From the following Receipts and Payments Accounts of Sangameshwar Sports Club for the year ending 31st March, 2007 and Balance Sheet as on that date. (September 2010)

Receipts and Payments Account For the year ended on 31^st March, 2007.

Receipts	Amount	Payments	Amount
To Balance (1-4-06)		By Salaries	40000
Cash in Hand	15000	By Wages	40000
Cash at Bank	215000	By Postage and Telegram	15000
To Subscriptions	125000	By Printing & Stationery	25000
To Donations	225000	By Hire of Ground	15000
To Entrance Fees	125000	By Sports Material [Purchased on 1-1-07]	200000
To Interest	15000	By Insurance	50000
To Miscellaneous Receipts	15000	BY Balance (31.03.07)
		Cash in Hand	10000
		Cash at Bank	340000
	735000		735000

Adjustment

i.             Subscriptions include Rs. 2000 received for the year 2005 – 2006 and subscription of Rs. 5000 is due to for current year but not received yet.

ii.            Assets as on 1^st April, 2006 were as follows.

a.    Building Rs. 300000

b.    Sports Material Rs. 250000

c.    Investments Rs. 150000

d.    Furniture Rs. 150000.

iii.          Provide depreciation on Building, Sports Material and Furniture at 5% p.a.

iv.           Capitalise 50 % of Donations and Entrance Fees.

v.            Insurance of Rs. 5000 is paid in advance.

vi.           Salaries are outstanding at Rs. 5000 and Interest Rs. 5000 is due but not received.

vii.         Capital fund was Rs. 10,82,000 as  on 1-4-2006.

Solution: In the books of Sangameshwar Sports Club,

Income and Expenditure A/c for the year ended 31.03.07

Expenditure	Amount	Amount	Income	Amount	Amount
To Salaries	40000		By Subscription	125000
(+) Outstanding	5000	45000	(-) Last Year Amount	(2000)
To Wages		40000		123000
To Postage & Telegram		15000	(+) Outstanding	5000	128000
To Printing & Stationary		25000	By Donations	225000
To Hire of Ground		15000	(-) Capitalized	(112500)	112500
To Insurance	50000		By Entrance Fees	125000
(-) Prepaid	(5000)	45000	(-) Capitalized	(62500)	62500
To Depreciation			By Interest	15000
Sports Material	15000		(+) Outstanding	5000	20000
Building	15000		By Miscellaneous Receipts		15000
Furniture	7500	37500
To Surplus [Income over Expenditure]		115500
		338000			338000

Balance Sheet as on 31.03.07

Liability	Amount	Amount	Asset	Amount	Amount
Capital Fund	1082000		Sports materials	450000
(+) Donations	112500		(-) Depreciation	-15000	435000
	1194500		Cash in Hand		10000
(+) Entrance Fees	62500		Cash at Bank		340000
	1257000		Outstanding Subscription for Current year		5000
(+) Surplus	115500	1372500	Building	300000
Outstanding Salary		5000	(-) Depreciation	-15000	285000
			Investment		150000
			Furniture	150000
			(-) Depreciation	-7500	142500
			Prepaid Insurance		5000
			Outstanding Interest		5000
		1377500			1377500