question_answer

Following is the receipts and payments account of Star Literary Club for the year ended on or 31st March, 2018: Receipts and Payments Account Dr                                             for the year ending 31st March, 2018                                                         Cr

Receipts	Amt (Rs.)	Payments	Amt (Rs.)
To Cash at Bank	15,000	By Salaries	3,000
To Subscriptions	63,000	By Printing and Stationery	1,500
To Annual Day Receipts	32,160	By Annual Day Expenses	3,000
To Mushaira Receipts	26,400	By Telephone Charges	3,000
To Dividend Receipts	2,400	By Sundry Expenses	2,400
		By Investments in Shares	90,000
		By Postage and Telegrams	2,700
		By Building Maintenance	7,200
		By Rent of Theatre	12,000
		By Cash at Bank	14,160
	1,38,960		1,38,960

Additional Information

(i) On 1st April, 2017, buildings stood in the books at Rs. 60,000 and investments in shares at Rs. 6,000. Buildings are subject to depreciation @ 5% p.a.

(ii) There were 200 members paying subscription at the rate of Rs. 300 p.a. each. Some members have paid their annual subscription in advance during the year.

(iii) As on 1st April, 2017, no subscription had been received in advance but subscriptions were outstanding to the extent of Rs. 1,200 as at 31st March, 2017. Subscription accrued as on 31st March, 2018 was Rs. 1,800.

(iv) Postage stamps worth Rs. 300 were in stock with secretary as on 1st April, 2017and as on 31st March, 2018, they were valued at Rs. 180.

(v) Telephone charges paid in advance were Rs. 360.

You are required to prepare the income and expenditure account for the year ended on 31st March, 2018 and the balance sheet as at that date.

Answer:

Income and expenditure account (Surplus) = Rs. 83,400 and total of balance sheet (2018)              = Rs. 1,69,500 Capital fund = Rs. 82,500