Question

From the following Receipt and Payment Account prepare final accounts of a Unity Club for the year ended March 31, 2017.

Receipt and Payment Accounts for the year ending March 31, 2017
Receipts		Amount (Rs)	Payments	Amount (Rs)
Balance b/d		15,000	Furniture	18,000
Sale of Old furniture (costing Rs 6,000)		4,000	Library books	10,000
Subscriptions:			Salaries	72,000
2015–16	18,000		General expenses	18,000
2016–17	60,000		Electric charges	12,000
2017–18	12,000	90,000	Newspapers	33,800
Sale of old newspapers		10800	Postage	3,000
Profit from entertainment		44,000	Stationery	40,000
Rent		84000	Audit fee	8,000
			Balance c/d	33,000
		2,47,800		2,47,800

 

Balance Sheet as on March 31, 2016
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Outstanding Salary	6,000	Cash	15,000
Capital Fund	6,94,000	Outstanding subscription	18,000
		Library Books	30,000
		Furniture	37,000
		Land and Building	6,00,000
	7,00,000		7,00,000

Additional Information: 

1. The club has 500 members each paying an annual subscription of Rs 150.

2. On 31.3.2016 salaries outstanding amounted to Rs 1200 and salaries paid included Rs. 6000 for the year 2015 - 16

3. Provide 5% depreciation on land and building.

Answer 1

In the Books of Unity Club  

Dr.	Income and Expenditure Account as on March 31, 2017					Cr.
Expenditure			Amount (Rs)	Income	Amount (Rs.)
Loss on Sale of Old Furniture (4,000 – 6,000)			2,000	Subscription 500 members at Rs 150 each	75,000
Salaries		72,000		Sale of Old Newspapers	10,800
Add: Outstanding for 2016–17		1,200		Profit from Entertainment	44,000
		73,200		Rent	84,000
Less: Outstanding for 2015–16		(6,000)	67,200
General Expenses			18,000
Electric Charges			12,000
Newspapers			33,800
Postage			3,000
Stationery			40,000
Audit Fees			8,000
Depreciation on Land and Building			30,000	Deficit (Balancing figure)	200
			2,14,000		2,14,000

 

Balance Sheet as on 31 March 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Advance Subscription (for 2017–18)		12,000	Subscription Outstanding (75,000 - 60,000)		15,000
Salaries Outstanding		1,200	Furniture	37,000
Capital Fund	6,94,000		Add: Purchases	18,000
Less: Deficit	(200)	6,93,800		55,000
			Less: Sales	(6,000)	49,000
			Library Books	30,000
			Add: Purchases	10,000	40,000
			Land and Building	6,00,000
			Less: 5% Depreciation	(30,000)	5,70,000
			Cash and Bank		33,000
		7,07,000			7,07,000