question_answer
Following is the receipts and payments account of Star Club for the year ending 31st March, 2018. Receipts and Payments Account Dr for the year ending 31st March, 2018 Cr Receipts | Amt (Rs.) | Payments | Amt (Rs.) |
To Balance b/d | 984 | By Salaries | 4,992 |
To Subscriptions | 7,280 | By Stationary | 456 |
(including Rs. 160 for 2016-17 and Rs. 240 for 2018-19) | | By Meeting Expenses | 720 |
To Interest on Investments | 3,240 | By Books | 1,600 |
To Sale of Machinery | 480 | By Balance c/d | 2,616 |
(Book value Rs. 400) | | | |
| 11,984 | | 11,984 |
Additional Information (i) On 1st April, 2017 the club had investments Rs. 64,000, machinery Rs. 4,800, Books Rs. 8,000. |
(ii) Salary outstanding 31st March, 2017 Rs. 416 and 31st March, 2018 Rs. 528 |
Prepare income and expenditure account for the year ending 31st March, 2018 and a balance sheet as on that date.
Answer:
Income and Expenditure Account Dr for the year ending 31st March, 2018 Cr Expenditure | | Amt (Rs.) | Income | | Amt (Rs.) |
To Salaries | 4,992 | | By Subscription | 7,280 | |
(+) Outstanding for Current year | (528) | | (-) Subscription Outstanding for Previous Year | (160) | |
| 5,520 | | | 7,120 | |
(-) Outstanding for Previous Year | (416) | 5,104 | (-) Advance Subscription for Next year | (240) | 6,880 |
To Stationery | | 456 | By Interest on Investment | | 3,240 |
To Meeting Expenses | | 720 | By Profit on Sale of Machinery | | 80 |
To Surplus i.e. Excess of | | | | | |
Income over Expenditure | | 3,920 | | | |
| | 10,200 | | | 10,200 |
Balance Sheet as at 31st March, 2018 Liabilities | | Amt (Rs.) | Assets | | Amt (Rs.) |
Advance Subscription | | 240 | Cash | | 2,616 |
Outstanding Salary | | 528 | Books | 8,000 | |
Capital Fund | 77,528 | | (+) Purchase | 1,600 | 9,600 |
(+) Surplus | 3,920 | 81,448 | Investments | 64,000 | |
| | | (+) Purchase | 1,600 | 65,600 |
| | | Machinery | 4,800 | |
| | | (-) Sold | (400) | 4,400 |
| | 82,216 | | | 82,216 |
Balance Sheet as at 31st March, 2017 Liabilities | Amt (Rs.) | Assets | Amt (Rs.) |
Outstanding Salary | 416 | Cash | 984 |
Capital Fund (Balancing figure) | 77,528 | Outstanding Subscription | 160 |
| | Investments | 64,000 |
| | Machinery | 4,800 |
| | Books | 8,000 |
| 77,944 | | 77,944 |