Question

The following is the Receipts and Payments Account of Calcutta Women's Sports Club for the year ended 31st December, 2012.

$\begin{array}{cccc}\text{Receipts}& \text{Amount}& \text{Payments}& \text{Amount}\\ & \text{(Rs)}& & \text{(Rs)}\\ \text{To Donations}& 12,000& \text{By Rent}& 18,000\\ \text{To Subscriptions}& 25,000& \text{By Salary}& 25,000\end{array}$

$\begin{array}{cccc}\text{To Bar Receipts}& 60,000& \text{By Rates and Taxes}& 7,200\\ \text{To Billard Fees}& 5,200& \text{By Bar Purchases}& 45,000\\ \text{To Table Tennis Fees}& 4,000& \text{By Furniture}& 5,000\\ \text{To Card Room Fees}& 3,500& \text{By Stationery}& 8,000\\ \text{To Grant}& 10,000& \text{By Telephone}& 2,500\\ \text{To Advertisement in Club's year-book}& 5,700& \text{By Postages}& \\ & & \text{By Balance c/d:}& 3,200\\ & & \text{Cash}& 800\\ & & \text{Bank}& 7,700\\ & \overline{\underset{–}{\underset{–}{1,25,400}}}& & \overline{\underset{–}{\underset{–}{1,25,400}}}\end{array}$

Additional Information :

(i) Donations are for instituting a prize fund.

(ii) Subscription in arrears Rs 3,000 and pre-received Rs 500.

(iii) Salary is paid @ Rs 2,500 per month.

(iv) Salary of Rs 1,000 is prepaid.

(v) Rent is paid for 3 years in advance.

(vi) Bar stock unused Rs 8,000 and stationery unused Rs 2,500.

(vii) Sundry persons owed Rs 1,500 for advertisement in Club's year-book.

You are required to prepare Income and Expenditure Account for the year ended 31st Dec. 2012.

Answer 1

Calcutta
Income and Expenitures A/c
for the years ended 31.12.2012

$\begin{array}{cccccc}\text{Expenditures}& & \text{Amount}& \text{Incomes}& & \text{Amount}\\ & & \text{(Rs)}& & & \text{(Rs)}\\ \text{Expenditures}& 18,000& & \text{By Subscription}& 25,000& \\ \text{Less: Prepaid Rent}& \underset{–}{12,000}& 6,000& \text{Add: In arrears}& \underset{–}{3,000}& \\ \text{To Salary}& 28,000& & & 28,000& \\ \text{Less: Prepaid}& \underset{–}{1,000}& & \text{Less:In advance}& \underset{–}{500}& 27,500\\ & 27,000& & \text{By Bar Receipts}& & 60,000\\ \text{Add: Outstanding}& \underset{–}{3,000}& 30,000& \text{By Billiards fees}& & 5,200\\ \text{To Rates and Taxes}& & 7,200& \text{By Table Tennis fees}& & 4,000\\ \text{To Bar Purchase}& 45,000& & \text{By Card room fees}& & 3,500\\ \text{Less: Closing Stock}& \underset{–}{8,000}& 37,000& \text{By Grant}& & 10,000\\ \text{To Stationery}& 8,000& & \text{By Advt. in Clubs year}& & \\ \text{Less: Unused}& \underset{–}{2,500}& 5,500& \text{book}& 5,700& \\ \text{To Telephone}& & 2,500& \text{Add: O/s advt.}& \underset{–}{1,500}& 7,200\\ \text{To Postage}& & & & & \\ \text{To Surplus (Excess of )}& & & & & \\ \text{Income over exp.}& & 26,000& & & \\ & & \overline{\underset{–}{\underset{–}{1,17,400}}}& & & \overline{\underset{–}{\underset{–}{1,17,400}}}\end{array}$

Note : 1. Grant is treated as a revenue nature.

2. As donations are for institnting a prize fund, donations will be shown in balance sheet.