From the followingReceipt and Payment Account prepare final accounts of a Unity Clubfor the year ended March 31, 2007.
| Receipt and Payment Accounts for the year ending March 31, 2007 | ||||
| Receipts | Amount Rs | Payments | Amount Rs | |
| Balance b/d | 15,000 | Furniture | 18,000 | |
| Sale of Old furniture (costing Rs 6,000) | 4,000 | Library books | 10,000 | |
| Subscriptions: | Salaries | 72,000 | ||
| 2005−06 | 18,000 | General expenses | 18,000 | |
| 2006−07 | 60,000 | Electric charges | 12,000 | |
| 2007−08 | 2,000 | 90,000 | Newspapers | 33,800 |
| Sale of old newspapers | 10,800 | Postage | 3,000 | |
| Profit from entertainment | 44,000 | Stationery | 40,000 | |
| Rent | 84,000 | Audit fee | 8,000 | |
| Balance c/d | 33,000 | |||
| 2,47,800 | 2,47,800 | |||
| Balance Sheet as on March 31, 2006 | |||
| Liabilities | Amount Rs | Assets | Amount Rs |
| Outstanding Salary | 6,000 | Cash | 15,000 |
| Capital Fund | 6,94,000 | Outstanding subscription | 18,000 |
| Library Books | 30,000 | ||
| Furniture | 37,000 | ||
| Land and Building | 6,00,000 | ||
| 7,00,000 | 7,00,000 | ||
AdditionalInformation:
| 1. | The Club had 500 members each paying an annual subscription of Rs 150. |
| 2. | On 31.3.2007 salaries outstanding amounted to Rs 1,200 and salaries paid included Rs 6,000 for the year 2005−06. |
| 3. | Provide 5% depreciation on Land and Building. |
| Books of Unity Club Income and Expenditure Account as on March 31, 2007 | ||||||
| Dr. | Cr. | |||||
| Expenditure | Amount Rs | Income | Amount Rs | |||
| Loss on Sale of Old Furniture (4,000 − 6,000) | 2,000 | Subscription | ||||
| 500 members at Rs 150 each | 75,000 | |||||
| Salaries | 72,000 | Sale of Old Newspapers | 10,800 | |||
| Add: Outstanding for 2006−07 | 1,200 | Profit from Entertainment | 44,000 | |||
| 73,200 | Rent | 84,000 | ||||
| Less: Outstanding for 2005−06 | (6,000) | 67,200 | ||||
| General Expenses | 18,000 | Deficit (Balancing figure) | 200 | |||
| Electric Charges | 12,000 | |||||
| Newspapers | 33,800 | |||||
| Postage | 3,000 | |||||
| Stationery | 40,000 | |||||
| Audit Fees | 8,000 | |||||
| Depreciation on Land and Building | 30,000 | |||||
| 2,14,000 | 2,14,000 | |||||
| Balance Sheet as on 31 March 2007 | |||||
| Liabilities | Amount Rs | Assets | Amount Rs | ||
| Advance Subscription (for 2007−08) | 12,000 | Subscription Outstanding | 15,000 | ||
| Salaries Outstanding | 1,200 | Furniture | 37,000 | ||
| Capital Fund | 6,94,000 | Add: Purchases | 18,000 | ||
| Less: Deficit | (200) | 6,93,800 | 55,000 | ||
| Less: Sales | (6,000) | 49,000 | |||
| Library Books | 30,000 | ||||
| Add: Purchases | 10,000 | 40,000 | |||
| Land and Building | 6,00,000 | ||||
| Less: 5% Depreciation | (30,000) | 5,70,000 | |||
| Cash and Bank | 33,000 | ||||
| 7,07,000 | 7,07,000 | ||||
Note: As per thesolution, Deficit is Rs 200 and the total of the Balance Sheet ason March 31, 2007 is Rs 7,07,000. However, the Surplus givenin the book is Rs 14,000 and the total of the Balance Sheet as onMarch 31, 2007 is Rs7,27,000