

1,05,200

Additional Information:

(a)

The club has 100 members each paying an annual subscription of Rs900. Subscriptions outstanding on December 31, 2005 were Rs 3,600.

(b)

On December 31, 2006 , salary outstanding amounted to Rs 1,000, Salary paid included Rs 1,000 for the year 2005.

(c)

On January 1, 2006 the club owned land and building Rs 25,000, furniture Rs 2,600 and books Rs 6,200.

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