Question

From the following Receipts and Payment account and from the information given below of Ramanathapuram Sports Club, prepare Income and Expenditure account for the year ended 31^st December, 2018 and the balance sheet as on that date.

Dr.	Receipts and Payments Account for the year ended 31st December, 2018				Cr.
Receipts	₹	₹	Payments	₹	₹
To Balance b/d			By Rent		11,000
Cash in hand	5,000		By Entertainment expenses		11,200
Cash at bank	10,000	15,000	By Furniture		10,000
To Subscription			By Sports materials purchased		13,000
2017	12,000		By Match expenses		12,000
2018	33,000		By Investments made		28,000
2019	16,000	61,000	By Balance c/d
To Entrance fees		6,000	Cash in hand	1,300
To General donations		7,000	Cash at bank	4,000	5,300
To Sale of old sports materials		1,000
To Miscellaneous receipts		500
		90,500			90,500

Additional information:

1. Capital fund as on 1^st January 2018 ₹ 30,000.
2. Opening stock of sports material ₹ 3,000 and closing stock of sports material ₹ 5,000.

Answer 1

Dr.	Income and Expenditure Account for the year ended 31.12.18			Cr.
Expenses	₹	₹	Income	₹
To Rent		11,000	By Subscription	33,000
To Entertainment expenses		11,200	By General donations	7,000
To Sports materials purchased	13,000		By Sale of old sports materials	1,000
(+) Opening stock	3,000		By Miscellaneous receipts	500
	16,000		By Entrance fees	6,000
(−) Closing stock	5,000	11,000
To Match expenses		12,000
To Income Excess Over Exp. (Surplus)		2,300
		47,500		47,500

Balance Sheet as on 31.12.18

Liabilities	₹	₹	Assets	₹
Capital Fund	30,000		Furniture	10,000
(+) Surplus	2,300	32,300	Investment	28,000
Subscription Received in Advance 2019		16,000	Cash	1,300
			Bank	4,000
			Closing Sports materials	5,000
		48,300		48,300