Question

A/c.
Q. 38. Following is the Receipts and Payments Account of Chennai Sports Club :
RECEIPTS AND PAYMENTS ACCOUNT
Dr.
for the year ended 31st March, 2019
Receipts
Amount
Payments
Amount
3
Balance b/d
34,000 Municipal Taxes
20,000
Subscriptions
2,00,000 Charity
45,000
Govt. Grant
75,000 Rent
30,000
Legacies
1,50,000 Fixed Deposit with Bank
Donations
1,00,000 (on 1.07.2018 @ 10% p.a.) 3,00,000
Donations for Tournament
50,000 Meeting expenses
25,000
Sale of Defence Bonds
40,000 T.V. Set
40,000
Interest on Defence Bonds
6,000 Tournament Expenses
60,000
Interest received on F.D.
15,000 Furniture
15,000
Balance cld
1,35,000
6,70,000
6,70,000
Prepare Income and Expenditure Account for the year ended 31st March, 2019
and a Balance Sheet as at that date after the following adjustments :
(1) Subscriptions received during the year included 10,000 from a life member
and a Donation of 50,000 received for Building Fund.
(ii) Book value of Defence Bonds sold was $30,000; 860,000 of the Defence
Bonds were still in hand.
(iii) Municipal Taxes amounted to 320,000 per year is paid upto 30th June.
(iv) Rent 35,000 is related to the year ended 31st March 2018 and 2,500 is still
owing
(v) It was decided to treat 40% of the amount received on account of Legacies and
Donations as income.
(vi) On 1st April 2018, the club owned furniture 1,10,000; Furniture is valued at
1,05,000 on 31st March, 2019,
[Ans. Opening Capital Fund 52,34,000; Surplus 52,06,000; Balance Sheet Total
6,52,500.]
Hints :
(i) Tournament Expenses of 60,000 will be set off against Tournament Fund of
50,000. Excess Balance of Expenses i.e., 10,000 will be shown on the debit side
of Income & Expenditure Account.
(ii) Municipal Tax prepaid 5,000 in the beginning as well as at the end of the
year.
(iii) Depreciation on Furniture 520,000.​

Answer 1

Explanation:

opening capital fund Rs.234000,

surplus Rs. 206000

balance sheet total Rs. 652500