Question

From the following Receipts and Payments account of Sivakasi Pensioner’s Recreation Club, prepare income and expenditure account for the year ended 31^st March, 2018 and the balance sheet as on that date.

Dr.	Receipts and Payments Account for the year ended 31st March, 2018			Cr.
Receipts	₹	₹	Payments	₹
To balance b/d			By Rent and rates	18,000
Cash in hand	10,000		By Electricity charges	17,000
Cash at bank	20,000	30,000	By Furniture purchased	12,000
To Subscription			By Billiards table purchased	70,000
2016 – 2017	5,000		By Repairs and renewals	16,000
2017 – 2018	25,000		By Special dinner expenses	4,000
2018 – 2019	6,000	36,000	By Special dinner expenses	2,000
To Legacies		40,000	By Balance c/d
To Rent from hall		14,000	Cash in hand	1,000
To Lockers rent		5,000
To Collection for special dinner		12,000
To Balance c/d
Bank overdraft		3,000
		1,40,000		1,40,000

Additional information:

1. The club had 300 members each paying ₹ 100 as annual subscription.
2. The club had furniture ₹ 10,000 on 1.4.2017.
3. The subscription still due but not received for the year 2016 – 2017 is ₹ 1,000.

Answer 1

Dr.	Income and Expenditure Account for the year ended 31.03.18			Cr.
Expenses	₹	Income	₹	₹
To Rent and rates	18,000	By Subscription	25,000
To Electricity charges	17,000	(+) Outstanding	5,000	30,000
To Repairs and renewals	16,000	By Hall Rent Received		14,000
To Special dinner expenses	4,000	By Lockers rent		5,000
To Special dinner expenses	2,000	By Collection for special dinner		12,000
To Income over Expenses (Surplus)	4,000
	61,000			61,000

Opening Balance Sheet as on 1.1.18

Liabilities	₹	Assets		₹
Capital Fund	46,000	Outstanding Subscription
		2016 – 17	5,000
		(+) O/s	1,000	6,000
		Cash in Hand		10,000
		Cash at Bank		20,000
		Furniture		10,000
	46,000			46,000

Balance Sheet as on 31.12.2019

Liabilities	₹	₹	Assets	₹	₹
Capital Fund	46,000		Subscription of
(+) Surplus	4,000	50,000	2018	5,000
Subscription Received in Adv.		6,000	2016	1,000	6,000
Legacies		40,000	Cash in hand		1,000
Bank Overdraft		3,000	Opening Furniture	10,000
			(+) Purchases	12,000	22,000
			Billiards Table		70,000
		99,000			99,000