Question

With the help of the Balance Sheet and Receipts and Payments Accounts of Adarsh Cultural Club, Mumbai, prepare Income and Expenditure Account for the year ended ${31}^{st}$ March, 2013 and the Balance Sheet as on that date:
You are also required to consider the additional information given below:
(1) The club had 100 members, each paying Rs. 500 as annual subscription.
(2) Furniture to be depreciated at 20% p.a.
(3) Salaries include Rs. 1,300 paid for outstanding salaries for the year 2011-12.
Salaries outstanding for the tear 2012-13 were Rs. 700.

Answer 1

Income and Expenditure A/c

For the year ending 31.3.2013

Expenditure	Amount	Income	Amount
To Salaries 35300		By Subscriptions (2012-13)48000	50000
Less: last year O/S (1300)		Add: current O/s 2000
Add: current O/S 700	34700	By drama receipts	28000
To depreciation on furniture	6000
To general expenses	8400
To Printing and stationary	4200
To drama expenses	16000
To excess of income over expenditure	8700
	78000		78000

Balance Sheet

As on 31.3.2013

Liabilities	Amount	Assets	Amount
Capital fund 257000	265700	Buildings	250000
Add: Surplus 8700		Furniture 20000
Building fund 50000	70000	Add: purchases 10000
Add: donations 20000		Less: depreciation (6000)	24000
O/S salaries	700	Cash in hand	4600
Advance Subscriptions	2000	O/S Subscriptions	2000
		Cash at bank	57800
	338400		338400