The Balance Sheet as at 1st April, 2006 and the Receipts and Payments account for the year ended 31st March, 2007 of the Young Sports Club, Dadar are as under.

Young Sports Club – Balance Sheet as on 1^st April, 2006

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital Fund		30000	Building		9500
Outstanding Expenses			Furniture		5000
Salaries	400		Entrance Fee Receivable		200
Printing	300	700	Subscriptions Fee receivable		800
Income and Expenditure A/c		23300	Sports Material & Equipments		28000
			Cash in Hand		4200
			Cash at Bank		6300
		54000			54000

Young Sports Club, Dadar, Receipts and Payments A/c for the year ending 31^st March, 2007

Receipts	Rs.	Payments	Rs.
To Opening Balance		By Cricket Tournament Expenditure	16460
Cash in Hand           4200		By Printing & Stationery	860
Cash in Hand           6300	10500	By Salaries and Honorarium	1600
To Subscriptions	18000	By Repairs to Building	500
To Receipts from Cricket Tournament	14520	By Newspapers and Periodicals	470
To Entrance Fees	4000	By Advertising Expenses	300
To Interest on Bank A/c	300	By Insurance	400
		By Investments	15000
		By Closing Balance
		Cash in Hand        5280
		Cash at Bank        6450	11730
	47320		47320

You are also given the following additional information.

1. Subscriptions of the amount of Rs. 800 were receivable as on 31^st March, 2007
2. Subscriptions Rs. 200 and Entrance Fees Rs. 300 were received in advance.
3. Outstanding Expenses were: Salaries and Honorarium Rs. 100; Insurance Rs. 50; Cricket Tournament Expenses Rs. 250.

You are required to prepare Income & Expenditure account for the year ending 31^st March, 2007 and a Balance Sheet as on that date.

Solution: In the books of Young Sports Club, Dadar

Income and Expenditure A/c for the year ended 31.03.07

Expenditure	Amount	Amount	Income	Amount	Amount
To Cricket Tournament Expenditure	16460		By Subscription	18000
(+) Outstanding	250	16710	(-) Last Year Amount	-800
To Printing & Stationery	860			17200
(-) Last Year Amount	-300	560	(-) Next Year Amount Received in Advance	-200
To Salaries & Honorarium	1600			17000
(-) Last Year Amount	-400		(+) Outstanding of Current Year	800	17800
	1200		By Receipts from Cricket tournament		14520
(+) Outstanding of Current Year	100	1300	By Entrance Fees	4000
To Repairs to Buildings		500	(-) Last year Amount	-200
To Newspapers and Periodicals		470		3800
To Advertising Expenses		300	(-) Next Year Amount Received in Advance	-300	3500
To Insurances	400		By Interest on Bank A/c		300
(+) Outstanding	50	450
To Surplus [Income Over Expenditure]		15830
		36120			36120

Balance Sheet as on 31.03.07

Liability	Amount	Amount	Asset	Amount	Amount
Capital Fund	30000		Investments		15000
(+) Surplus of Last year	23300		Cash in Hand		5280
	53300		Cash at Bank		6450
(+) Surplus	15830	69130	Building		9500
			Furniture		5000
Advance Subscription of Next Year		200	Sports Materials & Equipments		28000
Advance Entrance fees of Next Year		300	Outstanding Subscription of Current year		800
Outstanding Expenses
Salaries & Honorarium	100
Insurance	50
Cricket Tournament Expenses	250	400
		70030			70030