Question

32. Following is the Receipt and Payment Account of Indian Sports Club for the year ended
31-3-2020.
Receipts
Amount Payments
Amount
Balance b/d
10,000 Salary
15,000
Subscriptions
52,000 Billiard Table
20,000
Entrance Fee
5000
Official expenses
6000
Tournament Fund 26000 Tournament Expenses
31,000
Sale of old newspapers 1000
Sports Equipment
40,000
Legacy
37000
Balance c/d
19,000
1,31,000
1,31,000
Other Information
On 31-3-2020 subscription outstanding was Rs. 2000 and on 31-3-2019 subscription
outstanding was Rs. 3000. Salary outstanding on 31-3-2020 was Rs. 1500.
On 1-4-2019 the club had building Rs. 75,000, furniture Rs. 18,000, 12% investment Rs.
30,000 and sports equipment Rs. 30,000. Depreciation charged on these items including
Billiard Table was 10%.
Prepare Income and Expenditure Account of the Club for the year ended 31-3-2020 and
a Balance Sheet as at that date.​

Answer 1

Answer:

Surplus = Rs. 14,800

Notes:

SUBSCRIPTION= 52000+2000(o/s at the end) - 3000(o/s in the beginning)= 51000

Legacy is a liability

Billiard table is an asset

Tournament expenses = 31000-26000

Answer 2

assets = 1,56,000

therefore capital fund = 1,56,000