Question

Following is the Receipts and payments account of Virudhunagar Volleyball Association for the year ended 31^st December, 2018.

Dr.	Receipts and Payments Account for the year ended 31st December, 2018				Cr.
Receipts	₹	₹	Payments	₹	₹
To balance b/d			By Match expenses		25,000
Cash in hand		5,000	By Upkeep of pavilion		17,000
To Subscription			By Secretary’s honorarium		18,000
2017	10,000		By Bats and balls purchased		22,000
2018	55,000		By Grass seeds		2,000
2019	5,000	70,000	By Fixed deposit		58,000
To Donations		40,000	By Sundry expenses		3,000
To Match fund receipts		30,000	By Balance c/d
To Interest on fixed deposit		8,000	Cash in hand	7,000
To Miscellaneous receipts		5,000	Cash at bank	6,000	13,000
		1,58,000			1,58,000

Additional information:

1. On 1.1.2018, the association owned investments ₹ 10,000, premises and grounds ₹ 40,000, stock of bats and balls ₹ 5,000.
2. Subscription ₹ 5,000 related to 2017 is still due.
3. Subscription due for the year 2018, ₹ 6,000.

Prepare income and expenditure account for the year ended 31^st December, 2018 and the balance sheet as on that date.

Answer 1

Dr.	Income and Expenditure Account for the year ended 31.12.18			Cr.
Expenses	₹	Income	₹	₹
To Upkeep of pavilion	17,000	By Subscription	55,000
To Secretary’s honorarium	18,000	(+) O/s for 2018	6,000	61,000
To Grass seeds	2,000	By Donations		40,000
To Sundry expenses	3,000	By Match fund receipts	30,000
To Bats and balls purchased	22,000	(−) Match Fund Exp.	25,000	5,000
To Income over Expenditure (Surplus)	52,000	By Interest on fixed deposit		8,000
		By Miscellaneous receipts		5,000
	1,19,000			1,19,000

Opening Balance Sheet as on 1.1.18

Liabilities	₹	Assets	₹
Capital Fund	75,000	Cash	5,000
		Investment	10,000
		Premises	40,000
		Bats and Balls	5,000
		Subscription O/s 2017	15,000
	75,000		75,000

Balance Sheet as on 31.12.2109

Liabilities	₹	₹	Assets	₹	₹
Subscription Received in Adv.		5,000	O/s Subscription
Capital Fund	75,000		2017	5,000
(+) Surplus	52,000	1,27,000	2018	6,000	11,000
			Fixed deposit		58,000
			Investment		10,000
			Premises		40,000
			Cash in Hand		7,000
			Cash at Bank		6,000
		1,32,000			1,32,000