Question

From the following transactions of Samarth Vyayamshala, Chandgad, prepare the Income and Expenditure Account and Balance Sheet as on 31^st March 2022.

Receipts and Payments Account As on 31st March 2022
Receipts	Amount (₹)	Amount (₹)	Payments	Amount (₹)
To Balance b/d		15,000	By Salaries	18,000
Cash in hand			By Entertainment expenses	7,440
To Subscriptions		55,230	By Sundry Expenses	3,900
2021-2022	54,000		By Electricity Charges	3,600
2022-2023	1,230		By Rent	2,100
To Donations		18,000	By Investment	45,000
To Receipts from entertainment		16,200	By Printing and Stationery	2,400
To Interest		1,200	By Postage	9,600
To Entrance Fees:		18,600	By Fixed Deposit	11,700
			By Balance C/d	20,490
		1,24,230		1,24,230

Adjustments:

1. Capital fund as on 1st April 2021 was 2,10,000.
2. Assets on 1st April 2021 were:
   Building 1,50,000
   Furniture 45,000
3. Provide depreciation on the building at 5% p.a. and on the furniture at 10% p.a.
4. 50% of entrance fees to be capitalised.
5. There are 1,500 members, each paying a yearly subscription of 50.

Answer 1

Dr.	Income and Expenditure Account for the year ended 31st March 2022				Cr.
Expenditure	Amount (₹)	Amount (₹)	Income	Amount (₹)	Amount (₹)
To Salaries		18,000	By Subscriptions	54,000	75,000
To Entertainment Exp.		7,440	Add: Outstanding	21,000
To Sundry Expenses		3,900	By Donations		18,000
To Electricity Charges		3,600	By Receipts from Ent.		16,200
To Rent		2,100	By Interest		1,200
To Printing & Stationery		2,400	By Entrance Fees (50%)		9,300
To Postage		9,600
To Depreciation:		12,000
Less: Building (5%)	7,500
Less: Furniture (10%)	4,500
To Surplus (Excess of Income over Expenditure)		60,660
		1,19,700			1,19,700

 

Balance Sheet as on 31st March 2022
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital Fund	2,10,000	2,79,960	Building	1,50,000	1,42,500
Add: 50% Entrance Fees	9,300		Less: Depreciation	7,500
Add: Surplus	60,660		Furniture	45,000	40,500
Subscription in Adv. (2022-23)		1,230	Less: Depreciation	4,500
			Investment		45,000
			Fixed Deposit		11,700
			O/S Subscription		21,000
			Cash in hand (C/d)		20,490
		2,81,190			2,81,190

Working Notes:

Outstanding Subscription:

Total required = 1,500 member × 50

= 75,000

Received for the current year = ₹ 54,000

75,000 − 54,000

21,000

Entrance Fees:

Total ₹ 18,600. 50% (₹ 9,300) is added to the Capital Fund, and 50% is treated as Income.