Question

Prepare Income and Expenditure Account and Balance Sheet for the year ended December 31, 2016 from the following Receipt and Payment Account and Balance Sheet of culture club:

Receipt and Payment Account 
for the year ending March 31, 2016

Receipts		Amount (Rs)	Payments	Amount (Rs)
Opening cash balance		12000	Furniture	4,000
Subscription			Telephone expenses	800
2014-2015	2,000	24,000	Salary
2015-2016	22,000		2014-2015	1000
Entrance fees		2,800	2015-2016	4000
Locker rent		1000	Newspapers	700
Life membership fee		1200	Sundry expenses	1,000
Government grant		11,000	Defence bonds	18,000
			Land	20,000
			Closing cash balance	2,500
		52000		52,000

Balance Sheet 
for the year ending March 31, 2015

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Advance locker rent	200	Cash in hand	12,000
Subscription Received in	1,000	Outstanding Expenses	3,000
Advance Outstanding salary	2,000	Building	35,000
Loan	10,000
Capital fund	36,800
	50000		50000

Answer 1

Books of Culture Club
Income and Expenditure Account
as on March 31, 2016 

Dr.                                                                                 Cr.

Expenditure	Amount (Rs)	Income		Amount (Rs)
Telephone Expenses	800	Subscription	22000	23000
Salary	4,000	Add: Advance Received in 2015	1,000
Newspapers	700	Entrance Fees		2,800
Sundry Expenses	1,000	Locker Rent	1000	1200
Surplus (Balancing figure)	31,500	Add: Advance Received in 2015	200
		Government Grants		11000
	38000			38000

Balance Sheet 
as on March 31, 2016 

Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital Fund	36,800	69,500	Subscription Still Outstanding for 2015 (Rs 3,000 – Rs 2,000)	1,000
Add: Life Membership Fees	1,200		Furniture	4,000
Add: Surplus	31,500		Defence Bonds	18,000
Salary Still Outstanding for 2015		1000	Land	20,000
Loan		10000	Building	35,000
			Cash in Hand	2,500
		80500		80500