Question

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.

Answer 1

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