Question

From the following information relating to the Ganesh Cricket Club, prepare Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheet as at that date. The summary of cash transactions is:
.
Subscriptions due on 31st March, 2018 amounted to ₹ 7,500. Write off 50% of Bats, Balls (not considering sale ) and 25% of Printing and Stationery.

Answer 1

Calculation of Capital:

Capital= Assets - Liabilities

           = 52,000- 0

           =Rs 52,000

Depreciation:

Depreciation= Asset value x rate of interest x period

                     =22,000 x 50% x 1

                      = Rs 11,000

Depreciation of printing and stationary :

Depreciation= 3000 x 25% x 1

                    = Rs 750