Question

Given Below is the Receipts and Payments Account of a Mayur Club for the year ended 31st March, 2018:

Prepare club’s Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking the following information into account: 

(i) There are 500 members, each paying an annual subscription of Rs. 500, Rs. 5,000 are still in arrears for the year ended 31st March, 2017. 

(ii) Municipal Taxes amounted to Rs. 4,000 per year is paid up to 30th June and Rs.5,000 are outstanding of salaries. 

(iii) Building stands in the books at Rs. 5,00,000. 

(iv) 6% interest has accrued on investments for five months.

Answer 1

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

Dr.			Cr.
Expenditure		Amount (Rs)	Income		Amount (Rs)
Municipal Taxes	4,000		Subscription (500 members × Rs 500)		2,50,000
Add: Prepaid in 2016-17	1,000		Interest Accrued on Investment 2,00,000×6100×512		5,000
Less: Prepaid in 2017-18	1,000	4,000	Profit from Drama:
Salaries	60,000		Proceeds	95,000
Add: Outstanding	5,000	65,000	Less: Drama Expenses	45,000	50,000
Expenses		7,500	Sale of Waste Paper		4,500
Newspapers		15,000	Donations		54,000
Charity		35,000
Electricity Charges		14,500
Surplus (Balancing Figure)		2,22,500
		3,63,500			3,63,500

Balance Sheet
as on April 01, 2017

Liabilities	Amount (Rs)	Assets	Amount (Rs)
		Subscriptions Outstanding (4,000 + 5,000)	9,000
Capital Fund (Balancing Figure)	6,12,500	Municipal Taxes Prepaid	1,000
		Building	5,00,000
		Cash and Bank	1,02,500
	6,12,500		6,12,500

Balance Sheet
as on March 31, 2018

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Advance Subscription		6,000	Subscriptions Outstanding
Salaries Outstanding		5,000	For 2015-16 (2,50,000 – 2,05,000)	45,000
			For 2014-15	5,000	50,000
Capital Fund	6,12,500		Prepaid Municipal Taxes		1,000
Add: Surplus	2,22,500	8,35,000	Building		5,00,000
			Investments	2,00,000
			Add: Accrued Interest	5,000	2,05,000
			Cash at Bank		90,000
		8,46,000			8,46,000

Answer 2

Balance Sheet as on 31st March 218