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 31st March, 2013 and the Balance Sheet as on that date :

Balance Sheet as on 01.04.2012

Liabilities	Amount	Assets	Amount
Capital fund	2,57,000	Buildings	2,50,000
Building fund	50,000	Furniture	20,000
Outstanding salary	1,300	Outstanding Subscription	1,000
		Cash in hand	2,400
		Cash at bank	34,900
	3,08,300		3,08,300

Receipts and Payments Account for the year ending 31.03.2013

Receipts	Amount	Amount	Payments	Amount	Amount
To Balance b/d			By Salaries		35,300
Cash in hand		2,400	By Furniture (Purchased on01.10.2012)		10,000
Cash at bank		34,900	By General expenses		8,400
To Subscriptions			By Printing and stationery		4,200
2011–12	1,000		By Drama expenses		16,000
2012–13	48,000		By Balance c/d
2013–14	2,000	51,000	Cash in hand		4,600
To Donations for			Cash at bank		57,800
building fund		20,000
To Drama receipts		28,000
		1,36,300			1,36,300

You are also required to consider the additional information given below:
(1) The club had 100 members, each paying  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 year 2012‐13 were  700.

Answer 1

Income and Expenditure Account
for the year ended 31st March,2013

Particulars	Amount	Amount	Particulars	Amount	Amount
To Salaries	35300		By Subscriptions	48000
Less: Previous year’s Outstanding Salaries paid	1300		Add: Outstanding for current year	2000	50000
Add: Outstanding for the current year.	700	34700	By Drama Receipts	28000
To General Expenses		8400	Less: Drama Expenses	16000	12000
To Printing & Stationery		4200
To Depreciation on Furniture		5000
To Excess of Income Over Expenditure (Surplus)		9700
		62000			62000

Balance Sheet as on 31st March, 213

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital Fund	257000		Buildings		250000
Add: Surplus	9700	266700	Furniture	20000
Building Fund	50000		Add: New Furniture Purchased	10000
Add: Donation for Building Fund	20000	70000	Less: Depreciation	5000	25000
Subscriptions received in advance		2000	Outstanding Subscription for 2012 - 13		2000
Outstanding salaries for 2012 - 13		700	Cash at Bank		57800
			Cash in Hand		4600
		339400			339400

Working Note :
1) Annual Subscription
= 100 members x  Rs. 500 as annual subscription
= Rs. 50,000

2) Depreciation on Furniture :
old Furniture = 20,000 x `20/100` = 4000
New Furniture purchased on 1.10.2012 = 10,000 x `20/100 xx 6/12` = 1000
total Depreciation = 5000.

3) Salary                                              = 35,300
Less: Previous year’s Outstanding
Salaries paid                                        = (1,300)  
                                                             = 34,000
Add: Outstanding salaries
for 2012 - 13                                        =   700      
                                                            = 34,700