How will you deal with the following items while preparing for the Bombay Women Cricket Club its income and expenditure account for the year ending 31.3.2007 and its Balance Sheet as on 31.3.2007:
Rs
(a)
Donation received during the year for the construction of a permanent Pavilion
12,25,000
Expenditure incurred up to 31.3.2007 on its construction
10,80,000
The total estimated expenditure on construction of Pavilion being
25,00,000
(b)
Tournament Fund:
Balance as on 1.4.2006
10,700
Subscriptions for tournament received during the year
65,800
Expenditure incurred during the year on conducting tournaments
72,400
(c)
Life Membership fee received during the year
28,000
Give reasons for your answers
(a)
|
Books of Bombay Women Cricket Club Balance Sheet as on March 31, 2007 |
||||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Donation for Pavilion |
12,25,000 |
|
Construction of Pavilion in Progress |
10,80,000 |
|
Less: Exp. On construction of Pavilion |
(10,80,000) |
1,45,000 |
|
|
|
|
|
|
|
|
|
Capital |
|
|
|
|
|
Add: Pavilion Construction |
10,80,000 |
10,80,000 |
|
|
|
|
|
|
|
|
Reason
Donation for construction of Pavilion is a donation for specific purpose.
Expenses on construction on Pavilion is a capital expenditure.
(b)
|
Balance Sheet as on March 31, 2007 |
||||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Tournament Fund |
10,700 |
|
|
|
|
Add: Subscription for Tournament |
65,800 |
|
|
|
|
76,500 |
|
|
|
|
|
Less: Tournament Expenses |
(72,400) |
4,100 |
|
|
|
|
|
|
|
|
Reason
All funds received are treated as capital receipts and expenses related to any fund are deduced from the concerned funds.
(c)
|
Balance Sheet as on March 31, 2007 |
|||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Life Membership Fees |
28,000 |
|
|
|
|
|
|
|
Reason
Life Membership Fees are considered as capital receipts and are shown on the Liabilities side of the Balance Sheet, if nothing is specified about its treatment. But if it is to be treated as revenue item, then it is shown on the credit side of the Income and Expenditure Account.