Question

Receipts and Payments Account of Shankar Sports Club is given below, for the year ended 31st March, 2018:

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RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018
Dr.					Cr.
Receipts		₹	Payments	₹
To Cash in Hand (Opening) To Entrance Fee To Donation for Building To Locker Rent To Life Membership Fee To Profit from Entertainment To Subscription		2,600 3,200 23,000 1,200 7,000 3,000 40,000	By Rent By Wages By Billiard Table By Furniture By Interest By Postage By Salary By Cash In Hand (closing)	18,000 7,000 14,000 10,000 2,000 1,000 24,000 4,000
		80,000		80,000

Prepare Income and Expenditure Account and Balance Sheet with the help of following information:
Subscription outstanding on 31st March, 2017 is ₹ 1,200 and ​₹ 2,300 on 31st March, 2018; opening stock of postage stamps is ₹ 300 and closing stock is ₹ 200; Rent ₹ 1,500 related to the year ended 31st March, 2017 and ₹ 1,500 is still unpaid. On 1st April, 2017 the club owned furniture ₹ 15,000, Furniture valued at ₹ 22,500 on 31st March, 2018. The club has a loan of ​₹ 20,000(@ 10% p.a.) which was taken , in year ended 31st March,2017.

Answer 1

Income and Expenditure Account for the year ending March 31, 2018
Dr.					Cr.
Expenditure		Amount (₹)	Income		Amount (₹)
Rent	18,000		Entrance Fee		3,200
Add: Current O/s	1,500		Locker Rent		1,200
Less: Previous O/s	1,500	18,000	Profit from Entertainment		3,000
Postage	1,000		Subscription	40,000
Add: Outstanding	300		Add: Current O/s	2,300
Less: Closing	200	1,100	Less: Previous O/s	1,200	41,100
Wages		7,000	Deficit		6,100
Interest		2,000
Salaries		24,000
Depreciation on Furniture		2,500
		54,600			54,600

Balance Sheet as on March 31, 2018
Liabilities	Amount (₹)	Assets		Amount (₹)
Outstanding Rent	1,500	Cash in Hand		4,000
10% Loan	20,000	Billiards Table		14,000
Donation for Building	23,000	Subscription Outstanding		2,300
		Stock of Postage Stamps		200
		Furniture	15,000
		Add: Purchases	10,000
		Less: Depreciation	2,500	22,500
		Capital Fund
		Opening Balance	(2,400)
		Less: Deficit	(6,100)
		Add: Life Membership Fee	7,000	1,500
	44,500			44,500

Working Notes

WN1: Ascertainment of Capital Fund

Balance Sheet as on March 31, 2017
Liabilities	Amount (₹)	Assets	Amount (₹)
Outstanding Rent	1,500	Furniture	15,000
10% Loan	20,000	Subscription Outstanding	1,200
		Stock of Stationery	300
		Cash in Hand	2,600
		Capital Fund (Deficit)	2,400
	21,500		21,500

Note: The total of Closing Balance Sheet in the textbook is Rs 51,500. However, as per the above solution, the total of Closing Balance Sheet stands at Rs 44,500