From the following Receipts and Payments Account of Sonic club and from the given additional information, prepare Income & Expenditure for the year ended 31st March, 2015 and the Balance sheet as at that date : Dr. Receipts and Payments Account for the year ending 31st March, 2015 Cr.Receipts Amount (Rs.) Payments Amount (Rs.)To Balance B/D To SubscriptionsTo Interest on investment @ 8% p.a. for full year 1,90,000 6,60,000 40,000 8,90,000By Salaries By Sports materialsBy Balance C/D 3,30,000 4,00,000 1,60,000 8,90,000 Additional information :- i) The club had received Rs 2,000 for subscription in 2013-14 for 2014-15. ii) Salaries had been paid only for 11 months. iii) Stock of sports materials on 31st March, 2014 was Rs. 3,00,000 and on 31st March, 2015 Rs. 6,50,000
Answers
Answer:
Explanation:
Income and expenditure account
To salaries 330000 By Subscription 660000
Add: outstanding salaries 30000 Add: Received 20000
To Sports material By interest on investment 40000
Opening stock 300000
Add: purchases 400000
Less: closing stock 650000
To Surplus 310000
7,20,000 7,20,000
BALANCE SHEET
Outstanding salaries 30000 Cash 160000
Capital Fund 970000 Stock of sports 650000
Add : Surplus 310000 Investment 500000
1310000 1310,000