From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended December 31, 2013 and the Balance Sheet as on that date.
| Receipt and Payment Account for the year ending December 31, 2013 | ||||
| Receipts | Amount Rs | Payments | Amount Rs | |
| Balance b/d |
| 3,500 | General expenses | 900 |
| Subscription: 2012 2013 2014 |
2,000 70,000 3,000 | 75,000 | Salary Postage Electricity charges Furniture | 16,000 1,300 7,800 26,500 |
| Sale of old Books |
| 2,000 | Books | 13,000 |
| (Costing Rs 3,200) |
|
| Newspapers | 600 |
| Rent from use of hall |
| 17,000 | Meeting expenses | 7,200 |
| Sale of newspapers |
| 400 | T.V. set | 16,000 |
| Profit from entertainment |
| 7,300 | Balance c/d | 15,900 |
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| 1,05,200 |
| 1,05,200 |
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Additional Information:
| (a) | The club has 100 members each paying an annual subscription of Rs 900. Subscriptions outstanding on December 31, 2012 were Rs 3,600. |
| (b) | On December 31, 2013 , salary outstanding amounted to Rs 1,000, Salary paid included Rs 1,000 for the year 2012. |
| (c) | On January 1, 2013 the club owned land and building Rs 25,000, furniture Rs 2,600 and books Rs 6,200. |
| Income and Expenditure Account as on December 31, 2013 | |||||
| Dr. |
|
| Cr. | ||
| Expenditure | Amount Rs | Income | Amount Rs | ||
| General Expenses | 900 | Subscription | 70,000 |
| |
| Salary | 16,000 |
| Add: Outstanding for 2013 | 20,000 | 90,000 |
| Add: Outstanding for 2013 | 1,000 |
| (100 members at Rs 900 each) |
| |
| 17,000 |
| Rent from use of hall | 17,000 | ||
| Less: Outstanding for 2012 | (1,000) | 16,000 | Sale of Old News Papers | 400 | |
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| Profit from Entertainment | 7,300 | ||
| Loss on Sale of Old Books | 1,200 |
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| Electricity Charges | 7,800 |
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| Newspapers | 600 |
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| Meeting Expenses | 7,200 |
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| Postage | 1,300 |
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| Surplus (Balancing figure) | 79,700 |
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| 1,14,700 |
| 1,14,700 | ||
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| Balance Sheet as on December 31, 2012
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| Liabilities | Amount Rs | Assets | Amount Rs |
| Salary Outstanding | 1,000 | Subscription Outstanding | 3,600 |
| Capital Fund (Balancing figure) | 39,900 | Furniture | 2,600 |
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| Books | 6,200 |
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| Cash and Bank | 3,500 |
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| Building | 25,000 |
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| 40,900 |
| 40,900 |
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| Balance Sheet as on December 31, 2013 | |||||
| Liabilities | Amount Rs | Assets | Amount Rs | ||
| Advance Subscription | 3,000 | Subscription Outstanding |
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| Salary Outstanding | 1,000 | 2013 | 20,000 |
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| Add: 2012 (Still Outstanding) | 1,600 | 21,600 | |
| Capital Fund | 39,900 |
| Building | 25,000 | |
| Add: Surplus | 79,700 | 1,19,600 | Furniture | 2,600 |
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| Add: Purchases | 26,500 | 29,100 | |
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| Books | 6,200 |
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| Add: Purchases | 13,000 |
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| 19,200 |
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| Less: Sales | 3,200 | 16,000 | |
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| T.V. Set | 16,000 | ||
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| Cash and Bank | 15,900 | ||
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| 1,23,600 |
| 1,23,600 | ||
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Note: As per the solution the total of Balance Sheet is Rs 1,23,600, however, answer provided in the book is Rs 1,23,800.