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​How Are the Following Dealt with While Preparing the Final Accounts of a Sports Club for the Year Ended 31st March, 2019? - Accountancy

Ledger

​How are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March, 2019?

RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31st March, 2019

Dr.   Cr.

Receipts

Payments 
To Sale of Sports Materials 26,000 ​By Creditors for Sports Materials 61,000
(Book value ₹ 20,000)   By Cash purchase of Sports Materials 10,000

Additional information :

  As at 31st March, 2018
(₹)
As at 31st March, 2019
(₹)
Sports Materials  20,000  25,000
Creditors for Sports Materials    7,000  15,000
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Solution

Income and Expenditure Account
for the year ended March 31, 2019

Dr.

 

Cr.

Expenditure 

Amount
(₹)

Income

Amount
(₹)

Payment for Sports Material

71,000

 

Profit on Sale of Sports Material (26,000 – 20,000)

6,000

Add: Opening Stock

20,000

 

 

 

Less: Closing Stock

(25,000)

 

 

 

Less: Creditors in the beginning

(7,000)

 

 

 

Add: Creditors at the end

15,000

 

 

 

Less: Book Value of Material Sold

(20,000)

54,000

 

 

 

Balance Sheet
as on March 31, 2018

Liabilities 

Amount
(₹)

Assets

Amount
(₹)

Creditors for Sport Materials

7,000

Stock of Sport Materials

20,000

 

Balance Sheet
as on March 31, 2019

Liabilities 

Amount
(₹)

Assets

Amount
(₹)

Creditors for Sport Materials

15,000

Stock of Sport Materials

25,000

Concept: Preparation of Income and Expenditure Account
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APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 1 Financial Statements of Not for Profit Organisations
Exercise | Q 29 | Page 62
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