Question

Following is the Receipt and Payment Account of G-Men’s Club for the year ending 31 March 2003 :

G-Men’s Club 

Receipts and Payments Account for the 

year ended 31st March 2003

Receipt	Amount	Payment	Amount
To Balance b/d	5000	By Salaries	1200
Subscription	7500	Rent	1400
Donations	1500	Postage and telegram	650
Entrance fees	2500	Sundry expenses	850
		Stationery	210
		Entertainment expenses	340
		investment	6000
		Cash at bank	5000
		Cash in hand	850
	16500		16500

You are required to prepare an Income and Expenditure and Balance Sheet as on the above date after making the following adjustment: 

a) Subscription outstanding during the year 2003 Rs. 700. Subscription received include Rs. 400 for the year 2002 and received in advance for the year2004 amounting Rs. 800. 

b) Rent paid in advance Rs. 200. 

c) 1/3 of the donation and 40% of the entrance fee should be capitalised. 

d) On 1st April 2002 the club had sports equipment worth Rs. 4,000 and furniture Rs. 2,000. 

e) Salaries unpaid on 1st April 2002 Rs. 200 and 31st March 2003 Rs. 300. 

f) Stock of stationery on 31st March 2003 Rs. 60.

Answer 1

Balance sheet as on 1/04/2002

Liabilities	Amount	Assets	Amount
Outstanding salary	200	Cash	5000
Capital Fund (Balancing figure)	11200	sports equipment	4000
		Furniture	2000
		Subscription outstanding	400
	11400		11400

Income and Expenditure Account for the year ended 31.03.2003