From the following receipts and payments account of Ludhiana Amusement Club for the year ending 31st December, 2011 and the Sub-jointed information, prepare income and expenditure account for the year ended 31st December, 2011 and a Balance Sheet as on that date.
RECEIPTS:-
cash in hand 825
subscription:
for 2010 200
for 2011 8350
for 2012 150
tournament fund 5500
proceeds of drama tickets 12000
sale of waste paper 35
endowment fund receipts 15000
legacies 9000
total 51060
PAYMENTS:-
bank overdraft(1-1-2011) 3800
salaries 2750
drama expenses 7000
sports materials 6000
tournament expenses 4000
municipal taxes 300
upkeep of land 500
office expenses 1500
advance against construction of bulding 10000
balance on 31-12-2011:
cash in hand 3710
cash at bank 11500
total 51060
additional information:
1. The Club has 180 members each paying an annual subscription of Rs.50. In 2010, five members had paid their subscription for 2011 as well.
2. Municipal taxes amounting to Rs.300 per annum have been paid up to 31st March, 2012.
3. Balance of sports material on 31st December, 2011 was Rs.2800.
4. The Club had buldings amounting to Rs.40000 and Musical Instruments worth Rs.10000 on 1.1.2011.
| Income and Expenditure Account for the year ending Dec.31,2011 |
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| Dr. | Cr. | |||
| Expenditure | Amount (Rs) |
Income | Amount (Rs) | |
| Office Expenses | 1,500 | Proceeds from Drama Tickets | 12,000 | |
| Advance Paid for the Construction of Building | 10,000 | Subscription (180*50) | 9,000 | |
| Salaries | 2,750 | Sale of Waste Paper | 35 | |
| Drama Expenses | 7,000 | Endowment Fund Receipts | 15,000 | |
| Sports Material | 3,200 | |||
| Municipal Taxes | 300 | |||
| Less: Prepaid | 75 | 225 | ||
| Unkeep of Land | 500 | |||
| Surplus (Income over Expenditure) | 10,860 | |||
| 36,035 | 36,035 | |||
| Balance Sheet as on Dec. 31, 2011 |
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| Liabilities | Amount (Rs) |
Assets | Amount (Rs) | |
| Capital Fund | Cash in Hand | 3,710 | ||
| Opening Balance | 46,975 | Cash at Bank | 11,500 | |
| Add: Surplus | 10,860 | 57,835 | Sports Material | 2,800 |
| Tournament Fund | 5,500 | Prepaid Municipal Taxes | 75 | |
| Less Expenses | 4,000 | 1,500 | Building | 40,000 |
| Legacies | 9,000 | Musical instrument | 10,000 | |
| Subscription received in advance | 150 | Outstanding Subscription | 400 | |
| 68,485 | 68,485 | |||
Working Notes:
1.
| Balance Sheet as on Dec. 31, 2010 |
|||
| Liabilities | Amount (Rs) |
Assets | Amount (Rs) |
| Subscription Received Received in Advance | 250 | Musical Instrument | 10,000 |
| Bank Overdraft | 3,800 | Building | 40,000 |
| Capital Fund (balancing figure) | 46,975 | Cash in hand | 825 |
| Outstanding Subscription | 200 | ||
| 51,025 | 51,025 | ||
2. Prepaid Municipal Taxes = Rs 75 (Rs 300*3/12)
3. Subscription Outstanding at the end = Rs 400 (Rs 9,000-Rs 8350+Rs 250).
Subscription Received in advance in the Beginning = Rs 250 (Rs 50*180)