Receipt and Payment Account of Shankar Sports club is given below, for the year ended December 31, 2006.
Prepare Income and Expenditure Account and Balance Sheet with help of following Information:
(a) Subscription outstanding on 31st December 2005 is Rs 1, 200 and Rs 2,300 on 31.12.2006.
(b) 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.
(c) On January 1, 2006 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500 (d) On 31.12.2006. The club took a loan of Rs 20,000 (@ 10% p.a.) in 2005.
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: