Question

From the following Receipts and payments Accounts and additional information relating to Soorya Arts Club, prepare Income and Expenditure Account for the year ending 31.03.2006 and a Balance Sheet on that date. Receipts and Payments Account For the year ending 31.3.2006

Additional Informations: 

1. Depreciation on furniture at 10% p.a. 

2. On 31.3.2006 locker rent receivable was Rs.60, outstanding wages was Rs. 150, and Rs. 500 due for subscriptions.

3. On 1.4.2005 the club owned furniture worth Rs. 2,000 and subscription in arrears on that date was Rs. 400. 

4. 75% of the entrance fee should be capitalised

Answer 1

Income and Expenditure Account for the year ended 31.03.2006:

Note: 

Subscription = 4000 + 500 = 4500 

Depreciation = 1000 × \(\frac{10}{100}\) ×\(\frac{6}{12}\) + 2000 × \(\frac{10}{100}\)= 250 

Interest on investment = 6000 × \(\frac{10}{100}\) × \(\frac{9}{12}\) = 450

Balance sheet as at 1.4.2005:

Balance Sheet as on 31/03/2006: