Question

From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account and Balance Sheet for the year ending March 31, 2017.

Dr.	Receipt and Payment Account  for the year ending March 31, 2017		Cr.
Receipts	Amount (Rs)	Payments	Amount (Rs)
Cash in hand as on 1.4.16	6,800	Salaries	24,000
Subscription	60,200	Traveling Expenses	6,000
Donation	3,000	Stationery	2,300
Sale of furniture (Book value Rs 6,000)	4,000	Rent	16,000
Entrance fee	800	Repair	700
Life membership fee	7,000	Books purchased	6,000
Interest on investment (@ 5% for full year)	5,000	Building purchased	30,000
		Cash in hand as 31.3.2017	1,800
	86800		86800

Additional Information: 

		As on  1.04.2016	As on  31.03.2017
i)	Subscription received in advance	1,000	3,200
ii)	Outstanding subscription	2,000	3,700
iii)	Stock of stationery	1,200	800
iv)	Books	13,500	16,500
v)	Furniture	16,000	8,000
vi)	Outstanding rent	1,000	2,000

Answer 1

Books of Jan Kalyan Club Income and Expenditure Account as on 31 March 2017
Expenditure		Amount (Rs)	Income		Amount (Rs)
Loss on Sale of Furniture (Rs 6,000 – Rs 4,000)		2,000	Subscription	60,200	59,700
Salaries		24,000	Less: Outstanding for 2016	(2,000)
Traveling Expenses		6,000		58,200
Stationery	2,300	2700	Add: Outstanding for 2017	3,700
Add: Opening Stock	1,200			61,900
	3,500		Add: Advance in 2016	1,000
Less: Closing Stock	(800)			62,900
Repairs		700	Less: Advance in 2017	(3,200)
Rent	16,000	17,000	Donation		3,000
Less: Outstanding for 2016	(1,000)		Entrance Fees		800
	15,000		Interest on Investments		5,000
Add: Outstanding for 2017	2,000
Depreciation on Books		3,000
Depreciation on Furniture		2,000
Surplus		11,100
		68,500			68,500

 

Balance Sheet as on April 01, 2016
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Advance Subscription	1,000	Cash in Hand	6,800
Outstanding Rent	1,000	Investment `(5,000 × 100/5)`	1,00,000
Capital Fund (Balancing figure)	1,37,500	Subscription Outstanding	2,000
		Stock of Stationery	1,200
		Books	13,500
		Furniture	16,000
	139500		1,39,500

 

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Advance Subscription		3,200	Subscription Outstanding		3,700
Outstanding Rent		2,000	Stock of Stationery		800
Capital Fund	1,37,500	1,55,600	Investments		1,00,000
Add: Life membership Fees	7000		Books	13,500	16,500
Add: Surplus	11,100		Add: Purchases	6,000
				19,500
			Less: Depreciation	(3,000)
			Building		30,000
			Cash in Hand		1,800
			Furniture	16,000	8,000
			Less: Sales	6,000
				10,000
			Less: Depreciation	(2,000)
		1,60,800			1,60,800