The Receipts and Payments Account of Youth Club for the year ended 31st March 2007 is as under:
RECEIPTS:
To Balance b/d: 450
To Sale of Billiard Table (At Book Value): 4000
ToDonations for Building:250000
To Subscriptions(Including Rs 2000for 2005-06): 18000
To Interest (@ 7% on Investments for full year): 7000
Total:2,79,450
PAYMENTS:
By Rent for Playground( Includingn Rs 1000 for 2005-06): 12000
By refreshment expenses:2700
By Travelling Expenses:810
By Investments (31.3.2007): 20,000
By Sports Equioment: 70200
By Tournament Fees: 18100
By Affialiation fees:7100
By Salary: 21800
By Miscellaneous Expenses: 7200
By balance c/d: 119540
Total: 2,79,450
Prepare the Club's Income and Expenditure Account for the year ended 31st March 2007 and the Balance Sheet as on that date, after taking the following information into account:
- The Book value of the Billiard Table sold was 4000
- The rent for play-ground 2000 and salary 5000 for the year 2006-07 are still outstanding
- Subscriptions amounting to 4,500 are still outstanding for 2005-06 and 8100 for 2006-07
- As at 31.03.2006, the club had buildng 500000; furniture 51000; fax machine 12500 and computers 70000. Depreciation is charged on these assets @ 10% pa
- Stock of Sports Equipkents as on 31.3.2006 and 31.3.2007 were 10810 and 12890 respectively
Income and Expenditure A/c | |||||
Dr. |
|
| Cr. | ||
Expenditure | Amount Rs | Income | Amount Rs | ||
Rent | 12,000 |
| Subscription | 18,000 |
|
Less: Outstanding for year 2005-06 | (1,000) |
| Less: Subscription outstanding 2005-06** | (6,500) |
|
Add: Outstanding for year 2006-07 | 2,000 | 13,000 | Add: Subscription outstanding at the end of 2006-07## | 12,600 | 24,100 |
Refreshment Expenses | 2,700 | Interest on Investment | 7,000 | ||
Travelling Expenses | 810 | Deficit (Excess of Expenditure over Income) | 1,72,080 | ||
Sports equipments used* | 64,120 |
|
| ||
Tournament Fees | 18,100 |
|
| ||
Affiliation Fees | 7,100 |
|
| ||
Salary | 21,800 |
|
|
| |
Add: Outstanding for year 2006-07 | 5,000 | 26,800 |
|
| |
Miscellaneous Expense | 7,200 |
|
| ||
Depreciation |
|
|
| ||
Building | 50,000 |
|
|
| |
Furniture | 5,100 |
|
|
| |
Fax Machine | 1,250 |
|
|
| |
Computer | 7,000 | 63,350 |
|
| |
| 2,03,180 |
| 2,03,180 | ||
|
|
|
| ||
* Sports Equipments Used during the year = Opening Stock + Purchases during the Year – Sale during the Year - Closing Stock
= 10,810 + 70,200 – 4,000(Billiards table) - 12,890 = Rs 64,120
** Outstanding Subscription for the year 2005-06= Subscription received during the current year (2006-07) for previous year + Subscription still outstanding for 2005-06 at the end of the current year (2006-07)
That is, Rs 2,000 + Rs 4,500 = Rs 6,500
## Outstanding Subscription at the end of the current year, 2006-07 = Outstanding Subscription for last year (at the end of this year) + Outstanding Subscription for the current year.
Total Outstanding Subscription at the end of 2006-07 = 4,500 + 8,100 = Rs 12,600
Balance Sheet as on 31.3.2006 | |||
Liabilities | Amount Rs | Assets | Amount Rs |
Rent Outstanding | 1,000 | Cash | 450 |
Capital Fund (Balancing figure) | 7,50,260 | Subscription outstanding (4,500 + 2,000) | 6,500 |
|
| Stock of Sports Equipments | 10,810 |
|
| Building | 5,00,000 |
|
| Furniture | 51,000 |
|
| Fax Machine | 12,500 |
|
| Computer | 70,000 |
|
| Investment (7,000/7 × 100) | 1,00,000 |
| 7,51,260 |
| 7,51,260 |
|
|
|
|
Balance Sheet as on 31.3.2007 | |||||
Liabilities | Amount Rs | Assets | Amount Rs | ||
Capital Fund |
| Cash | 1,19,540 | ||
Opening Balance | 7,50,260 |
| Subscription Outstanding (4,500 + 8,100) | 12,600 | |
Less: Deficit | (1,72,080) | 5,78,180 | Stock of Sport Equipment | 12,890 | |
Donation for Building | 2,50,000 | Building | 5,00,000 |
| |
Rent Outstanding | 2,000 | Less: Depreciation | (50,000) | 4,50,000 | |
Salary Outstanding | 5,000 | Furniture | 51,000 |
| |
|
| Less: Depreciation | (5,100) | 45,900 | |
|
| Fax Machine | 12,500 |
| |
|
| Less: Depreciation | (1,250) | 11,250 | |
|
| Computer | 70,000 |
| |
|
| Less: Depreciation | (7,000) | 63,000 | |
|
| Investment | 1,00,000 |
| |
|
| Add: Purchased | 20,000 | 1,20,000 | |
| 8,35,180 |
| 8,35,180 | ||
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