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From the Following Receipt and Payment Account of a Club, Prepare Income and Expenditure Account for the Year Ended March 31, 2017 and the Balance Sheet as on that Date. - Accountancy

Ledger

From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended March 31, 2017 and the Balance Sheet as on that date.

Receipt and Payment Account
for the year ending March 31, 2017

Receipts Amount (Rs) Payments Amopunt (Rs)
Balance b/d 3500 General expenses 900
Subscription:   Salary 16000
2015 - 16 2000 75000 Postage 1300
2016 - 17 70000 Electricity charges 7800
2017 - 18 3000 Furniture 26500
Sale of old Books
(Costing Rs 3,200)
2000 Books 13000
Rent from use of hall 17000 Newspapers 600
Sale of newspapers 400 Meeting expenses 7200
Profit from entertainment 7300 T.V. set 16000
    Balance c/d 15,900
  105200   105200

Additional Information :

1. The club has 100 members each paying an annual subscription of Rs 900. Subscriptions outstanding on March 31, 2016 were Rs 3,600.

2. On March 31, 2017, salary outstanding amounted to Rs 1,000, Salary paid included Rs 1,000 for the year 2012.

3. On April 1, 2017 the club owned land and building Rs 25,000, furniture Rs 2,600 and books Rs 6,200.

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Solution

Income and Expenditure Account 
as on December 31, 2017

Dr.                                                                                   Cr.

Expenditure Amount (Rs) Income Amount (Rs)
General Expenses 900 Subscription 70000 90000
    Add: Outstanding for 2017
(100 members at Rs 900 each)
20000
    Rent from use of hall 17000
Salary 16,000 16000 Sale of Old News Papers 400
Add: Outstanding for 2017
1000 Profit from Entertainment 7300
  17,000    
Less: Outstanding for 2016 (1000)  
Loss on Sale of Old Books 1200  
Electricity Charges 7800  
Newspapers 600  
Meeting Expenses 7200  
Postage 1300  
Surplus (Balancing figure) 79700  
  114700   114700

Balance Sheet as on March 31, 2016

Liabilities Amount (Rs) Assets Amount (Rs)
Salary Outstanding 1000 Subscription Outstanding 3600
Capital Fund (Balancing figure) 39900 Furniture 2600
    Books 6200
    Cash and Bank 3500
    Building 25000
  40900   40900

Balance Sheet 
as on March 31, 2017 

Liabilities Amount (Rs) Assets Amount (Rs)
Advance Subscription 3000 Subscription Outstanding  
Salary Outstanding 1000 2017 20000 21600
Capital Fund

39,900

119600 Add: 2016 (Still Outstanding) 

1,600

Add: Surplus 79,700 Building 25000
    Furniture 2600 29100
  Add: Purchases 26500
  Books 6,200 16000
  Add: Purchases 13000
    19200
  Less: Sales 3200
  T.V. Set 16000
  Cash and Bank 15900
  123600   123600
Concept: Preparation of Receipts and Payments Account
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APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 1 Accounting for Not-for-Profit Organisation
Numerical Questions | Q 17 | Page 60
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