Question

Question

Answer 1

Income and Expenditure Account for the year ending March 31,2014
Dr.						Cr.
Expenditure			Amount (Rs)	Income		Amount (Rs)
Loss on Sale of Furniture			3,400	Subscription	96,000
Upkeep of Fields and Pavilion			3,400	Less: Outstanding in the beginning (2012-13)	800
Medicines		4,000		Add: Outstanding at the end (2013-14)	2500*
Add: Opening Stock (2012-13)		480		Add: Advance in the beginning (2012-13)	600
Less: Closing Stock (2013-14)		650	3,830	Less: Advance at the end (2013-14)	900	97,400
Match Expenses			8,800	Sales of Grass		200
Maintenance Expenses			3,600	Interest on Fixed Deposits	450
Rent & Taxes			8,950	Add: Accrued Interest	450	900
Grass Seeds			500	Donations		5,000
Depreciation on Furniture			1,500	Match Fund Receipts		12,000
Salaries	17,000			Members Admission Fees		3,500
Less: Outstanding in beginning (2012-13)	1,200
Add: Outstanding at the end (2013-14)		1,400	17,200
Surplus (Excess of Income over Expenditure)			67,820
			1,19,000			1,19,000

Balance Sheet as on March 31,2014
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital Fund			Furniture	20,000
Opening Balance	34,680		Less: Sale	5,000
Add: Surplus	67,820	1,02,500	Less: Depreciation	1,500	13,500
Subscription Received in Advance		900	Cash		1,500
Outstanding Salaries		1,400	Bank		6,000
			Fixed Deposits @ 9%		10,000
			Interest Accrued on Fixed Deposits		450
			Stock of Medicines		650
			Subscription Outstanding (2,500+200)		2,700
			Car		40,000
			Building		30,000
		1,04,800			1,04,800

Balance Sheet as on March 31,2013
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Subscription Received in Advance	600	Cash	800
Outstanding Salaries	1,200	Bank	4,200
Capital Fund (Balancing Figure)	34,680	Fixed Deposit @ 9%	10,000
		Stock of Medicines	480
		Furniture	20,000
		Subscription Outstanding	1,000
	36,480		36,480

* Subscription outstanding at the end of the year amounted to Rs 2,500 belongs to the year of 2013-14 only. It does not include the outstanding subscription of Rs 200 (1,000 – 800) for the previous year.

Note: Surplus as per the textbook is Rs 64,620. However, as per the above solution, the surplus works out to be Rs 67,820.