VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April 2020.
Land was donated by his grandfather worth Rs. 10,00,000 as per his will. His father Shankar donated Rs.5,00,000 for the construction and running the academy. He spent Rs.3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid yearly subscription of Rs.1200 each. 10 players paid in advance for the next year 2021 -22. Vijayashankar appointed well experienced coach for them, the coach fee amounted to Rs. 1,20,000 p.a.
The maintenance expenses amounted to Rs.75,000. Bats and balls purchased during the year amounted to Rs.15,000. Closing stock of bats and ball amount to Rs.1000.
Based on the above information you are required to answer the following question.
1. What is the Primary source of income for the academy?
2. The amount of subscription to be credited to income and expenditure account-----------
3. How will you treat the land donated by his grandfather?
4. The liability towards advance subscription amounted to:
(a) Rs. 12,000
(b) Rs.24,000
(c) Rs.1,200
(d) Rs.1,20,000
5. The amount of subscription received as per Receipts and payments Account of Star cricket club is:
(a) Rs.2,52,000
(b) Rs.2,40,000
(c) Rs.2,50,000
(d) None of the above
6. What amount should be charged to the Income and Expenditure account for bats and balls consumed during the year?
(a) Rs.15,000
(b) Rs.16,000
(c) Rs.14,000
(d) Rs.13,500
