From the following Receipts and payments account of Western Gymkhana 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. (March 2008, modified)
Receipts
|
Amount
|
Payments
|
Amount
|
To Balance B/f
|
1040
|
By Salaries
|
1300
|
To Subscriptions for :
|
By Entertainment Expenses
|
645
|
|
2006
|
85
|
By Electric Charges
|
234
|
2007
|
4000
|
By General Expenses
|
350
|
2008
|
103
|
By Rates & Taxes
|
120
|
To Donations
|
1200
|
By Investments
|
3000
|
To Entertainment Receipts
|
876
|
By Stationery &
Printing
|
241
|
To Interest
|
81
|
By Expenses of 2006
|
600
|
To Entrance Fees
|
1000
|
By Fixed Deposit
|
1000
|
By Balance C/f
|
895
|
||
8385
|
8385
|
i.
The Gymkhana has 450 members paying an annual subscription of Rs. 10/-
each.
ii.
Rs. 20/- is still in arrears towards subscription for the year 2006.
iii.
Carry forward Rs. 20/- for rates paid in advance.
iv.
Provide Rs. 200/- for salaries outstanding.
v.
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.
vi.
The Capital Fund as on 1st April, 2006 was Rs. 16,695/-
vii.
50% of the Entrance Fees is to be capitalised. Donations are capitalised.
Solution: In the books of Western Gymkhana
Income and Expenditure A/c for the year ended 31.03.07
Expenditure
|
Amount
|
Amount
|
Income
|
Amount
|
Amount
|
To
Salaries
|
1300
|
By
Subscription
|
4000
|
||
(+)
Outstanding
|
200
|
1500
|
(+)
Outstanding
|
500
|
4500
|
To
Entertainment Expenses
|
645
|
By
Donations
|
1200
|
||
to
Electric Charges
|
234
|
(-)
Capitalized
|
-1200
|
NIL
|
|
To
General Expenses
|
350
|
By
Entertainment Receipts
|
876
|
||
To
Rates & Taxes
|
120
|
By
Interest
|
81
|
||
(-)
Prepaid
|
-20
|
100
|
By
Entrance Fees
|
1000
|
|
To
Stationery & Printing
|
241
|
(-)
Capitalized
|
-500
|
500
|
|
To
Depreciation
|
|||||
Land
& Building
|
750
|
||||
Furniture
|
230
|
980
|
|||
To
Surplus
[Income
Over Expenditure]
|
1907
|
||||
5957
|
5957
|
Balance Sheet as on 31.03.07
Liability
|
Amount
|
Amount
|
Asset
|
Amount
|
Amount
|
Capital
Fund
|
16695
|
Outstanding
Subscription of current year
|
500
|
||
(+)
Entrance Fees
|
500
|
Outstanding
Subscription of Last Year
|
20
|
||
17195
|
Investments
|
3000
|
|||
(+)
Donations
|
1200
|
Fixed
Deposits
|
1000
|
||
18395
|
Cash
Balance
|
895
|
|||
(+)
Surplus
|
1907
|
20302
|
Prepaid
Rates
|
20
|
|
Advance
Subscription of Next Year
|
103
|
Land
& Building
|
15000
|
||
O/S
Salaries
|
200
|
(-)
Depreciation
|
-750
|
14250
|
|
Furniture
|
1150
|
||||
(-)
Depreciation
|
-230
|
920
|
|||
20605
|
20605
|