Question

From the given receipts and payment account and additional information of premier club for the
year ended 31" March, 2019, prepare Income and Expenditure Acct for the year ended 31st March,
2019 and Balance sheet as on that date:
Receipts and Payments Account of Premier Club for the year ended 31st March, 2019
Receipts
Amount
Payment
Amount
To bal.
b/d
80,900 By furniture and equipment 1,00,000
To donations
39,000 (Purchased on 1.10.2018)
To subscriptions:
By salaries
62,000
2017-18 12,000
By balc/d
68,600
2018-19 70,000
2019-20 9,000
91,000
To interest received
19,700
2,30,600
2,30,600
Additional Information:
a) On 1st April, 2018 the club had the following balances of assets and liabilities:
Furniture and Equipment Rs. 1,80,000, Subscriptions in arrears Rs. 15,000 and Outstanding
Salary Rs. 13,000
b) Charge depreciation on furniture and equipment @ 10% p.a.
c) The club had 90 members, each paying an annual subscription of Rs. 1,000.​

Answer 1

Answer:

Surplus: Rs.76,700

Capital Fund (1st April,2018): Rs.2,62,900

Balance Sheet Total: Rs.3,48,600

Answer 2

Answer:

Capital Fund (as on 1st April, 2018) = 2,62,900

Surplus (31st March, 2019 )              =     76,700

Balance Sheet Total                          = 3,48,600

Explanation:

The Income and Expenditure A/C, Balance Sheet of the previous as well as current Year has been attached.

Working Note

Calculation of Outstanding Subscription of the year ended   31st March, 2019

• Current Year ( 2018-9 ) Outstanding Subscription;

Subscription Payable ( 90 x 1,000)                          90,000

Less: Subscription Received                                    (70,000)

Subscription Outstanding(for year 2018-19)            20,000

• Previous Year (2017 - 18) Outstanding Subscription ;

Outstanding subscription as on 1st April, 2018           15,000

Less: Subscription received during the year              (12,000)

Outstanding Subscription  on 31st March 2019           3,000

Total Outstanding Subscription = 20,000 + 3000 = 23,000 /-

                     Calculation of Depreciation;

Furniture and Equipment as on 1st April, 2018 = 1,80,000

Less : Depreciation @ 10 % for one year          =    (18,000)

Old Furniture and Equipment Value                 =  1,62,000

New Furniture and equipment as on 1.10.2018 =  1,00,000

Less : Depreciation @ 10% for 6 months           =      (5,000)

New Furniture and Equipment Value                 =     95,000

Total Furniture and Equipment as on 31st March, 2019

= 1,62,000 + 95,000 = 2,57,000 Rs.

                                 Calculation of Salary;

Salary received during the year 2018 - 19             =  62,000

Less: Previous Year Outstanding                            = (13,000)

Salary in Income and Expenditure A/C                 = 49,000

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