Question

Receipts and Payments Account of Shankar Sports Club is given below for the year ended 31st March, 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.					Cr.
Receipts		(₹)	Payments	(₹)
To Cash in Hand (Opening)		2,600	By Rent	18,000
To Entrance Fee		3,200	By Wages	7,000
To Donation for Building		23,000	By Billiard Table	14,000
To Locker Rent		1,200	By Furniture	10,000
To Life Membership Fee		7,000	By Interest	2,000
To Profit from Entertainment		3,000	By Postage	1,000
To Subscription		40,000	By Salary	24,000
			By Cash In Hand (Closing)	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, 2018 is ₹ 1,200 and ₹ 2,300 on 31st March, 2019; opening stock of postage stamps is ₹ 300 and closing stock is ₹ 200; Rent ₹ 1,500 related to the year ended 31st March, 2018 and ₹ 1,500 is still unpaid. On 1st April, 2018 the club owned furniture ₹ 15,000, Furniture valued at ₹ 22,500 on 31st March, 2019. The club has a loan of ₹ 20,000 (@ 10% p.a.) which was taken, in year ended 31st March, 2018.

Answer 1

In the books of Shankar Sports Club
Dr.	Income and Expenditure A/c for the year ended 31st March, 2019				Cr.
Expenditure		Amount (₹)	Income			Amount (₹)
To Rent		18,000	By Entrance Fess			3,200
To Wages		7,000	By Locker Rent			1,200
To Interest		2,000	By Profit from Entertainment			3,000
To Postage Consumed (WN1)		1,100	By Subscriptions	40,000
To Depreciation on Furniture (WN2)		2,500	Less: Outstanding Sub. (31st March, 2018)	1,200
To Salary		24,000	Add: Outstanding Sub. (31st March, 2019)	2,300		41,100
			By Deficit- Excess of Expenditure over Income			6,100
		54,600				54,600

Working Notes:

1)

Postage Consumed	=	Opening Stock + Purchases – Closing Stock - Sales
	=	₹ (300 + 1,000 – 200) = ₹ 1,100

2)

Depreciation on Furniture	=	Opening Value + Purchases – Closing Value
	=	₹ (15,000 + 10,000 – 22,500) = ₹ 2,500

3)

Balance Sheet of Shankar Sports Club
as at 1st April, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Loan @ 10% p.a.	20,000	Furniture	15,000
Outstanding Rent	1,500	Postage	300
		Subscriptions Outstanding	1,200
		Cash in Hand	2,600
		Capital Fund Deficit (Balancing Figure)	2,400
	21,500		21,500

Balance Sheet of Shankar Sports Club
as at 31st March, 2019
Liabilities	Amount (₹)	Assets		Amount (₹)
Loan @10% p.a.	20,000	Capital Fund Deficit	2,400
Donation for Building	23,000	Add: Deficit	6,100	8,500
Outstanding Rent	1,500	Furniture		22,500
Life Membership Fees	7,000	Billiard Table		14,000
		Postage		200
		Subscriptions Outstanding		2,300
		Cash in Hand		4,000
		Furniture		22,500
	51,500			51,500