Question

Following is the summary of Receipts and Payments of Jay Bajrangbali Vyayam Shala, Ajara for the year ending on 31.03.2007.

Receipts and Payments Account For the year ended on 31st March 2007
Dr.					Cr.
Receipts		Amount Rs.	Payments	Amount Rs.
To Balance b/d To Subscription      2005-06      2006-07 To Donation for Building To Receipts from Entertainments To Interest To Entrance fees		41,600   4,120 1,60,000 50,000   36,440 3,240 45,000	By Salary By Lighting By General Expenses By Entertainments Expenses By Taxes Paid By Printing and Stationery By Expenses paid of 2005-06 By Investment By Fixed Deposit with Ajara Urban Bank By Balance c/d	55,000 10,000 15,360 25,800 5,000 9,440 24,000 1,20,000 40,000   35,800
Total		3,40,400	Total	3,40,400

1. Jay Bajrangbali Vyayam Shala has 4500 members paying annual subscription of Rs. 40 each.

2. Provide for outstanding salary Rs. 5,000.

3. On 1.4.2006 the assets stood as under:

(a)	Land and Building	Rs. 60,000
(b)	Furniture	Rs. 46,000

Depreciate the above assets at 10% p. a.

4. Interest on Investment Rs. 2,000 is not received.

5. Capital Fund was Rs. 1,27,720 on 1.4.2006.

6. 50% of the entrance fees is to be capitalized.

Prepare: Income and Expenditure Account for the year ended 31st March, 2007 and Balance Sheet as on that date.  

Answer 1

In the books of Jay Bajrangbali Vyayam Shala
Income and Expenditure Account  for the year ending March 31,2007
Dr.							Cr.
Expenditure			Amount (Rs)	Income		Amount (Rs)
Printing and Stationery			9,440	Subscription (4,500 × 40)		1,80,000
General Expenses			15,360	Interest	3,240
Lighting			10,000	Add: Outstanding	2,000	5,240
Entertainment Expenses			25,800	Entrance Fees		22,500
Taxes			5,000	Receipts for Entertainment		36,440
Depreciation:
Furniture		4,600
Land and Building		6,000	10,600
Salaries paid		55,000
Add: Salaries Outstanding		5,000	60,000
Surplus (Excess of Income over Expenditure)			1,07,980
			2,44,180			2,44,180

 

Balance Sheet as on March 31, 2007
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital Fund	1,27,720		Furniture	46,000
Add: Entrance Fees	22,500		Less: Depreciation@ 10%	4,600	41,400
Add: Surplus	1,07,980	2,58,200	Land and Building	60,000
Donation for Building		50,000	Less: Depreciation@10%	6,000	54,000
Salaries Outstanding		5,000	Subscription Outstanding		20,000
			Interest Outstanding		2,000
			Fixed Deposit with Ajara Urban Bank		40,000
			Investment in Securities		1,20,000
			Cash		35,800
		3,13,200			3,13,200

 

Subscription Account
Dr.			Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
	Balance b/d	4,120		Cash	1,64,120
	Income & Expenditure A/c	1,80,000		Balance c/d	20,000
		1,84,120			1,84,120

Note: Expenses paid for 2005-06 will be recorded in the Opening Balance Sheet.