Receipt and Payment Account of Shankar Sports club is given below, for the year ended December 31, 2006

Receipt and Payment Account 

for the year ending December 31, 2006

Receipts

Amount

Rs

Payments

Amount

Rs

Opening Cash in hand

2,600

Rent

18,000

Entrance fees

3,200

Wages

7,000

Donation for building

23,000

Billiard table

 14,000

Locker rent

 1,200

Furniture

 10,000

Life membership fee

7,000

Interest

 2,000

Profit from entertainment

3,000

Postage

1,000

Subscription

40,000

Salary

24,000

Cash in hand

4,000

 

 

 

80,000

 

 80,000

 

 

 

 

Prepare Income and Expenditure Account and Balance Sheet with help of following Information:

Subscription outstanding on 31st December 2005 is Rs 1, 200 and Rs 2,300 on 31.12.2006, opening stock of postage stamps is Rs 300 and closing stock is Rs 200, Rent Rs 1,500 related to 2005 and Rs 1,500 is still unpaid.

On January 1, 2006 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500

On 31.12.2006. The club took a loan of Rs 20,000 (@ 10% p.a.) in 2005.

Books of Shankar Sports Club

Income and Expenditure Account 

as on 31 Dec. 2006

Dr.

 

 

Cr.

Expenditure

Amount

Rs

Income

Amount

Rs

Rent

18,000

 

Entrance Fees

3,200

Add: Outstanding for 2006

1,500

 

Locker Rent

1,200

 

19,500

 

Profit from Entertainment

3,000

Less: Outstanding for 2005

(1,500)

18,000

 

 

 

 

Subscription

40,000

 

Wages

7,000

Less: Outstanding for 2005

(1,200)

 

Depreciation on Furniture

2,500

 

38,800

 

Interest

2,000

Add: Outstanding for 2006

2,300

41,100

Postage

1,000

 

Deficit (Balancing Figure)

6,100

Add: Opening Stock

300

 

 

 

 

1,300

 

 

 

Less: Closing Stock

(200)

1,100

 

 

Salaries

24,000

 

 

 

 

 

 

 

54,600

 

54,600

 

 

 

 

 

Balance Sheet 

as on  December 31, 2005

Liabilities

Amount

Rs

Assets

Amount

Rs

Rent Outstanding

1,500

Cash in Hand

2,600

10%  Loan

20,000

Subscription Outstanding

1,200

 

 

Furniture

15,000

 

 

Stock of Postage Stamps

300

 

 

Capital fund Deficit (Balancing figure)

2,400

 

 

 

 

 

21,500

 

21,500

 

 

 

 

 

Balance Sheet 

as on December 31, 2006

Expenditure

Amount

Rs

Income

Amount

Rs

Rent Outstanding

1,500

Subscription Outstanding

2,300

10%  Loan

20,000

Stock of Postage Stamps

200

Donation for Building

23,000

Billiard Table

14,000

Capital Fund

(2,400)

 

Furniture

15,000

 

Add: Life Membership Fee

7,000

 

Add: Purchases

10,000

 

Less: Deficit

(6,100)

 

 

 

25,000

 

 

 

Less: Depreciation

(2,500)

22,500

 

 

Cash in Hand

4,000

 

 

** Capital Fund (Deficit)

1500

 

44,500

 

44,500

 

 

 

 

             

NOTE 1: As per the solution, Deficit is Rs 6,100 and the total of the Balance Sheet as on Dec. 31, 2006 is Rs 44,500. However, as per the book, Deficit is Rs 8,100 and the total of the Balance Sheet as on Dec. 31, 2006 is Rs 53,500.

** NOTE 2:

Capital Fund

(2,400)

 

Add:

Life Membership Fees

7,000

 

Less:

Deficit

(6,100)

 

 

Net Deficit

(1,500)

 

 

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