Q. Receipt and Payment Account of Shankar Sports Club given below, for the year ended December 31, 2006. 
       Receipt and Payment Account 
For the year ending December 31,2006 
Receipt Amount  Payments Amount
Opening cash in hand
Entrance Fees
Donation for building
Locker Rent
Life Membership Fee
Profit from Entertainment
Subscription
  2,600
  3,200
23,000
  1,200
  7,000
  3,000
40,000
Rent
Wages
Billiard Table
Furniture
Interest
Postage
Salary
Cash in hand
18,000
  7,000
14,000
10,000
  2,000
  1,000
24,000
   4,000
  80,000   80,000

Prepare income and expenditure account with the help of the following information:
 
Subscription outstanding on 31st Dec 2005 is Rs. 1,200 and Rs. 2,300 on 
31.12.2006, Opening stock of postage stamps is Rs 200. rent Rs. 1,500 related to 2005 and Rs. 1,500 is still unpaid. On Jan 1, 2006, the club owned furniture
Rs 15000.  Furniture valued at Rs. 22,500 on 31.12. 06. The club took a loan of Rs. 20,000@10% p.a. in 2005. 
 

Dear Student
 
Income and Expenditure A/c
               
Date Particulars    Amount  Date Particulars    Amount 
   (Rs)     (Rs) 
               
  Postage         1,000     Subscription :    
  Add: Utilized from left over of previous year            200         1,200   Received in Cash        40,000  
          Add : Outstanding at the end         2,300  
  Rent       18,000     Less : Outstanding in the beginning       (1,200)       41,100
  Add : Outstanding at the end         1,500          
  Less : Outstanding in the beginning        (1,500)       18,000   Entrance Fees           3,200
          Locker Rent           1,200
  Depreciation :                  
  Furniture            2,500   Profit from entertainment           3,000
  (15,000 + 10,000 - 22,500)            
               
  Interest on Loan (20,000 x 10%)           2,000        
  Wages           7,000        
  Salary         24,000        
               
          Deficit Transferred to Balance sheet   6,200
               
                         
               
               
               
            54,700             54,700


Note: It has been assumed that building fund exists and donation for the building is credited in that fund.


Regards


 

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