From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended December 31, 2013 and the Balance Sheet as on that date.

Receipt and Payment Account 

for the year ending December 31, 2013

Receipts

Amount

Rs

Payments

Amount

Rs

Balance b/d

 

3,500

General expenses

900

Subscription:

2012

2013

2014

 

2,000

70,000

3,000

75,000

Salary

Postage

Electricity charges

Furniture

16,000

1,300

7,800

26,500

Sale of old Books

 

2,000

Books

13,000

(Costing Rs 3,200)

 

 

Newspapers

600

Rent from use of hall

 

17,000

Meeting expenses

7,200

Sale of newspapers

 

400

T.V. set

16,000

Profit from entertainment

 

7,300

Balance c/d

15,900

 

 

 

 

 

 

 

1,05,200

 

1,05,200

 

 

 

 

 

Additional Information:

(a)

The club has 100 members each paying an annual subscription of Rs 900. Subscriptions outstanding on December 31, 2012 were Rs 3,600.

(b)

On December 31, 2013 , salary outstanding amounted to Rs 1,000, Salary paid included Rs 1,000 for the year 2012.

(c)

On January 1, 2013 the club owned land and building Rs 25,000, furniture Rs 2,600 and books Rs 6,200.

 

Income and Expenditure Account 

as on December 31, 2013

Dr.

 

 

Cr.

Expenditure

Amount

 Rs

Income

Amount

 Rs

General Expenses

900

Subscription

70,000

 

Salary

16,000

 

Add: Outstanding for 2013

20,000

90,000

Add: Outstanding for 2013

1,000

 

(100 members at Rs 900 each)

 

17,000

 

Rent from use of hall

17,000

Less: Outstanding for 2012

(1,000)

16,000

Sale of Old News Papers

400

 

 

Profit from Entertainment

7,300

Loss on Sale of Old Books

1,200

 

 

Electricity Charges

7,800

 

 

Newspapers

600

 

 

Meeting Expenses

7,200

 

 

Postage

1,300

 

 

Surplus (Balancing figure)

79,700

 

 

 

1,14,700

 

1,14,700

 

 

 

 

 

Balance Sheet as on December 31, 2012

 

Liabilities

Amount

Rs

Assets

Amount

Rs

Salary Outstanding

1,000

Subscription Outstanding

3,600

Capital Fund (Balancing figure)

39,900

Furniture

2,600

 

 

Books

6,200

 

 

Cash and Bank

3,500

 

 

Building

25,000

 

40,900

 

40,900

 

 

 

 

 

Balance Sheet 

as on December 31, 2013

Liabilities

Amount

 Rs

Assets

Amount

 Rs

Advance Subscription

3,000

Subscription Outstanding

 

Salary Outstanding

1,000

2013

20,000

 

 

 

Add: 2012 (Still Outstanding)

1,600

21,600

Capital Fund

39,900

 

Building

25,000

Add: Surplus

79,700

1,19,600

Furniture

2,600

 

 

 

Add: Purchases

26,500

29,100

 

 

 

 

 

 

Books

6,200

 

 

 

Add: Purchases

13,000

 

 

 

19,200

 

 

 

Less: Sales

3,200

16,000

 

 

T.V. Set

16,000

 

 

Cash and Bank

15,900

 

1,23,600

 

1,23,600

 

 

 

 


Note: As per the solution the total of Balance Sheet is Rs 1,23,600, however, answer provided in the book is Rs 1,23,800.

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