Question

The following are the Receipts and Payments Accounts of Sneha Arts and Sports Club for 31^st December, 2011.

Receipts and Payments Accounts for 31^st December, 2011.

Additional information: 

a) The Club has 500 members, each paying an annual subscription of Rs. 5.

b) On 31^st December, 2011, salaries outstanding amounted to Rs. 50 and municipal taxes amounting to Rs. 40 per annum have been paid up to 31^st March, 2012. 

c) On 31^st December, 2011, the club owned sports equipment valued at Rs. 2,500; furniture worth Rs. 1,500 and musical instruments worth Rs. 1,000. 

d) Provide depreciation on sports equipment at 10% p.a.

You are required to prepare the income and expenditure account for the year ending 31^st December, 2011 and the Balance Sheet as on that date.

Answer 1

Income and Expenditure Account for the year ended 31-12-2011.

Balance Sheet as on 31/12/2010

Balance Sheet as on 31/12/2011

Balance Sheet as on 31/12/2011

Note: 

Subscription for 2011 Subscription received – 2050 

Add: Outstanding [(500 x 5 = 2500) – 2050] – 450/2500