Prepare Income and Expenditure account of a sports club for the year ending 31st December, 2008. Following is the receipts and payment account for the year ending for the 31st December, 2008.Receipts- to balance B/D Rs.4,500; to subscription (including '1,000 for 2009) Rs.50,000; to interest Rs.4,000; to donation Rs.6,000; to donation for building Rs.40,000; to match fund Rs.25,000; to sale of grass Rs.2,000; to charity show proceeds Rs.20,000= 1,51,500.Payments- by match expenses Rs.21,000; by rent Rs2,000; by salaries Rs.3,000; by 10% investment Rs.80,000; by sports equipment Rs.15,000; by furniture (1.1.2008) Rs.12,000; by honorarium Rs.2,000; by charity show expenses Rs.15,000; by balance C/D Rs.1,500=1,51,500.On 1st january 2008, club owned Land and Building valued Rs.40,000 and Furniture vaued Rs.10,000. There were 100 life members on that date, each of whome paid subscription of Rs.100. Subscription due on 31.12.2007 and 31.12.2008 were Rs.2,500 and Rs.2,000 respectively. Depreciation charged on sports equipment @20% and on furniture @10% p.a. Does it promote any value. Give any two value.
|Income and Expenditure Account
for the year ending Dec. 31,2008
|Expenses of charity Show||15,000||Proceeds from Charity Show||20,000|
|Sports Equipments||3,000||Sale of Grass||2,000|
|Surplus (Excess of Income over Expenditure)||18,800|
Note: When with the rate of depreciation word "per annum" is not given then it should be charged for whole.
Values involved in the above scenario;
1. Promotion of Sports
2. Social Welfare