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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.

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Solution

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


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