Question

Modern Club's Balance Sheet as at 1st April , 2017 was as under:

Liabilities		₹	Assets	₹
Capital Fund		2,00,000	Sports Equipments	50,000
Tournament Fund		60,000	Grounds	1,20,000
Subscriptions in Advance		6,000	Billiards Table	60,000
Salaries Unpaid		11,000	Subscriptions Outstanding	8,000
			​Cash and Bank Balances	39,000
		2,77,000		2,77,000

The Receipts and Payments Account for the year ended 31st March, 2018 was:

RECEIPTS AND PAYMENTS ACCOUNT
Dr.					Cr.
Receipts		₹	Payments	₹
To Opening Balance		39,000	​By Wages and Salaries	60,000
To Subscriptions		1,81,000	By Upkeep of Grounds	10,000
To Sale of old Materials		1,500	By Stationery	15,000
To Sale of Sports Equipment		6,000	By Audit Fee	2,000
( Costing ₹ 10,000)			By Expenses on Teams	65,000
To Entrance Fees		2,000	By Sports Equipments	20,000
To Life Membership Fees		50,000	By 5% Investments	40,000
To Donations for Tournament		20,000	( On 1st October, 2017)
			By Cash and Bank Balances	87,500
		2,99,500		2,99,500

Subscriptions still to be received are ​₹ 5,500 but subscriptions already received include ₹ 4,000 for next year. Salaries still unpaid are ₹ 6,000 . Sports Equipments are now valued at ₹ 45,000. Prepare Income and Expenditure Account and the Balance Sheet , after charging 10% depreciation on Billiards Tables.

Answer 1

Income and Expenditure Account for the year ended March 31, 2018
Dr.							Cr.
Expenditure			Amount (Rs)	Income		Amount (Rs)
Loss on Sale of Sports Material (10,000 – 6,000)			4,000	Subscription	1,81,000
Wages and Salaries		60,000		Add: Subscriptions Outstanding for 2017-18	5,500
Add: Outstanding in 2017-18		6,000		Less: Subscription Outstanding for 2016-17	8,000
Less: Outstanding in 2016-17		11,000	55,000	Add: Advance received for 2017-18	6,000
Stationery			15,000	Less: Advance Received for 2018-19	4,000	1,80,500
Audit Fee			2,000	Sale of Old Materials		1,500
Expenses on Teams			65,000	Entrance Fees		2,000
Depreciation on Billiards Tables (6,000 × 10%)			6,000	Interest accrued on Investments (40,000 × 5% × 6/12)		1,000
Consumption of Sports Equipments (5,000 + 2000 – 1,000 – 4,500)			15,000
Upkeep of Grounds			10,000
Surplus (Balancing Figure)			13,000
			1,85,000			1,85,000

Balance Sheet as on March 31, 2018
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital Fund	2,00,000		Subscriptions Outstanding			5,500
Add: Surplus	13,000		Sports Equipment	50,000
Add: Life Membership Fees	50,000	2,63,000	Add: Purchases	20,000
Tournament Fund	60,000		Less: Book Value of Sold Equipments	10,000
Add: Donations	20,000	80,000		60,000
Salaries Unpaid		6,000	Less: Consumption	15,000		45,000
Subscriptions in Advance		4,000	Grounds			1,20,000
			Billiards Tables	60,000
			Less: 10% Depreciation	6,000		54,000
			Cash and Bank Balances			87,500
			Investments		40,000
			Add: Accrued interest		1,000	41,000
		3,53,000				3,53,000