From the following Receipts and payments account of Omtex Sports Club, Dadar for the year ended 31st March, 2007 and other information, prepare Income and Expenditure account for the year ended on and a Balance Sheet as at that date.


Receipts
Amount
Payments
Amount
To Balance B/f
1040
By Salaries
2100
To Subscriptions for :

By Entertainment Expenses
45
2006
85
By Electric Charges
234
2007
3000
By General Expenses
350
2008
103
By Rates & Taxes
120
To Donations
2200
By Investments
900
To Entertainment Receipts
76
By Stationery & Printing
241
To Interest
981
By Expenses of 2006
600
To Entrance Fees
900
By Fixed Deposit
2900


By Balance C/f
895

8385

8385


The Gymkhana has 450 members paying an annual subscription of Rs. 15/- each.
Rs. 20/- is still in arrears towards subscription for the year 2006.
Carry forward Rs. 50/- or rates paid in advance.
Provide Rs. 2000/- for salaries outstanding.
The Gymkhana owns Land and Building standing in the books of Rs. 15,000/- and Furniture standing at Rs. 1,150, on which depreciation at 5% and 20% respectively is to be written off.
The Capital Fund as on 1st April, 2006 was Rs. 16,695/-
50% of the Entrance Fees is to be capitalised. Donations are capitalised.

Solution: In the books of Omtex Sports Club, Dadar.
Income and Expenditure A/c for the year ended 31.03.07
Expenditure
Amount
Amount
Income
Amount
Amount
To Salaries
2100

By Subscription
3000

(+) Outstanding
2000
4100
(+) Outstanding
3750
6750
To Entertainment Expenses

45
By Donations
2200

To Electric Charges

234
(-) Capitalized
-2200
NIL
To General Expenses

350
By Entertainment Receipts

76
To Rates & Taxes
120

By Interest

981
(-) Prepaid
-50
70
By Entrance Fees
900

To Stationery & Printing

241
(-) Capitalized
-450
450
To Depreciation





Land & Building
750




Furniture
230
980



To Surplus
[Income Over Expenditure]

2237





8257


8257

Balance Sheet as on 31.03.07

Liability
Amount
Amount
Asset
Amount
Amount
Capital Fund
16695

Outstanding Subscription of current year

3750
(+) Entrance Fees
450

Outstanding Subscription of Last Year

20

17145

Investments

900
(+) Donations
2200

Fixed Deposits

2900

19345

Cash Balance

895
(+) Surplus
2237
21582
Prepaid Rates

50
Advance Subscription  of Next Year

103
Land & Building
15000

O/S Salaries

2000
(-) Depreciation
-750
14250



Furniture
1150




(-) Depreciation
-230
920


23685


23685