Question

From the following Receipts and Payments Account of Mumbai Theatre Club, prepare Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheet as at that date.

Additional information: 

(i) Subscriptions in arrear for the year ended 31st March, 2018 – Rs. 9,000 and subscriptions in advance for the year ended 31st March, 2019 – Rs. 3,500. 

(ii) Insurance Premium outstanding Rs. 400. 

(iii) Miscellaneous expenses prepaid Rs. 900. 

(iv) 8% interest has accured on investment for five months. 

(v) Billiard Table costing Rs. 3,00,000 was purchased during last year and Rs. 2,20,000 were paid for it.

Answer 1

Income and Expenditure Account
for the year ended March 31, 2018

Dr.			Cr.
Expenditure		Amount (Rs)	Income			Amount (Rs)
Salary		20,000	Subscriptions	1,20,000
Repair Expenses		5,000	Add: Outstanding	9,000
Miscellaneous Expenses	5,000		Less: Advance	3,500		1,25,500
Less: Prepaid	900	4,100	Entrance Fees			10,000
Insurance Premium	2,000		Interest on Investments	1,000
Add: Outstanding	400	2,400	Add: Accrued interest (60,000 × 8% × 5/12)	2,000		3,000
Paper, Ink, etc.		1,500	Donation			50,000
Surplus (Balancing Figure)		1,66,500
			Interest received from Bank			4,000
			Sale of Old Newspapers			1,500
			Receipts from Sale of Drama Tickets		10,500
			Less: Drama Expenses		5,000	5,500
		1,99,500				1,99,500

Balance Sheet
as on April 01, 2017

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors for Billiard Table	80,000	Billiard Table	3,00,000
		Cash in hand	40,000
Capital Fund (Balancing Figure)	3,60,000	Cash at bank	1,00,000
	4,40,000		4,40,000

Answer 2

Balance Sheet as on 01^st March 2018

Answer 3

Balance Sheet
as on March 31, 2018

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Advance Subscriptions		3,500	Subscriptions Outstanding		9,000
Insurance Premium Outstanding		400	Prepaid Miscellaneous Expenses		900
Capital Fund	3,60,000		Investments	60,000
Add: Surplus	1,66,500	5,26,500	Add: Accrued Interest	2,000	62,000
			Billiard Table		3,00,000
			Furniture		60,000
			Cash in hand		26,500
			Cash at bank		72,000
		5,30,400			5,30,400