The receipts and payment accounts of a club for the year ended 31December,2008 is given below.
RECEIPTS:
cash in hand 1500
subscription:
1)for 2007:300
2)for 2008: 16200
3)for 2009:150
income from entertainment: 290
Entrance fees:670
Interest on securities:480
Sale proceeds of old chairs:120
Total:19710
PAYMENTS
bank overdraft:3100
Investment in securities:3000
Furniture:1450
Salaries6200
Printing and stationery:890
Miscellaneous expenses:1420
Cash in hand:550
Cash at bank:3100
Ptepare an Income and Expenditure Account of the club for the year ended 31st December,2008 and a balance sheet as on that date haing due regard to the following additional information:
- The club has 1800 members, each paying an annual subscription of rs 10. Subscriptions amounting to rs 90 are still in arrear in respect of the year 2007.
- Stock of stationery on 31st December,2007 was rs 125 and on 31st december,2008 rs 87
- Entrance fees are to be capitalised.
- Salary of rs 550 for December,2008 is outstanding. Accrued miscellaneous expenses at 31st December, 2007 amounted to rs132. The club had paid rs 500 in the year 2007 towards telephone charges fof which rs 125 related to 2008
- As on 31st December,2007, premises stood in the books at rs 24500 and investment at rs 6500. Depreciate premises and furniture by 5%.
Income and Expenditure Account for the year ended December 31, 2008 | ||||||
Dr. |
| Cr. | ||||
Expenditure | Amount Rs | Income | Amount Rs | |||
Salaries | 6,200 |
| Subscription(1800 members × Rs 10 each) | 18,000 | ||
Add: Outstanding for 2008 | 550 | 6,750 | Income from Entertainment | 290 | ||
Miscellaneous Expenses | 1,420 |
| Interest on Securities | 480 | ||
Less: Accrued for 2007 | (132) | 1,288 | Sale of Old Chairs | 120 | ||
Telephone Charges (Advance for 2008) | 125 |
|
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Stationery Consumed (WN) | 928 |
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Depreciation on: |
|
|
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Furniture | 73 |
|
|
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Premises | 1,225 | 1,298 |
|
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Surplus (Balancing Figure) | 8,501 |
|
| |||
| 18,890 |
| 18,890 | |||
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Balance Sheet as on December 31, 2007 | |||
Liabilities | Amount Rs | Assets | Amount Rs |
Bank Overdraft | 3,100 | Subscription Outstanding (300 + 90) | 390 |
Accrued Miscellaneous Expense | 132 | Stationery | 125 |
Capital Fund (Balancing Figure) | 29,908 | Advance Telephone Charges | 125 |
|
| Investments | 6,500 |
|
| Premises | 24,500 |
|
| Cash in hand | 1,500 |
| 33,140 |
| 33,140 |
|
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|
|
Balance Sheet as on December 31, 2008 | |||||
Liabilities | Amount Rs | Assets | Amount Rs | ||
Advance Subscription | 150 | Subscription Outstanding |
| ||
Salaries Outstanding | 550 | For 2008 (18,000 - 16,200) | 1,800 |
| |
Entrance Fees | 670 | For 2007 still Outstanding | 90 | 1,890 | |
Capital Fund | 29,908 |
| Stationery | 87 | |
Add: Surplus | 8,501 | 38,409 | Investments | 6,500 |
|
|
| Add: Investments in Securities | 3,000 | 9,500 | |
|
| Furniture | 1,450 |
| |
|
| Less: Depreciation | (73) | 1,377 | |
|
| Premises | 24,500 |
| |
|
| Less: Depreciation | (1,225) | 23,275 | |
|
| Cash in Hand | 550 | ||
|
| Cash and Bank | 3,100 | ||
| 39,779 |
| 39,779 | ||
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Working Notes:
Calculation of Stationery Consumed
Stationery Consumed = Opening Stock + Purchased during the year – Closing Stock
= 125 + 890 – 87 = 928