Question

Prepare Income and Expenditure Account and Balance Sheet for the year ended December 31, 2016 from the following Receipt and Payment Account and Balance Sheet of culture club:

Receipt and Payment Account for the year ending March 31, 2016
Receipts		Amount Rs	Payments	Amount Rs
Opening cash balance		12,000	Furniture	4,000
Subscription			Telephone expenses	800
2014-2015	2,000		Salary
2015-2016	22,000	24,000	2014-2015	1,000
Entrance fees		2,800	2015-2016	4,000
Locker rent		1,000	Newspapers	700
Life membership fee		1,200	Sundry expenses	1,000
Government grant		11,000	Defence bonds	18,000
			Land	20,000
			Closing cash balance	2,500
		52,000		52,000

Balance Sheet for the year ending March 31, 2015
Liabilities	Amount Rs	Assets	Amount Rs
Advance locker rent	200	Cash in hand	12,000
Subscription Received in Advance	1,000	Outstanding Expenses	3,000
Outstanding salary	2,000	Building	35,000
Loan	10,000
Capital fund	36,800
	50,000		50,000

Answer 1

Books of Culture Club Income and Expenditure Account as on March 31, 2016
Dr.							Cr.
Expenditure		Amount Rs	Income			Amount Rs
Telephone Expenses		800	Subscription	22,000
Salary		4,000	Add: Advance Received in 2015	1,000		23,000
Newspapers		700
Sundry Expenses		1,000	Entrance Fees			2,800
			Locker Rent		1,000
Surplus (Balancing figure)		31,500	Add: Advance Received in 2015		200	1,200
			Government Grants			11,000
		38,000				38,000

Balance Sheet as on March 31, 2016
Liabilities		Amount Rs	Assets	Amount Rs
Capital Fund	36,800		Subscription Still Outstanding for 2015	1,000
Add: Life Membership Fees	1,200		(Rs 3,000 – Rs 2,000)
Add: Surplus	31,500	69,500	Furniture	4,000
			Defence Bonds	18,000
Salary Still Outstanding for 2015		1,000	Land	20,000
Loan		10,000	Building	35,000
			Cash in Hand	2,500
		80,500		80,500