Question

Following is the summary of cash transactions of the Royal Club for the year ended 31st March, 2018:

In the beginning of the year, the club possessed Books of Rs. 2,00,000 and Furniture of Rs. 85,000. Subscriptions in arrears in the beginning of the year amounted to Rs. 3,500 and at the end of the year Rs. 4,500 and six months Rent Rs 6,000 was due both in the beginning of the year and at the end of the year. Prepare Income and Expenditure Account of the club for the year ended 31st March, 2018 and ist Balance Sheet as at that date after writing off Rs. 5,000 and Rs. 11,300 on Furniture and books respectively. 

Answer 1

Books of Royal Club
Income and Expenditure Account
for the year ended March 31, 2018

Dr.				Cr.
Expenditure			Amount (Rs)	Income		Amount (Rs)
Rent		16,800		Entrance Fees		25,500
Less: Outstanding Rent in the beginning		6,000		Subscriptions	1,60,000
Add: Outstanding Rent at the end		6,000	16,800	Less: Outstanding in the beginning	3,500
Wages			24,500	Add: Outstanding at the end	4,500	1,61,000
Lighting Charge			7,200	Donations		16,500
Lecturer’s Fee			43,500	Profit on Entertainment		5,600
Office Expenses			45,000	Interest Accrued on Fixed Deposits		1,200
Depreciation on:				(80,000 × 3% × 6/12)
Books		11,300
Furniture		5,000	16,300
Surplus (Balancing Figure)			56,500
			2,09,800			2,09,800

Balance Sheet
as on April 01, 2017

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Outstanding Rent	6,000	Books	2,00,000
Capital Fund (Balancing Figure)	3,14,400	Furniture	85,000
		Subscriptions Outstanding	3,500
		Cash and Bank	31,900
	3,20,400		3,20,400

Balance Sheet
as on March 31, 2018

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Outstanding Rent		6,000	Subscriptions Outstanding		4,500
Capital Fund	3,14,400		Books	2,00,000
Add: Life Membership Fees	25,000		Add: Purchases	21,300
Add: Surplus	56,500	3,95,900	Less: Deprecation	11,300	2,10,000
			Furniture	85,000
			Less: Depreciation	5,000	80,000
			Fixed Deposits	80,000
			Add: Accrued interest	1,200	81,200
			Cash at Bank		24,200
			Cash in Hand		2,000
		4,01,900			4,01,900

Answer 2

Balance Sheet as on 01st April 2017