The following is the Receipts and payments Account of Modern Sports Club, Satara, for the year ended on 31st March, 2007. (March 2009)

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

Receipts	Amount	Payments	Amount
To Balance b/d	1490	By Upkeep of Garden	9500
To Subscription	13600	By Wages	2360
To Entrance Fees	520	By Salary	7000
To Interest on Investments	840	By Ground Rent	210
To Proceeds from Matches	5180	By Printing	930
To Life Member Fees	5000	By Postage	190
		By Bank Balance	5000
		By Balance C/d	1440
	26630		26630

Adjustments:

1.     Ledger balances of the club as on 31.3.2006 were

Capital fund Rs. 66,430, Club house and ground Rs. 40,000, Investments Rs. 18,640, furniture Rs. 6,400, and outstanding subscription Rs. 600.

2.    Printing includes Rs. 200, Upkeep of garden includes Rs. 500 and Subscription includes Rs. 400 for the previous year.

3.    Entrance fees are to be capitalized.

4.    The Rotary club of Satara owed Rs. 210 for the use of club hall.

5.    Provide 10% depreciation on furniture.

6.    Subscriptions outstanding for the current year were Rs. 1,000.

Prepare _

Income and Expenditure account for the year ended 31^st March, 2007 and Balance Sheet as on that date.

Solution: In the books of Modern Sports Club, Satara

Income and Expenditure A/c for the year ended 31.03.07

Expenditure	Amount	Amount	Income	Amount	Amount
To Upkeep of Garden	9500		By Subscription	13600
(-) Last year Amount	(500)	9000	(-) Last year Amount	(400)
To Wages		2360		13200
To Salary		7000	(+) Outstanding of Current Year	1000	14200
To Ground rent		210	By Entrance Fees	520
To Printing	930		(-) Capitalised	-520	NIL
(-) Last Year Amount	-200	730	By Interest on Investment		840
To Postage		190	By Proceeds from Matches		5180
To Depreciation on Furniture		640	By Amount receivable from Rotary Club, Satara		210
To Surplus [Income over Expenditure]		300
		20430			20430

Balance Sheet as on 31.03.07

Liability	Amount	Amount	Asset	Amount	Amount
Capital Fund	66430		Bank Balance		5000
(+) Entrance Fees	520		Cash Balance		1440
	66950		Ground & Club House		40000
(+) Surplus	300	67250	Investments		18640
			Furniture	6400
Life Membership Fees		5000	(-) Depreciation	-640	5760
			Outstanding Subscription of Last Year [600 – 400]		200
			Amount Receivable from Rotary club of Satara for the use of Club hall		210
			Outstanding Subscription of Current year		1000
		72250			72250