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
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
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) 
 

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